This is a commonly repeated myth but it isn’t true. Nobody gets a tax write off in point-of-sale fundraising. Charities ask stores to do it because it’s one of the most efficient and effective ways for a charity to raise money. Chairty events are costly, and asking people on the street gets a lot of rejection. Stores agree to do it because they get to run ads saying they helped raise millions for charity and the charity will usually shout them out as well.
I’ve always been curious how the money gets to the charity. Does the corporation put the donations into an account and collect interest on it before they give it to the charity?
And who pays the cc fees? And do they have an agreement with the cc provider for a kickback? There are so many hands involved with simple monetary transactions most people wouldn’t believe it.
It’s a good question. The flat fee is already covered by your item purchase, so at worst it would be 2.5-3.5% of the donation amount, which isn’t terrible.
This is a commonly repeated myth but it isn’t true. Nobody gets a tax write off in point-of-sale fundraising. Charities ask stores to do it because it’s one of the most efficient and effective ways for a charity to raise money. Chairty events are costly, and asking people on the street gets a lot of rejection. Stores agree to do it because they get to run ads saying they helped raise millions for charity and the charity will usually shout them out as well.
Damn, I didn’t know I was duped. I do wonder how this holds up in countries other than the US.
I’ve always been curious how the money gets to the charity. Does the corporation put the donations into an account and collect interest on it before they give it to the charity?
And who pays the cc fees? And do they have an agreement with the cc provider for a kickback? There are so many hands involved with simple monetary transactions most people wouldn’t believe it.
It’s a good question. The flat fee is already covered by your item purchase, so at worst it would be 2.5-3.5% of the donation amount, which isn’t terrible.
Charity is profitable.
They still take credit for it like you said.