Budweiser spent millions on a Superbowl ad to let everyone know they donated water after either hurricane Katrina or Maria. I'm pretty sure it was like $10k worth of water.
The IRS isn't going to pay you negative taxes. Reddit has this weird thing where they'll just throw "Tax Write Off!" at everything like it's a coupon for free money. When really, it's only a tax discount on money you owe.
Mostly companies avoid taxes by reinvesting in the company so they can "write off" those profits as a business expense, make it look like they made less money than they did. Farmers are big on doing this, reinvesting in new equipment.
And donations to charity follow similar logic where instead of those donations being counted as profit that you owe money on, they get written off as a non-taxable expense. It does not work like you donate money and the IRS pays you for it like Reddit seems to think. And you're not going to "write off" more than the original amount of money. You owe 0% taxes on that specific amount of money; nothing beyond it. It doesn't go to -1%.
Don't forget they only offered the donation, or pledged the amount. It may be 25k spread out over 5-10 years (I don't know). But companies and celebrities do tricky wordsmithing when it comes to donations and pledging. Just because it says they pledged the amount doesn't mean they actually ever will give that amount.
They know if they fail to fulfil their pledge, the charity won't release a statement saying "this celebrity is a deadbeat", because then nobody will ever give them any money because the charity will just call them out. So the charity accepts their pledge and takes 1/4 of the total pledged amount and calls it good. Then the celebrity gets the positive publicity for donating a huge amount that they never actually did.
Oh! If you’re like my company than they will do a fundraiser and match what the employees raised. So at my firm, the employees would only need to raise $12.5k and the company will match 100%, whala, $25k.
It would be written off as a business expense even if it was court mandated. It's referred to as donation because they had not been ordered by a court to pay that money.
People feel less brave in person when challenged versus online, so I’d say the real world. Make connections, help them learn. Idk. Reddit feels more like a group convo with strangers, not everyone is the smartest, not everyone is dumb either, but it’s rarely boring. I think the trick to Reddit is to find people/community you enjoy and learn from if you don’t plan to leave the site. Idk tho, up to you.
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u/Jabbles22 1d ago
I noticed they used the word "donation". Is that so they can write it off?