Write-offs aren’t magic. There’s no way to write off a donation in a way that will reduce your tax burden to lower than it would have been without the donation.
If you donate $100 to charity and write it off, it reduces your income by $100. If you pay 30% in taxes, it reduces your tax burden by 30 bucks, so you’re still losing $70 versus not mak8ng the donation.
The difference with these round-up measures is that the donation is only given if the customer pays for it, so it breaks even after the cost of implementation/overhead of the system.
Yes, but the donation is not coming from their income. They give 100 bucks away they did not earn and therefore were not actually taxed on. But those 100 bucks are still reducing their income. So, taking your numbers, they pay 30 bucks less without any loss on their actual income.
Write-offs aren’t magic. There’s no way to write off a donation in a way that will reduce your tax burden to lower than it would have been without the donation.
If you donate $100 to charity and write it off, it reduces your income by $100. If you pay 30% in taxes, it reduces your tax burden by 30 bucks, so you’re still losing $70 versus not mak8ng the donation.
The difference with these round-up measures is that the donation is only given if the customer pays for it, so it breaks even after the cost of implementation/overhead of the system.
Yes, but the donation is not coming from their income. They give 100 bucks away they did not earn and therefore were not actually taxed on. But those 100 bucks are still reducing their income. So, taking your numbers, they pay 30 bucks less without any loss on their actual income.
Not really. What they get is free publicity and goodwill.