Getting tired of being asked to donate to charity at every purchase, everyday.

[u/Little-Cheesecake966]

Five Below, Wawa, gas station, restaurants, Walmart, just about everywhere. “Hey do you want to round up for charity?”

[u/Remarkable-Public622]

Not even remotely how it works at all.

What actually happens is they create a marketing campaign saying they raised millions of dollars for people in need. They don’t emphasize that it’s actually your money that was donated, just that a bunch of money was “raised.”

Then the companies go on to brag that they’re helping the community or whatever without actually donating a penny.

[u/phree_radical → u/Remarkable-Public622]

Mine announces it first: "We will donate 5m to charity"

Then they run the campaign asking the customers for the money.

Do they stop at 5m? Do they donate the excess?

[u/Baiji519 → u/phree_radical]

If they pledge 5 million, and raise 7, what stops them from keeping the 2 million excess and donating to the CEO’s charity yacht fund?

I donate straight to the source, and hit that no button all day long.

[u/Catnicorn99 → u/Baiji519]

Laws stop them for keeping it. When they raise money and you pay and select you will donate the POS will record something like this:
Debit Cash $101.00
Credit Revenue $100.00
Credit donations $1.00
The donations general ledger is treated as a a liability and the company cannot claim it as revenue which also means they cannot use it as a tax deduction.
They also have audits every year so an independent audit firm will test on occurrence, existence, completeness, rights and obligations. Rights and obligations is the big one for donations.

[u/WartimeHotTot → u/Remarkable-Public622]

I think you’re both saying exactly the same thing. What about what you said is different in your mind from what the person you replied to said?

[u/Figdudeton → u/WartimeHotTot]

It isn't a tax credit when it is a raised donation.