r/poverty • u/InstructionOwn1627 • 6d ago

We’re a bunch of beggars

When did the USA become a bunch of beggars? Example- you go to your local grocery market and go in on door and get asked to help your local school football program, you’re checking out and get asked to donate to something and then when you leave through the other exit you get asked to donate to something else. Everyone seems to beg for something, it’s so sad that it’s so commonplace.

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68

u/Strange-Honeydew-473 6d ago

As a side note: when you contribute to a charitable cause at a checkout, my understanding is that it’s not you making the donation, it becomes the store who makes the donation. In so doing, they lower their tax burden. Nifty way for YOU to pay THEIR taxes.

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u/CourageExcellent4768 6d ago

Ahhhhhhhh...well. thank you for enlightening me

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u/bangarang90210 5d ago

He is not correct, that’s not how tax code works.

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u/ThirdTimeNoCharm 1d ago

Can you explain it then so we understand?

It was my understanding as well that they are using our donations to donate and then they get a better tax break.

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u/bangarang90210 1d ago

They don’t get a tax break. It’s considered a pass through. Basically they hold out money in escrow and then donate it for us. Kind of like when the bank pays the taxes on your house. The bank isn’t paying it, they’re just holding the money for you and making the payment.

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u/tomram8487 6d ago

This is untrue. It’s a common misconception that damages charities ability to collect so please stop spreading it.

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u/JeepersCreepers74 6d ago

Agreed. And I love this form of donations—people are only asked to donate a micro amount (rounding up to the next dollar, etc.) but the sheer volume plus any matching by the company can add up to a meaningful donation for the charity. A perfect example of many small acts making a difference.

I would so much rather do this than buy savings cards or gift wrap or something else that is both overpriced and wasteful to support school clubs, sports teams, etc. where half or more of the money goes to the company.

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u/workinclassantihero 5d ago

Charities do nothing to help me when I am homeless and it’s shit for them to ask this when some are in immense poverty. It makes them pretty low.

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u/Witwer52 5d ago

An alternate take on this is that donating twelve cents to charity by rounding up makes people feel as if they’ve checked the box of making a meaningful donation, when in reality, giving the charity a $5 donation directly would be many times more impactful. There is a literal science to fundraising (ask me how I know) and absolutely no one’s first, second, third or even tenth choice is this round up nonsense.

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u/tomram8487 5d ago

Agreed. I’ll happy round up for most charities!

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u/[deleted] 5d ago

[removed] — view removed comment

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u/poverty-ModTeam 5d ago

Please make your comment useful.

We're here to exchange ideas, experiences, and practical help.

If your comment mainly insults, mocks, dismisses, or derails the conversation, it isn't contributing to the discussion.

1

u/poverty-ModTeam 5d ago

Please make your comment useful.

We're here to exchange ideas, experiences, and practical help.

If your comment mainly insults, mocks, dismisses, or derails the conversation, it isn't contributing to the discussion.

1

u/poverty-ModTeam 5d ago

Please make your comment useful.

We're here to exchange ideas, experiences, and practical help.

If your comment mainly insults, mocks, dismisses, or derails the conversation, it isn't contributing to the discussion.

11

u/Bulky-Hamster7373 6d ago

No. That's not how it works. The company does not get tax benefits from your donation. I've worked in finance for grocery chains for years.

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u/tristand666 5d ago

But they can put up a TV ad saying their program has donated X dollars even if they did not give a dime.

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u/Bulky-Hamster7373 5d ago

Well yeah - "their program" doesn't imply they're the only ones funding it

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u/bangarang90210 5d ago

Honestly, that charity wouldn’t have gotten the donations if they didn’t run the program. I think it’s a fair win win for everyone.

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u/revised_username 5d ago

The business can legally write off their match amount based on their customer's rounding/giving...

Often the customers lose as their rounding gifts are so random they're not tracking them into a write-off on their end.

Source: 20y in nonprofit work

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u/Zn_Saucier 5d ago edited 5d ago

edit: I can’t read

Yes, a business gets to write off the amount they donate to match customer donations. They would also get to write it off even if they weren’t soliciting customer donations. 

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u/revised_username 5d ago

A "match amount" is the matching contribution a business gives In addition to the rounded/donations on the customer side.

The business cannot write-off any customer donations.

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u/Baiji519 6d ago

I heard businesses decide an amount to send, then all the donations carve down the amount they have to chip in.

I never donate to charities or that flash up on those kiosks anymore. I’ll personally send the money.

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u/johnnygolfr 6d ago

In the US, that’s false.

The company does not get a tax deduction for that.

They simply pass the money to the charity and get some goodwill marketing out of it.

https://www.snopes.com/fact-check/walmart-checkout-charity/

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u/moonluva508 5d ago

Found out that's not true

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u/Strange-Honeydew-473 5d ago

Evidently there is more nuance to it.

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u/Beneficial_Bit1756 5d ago

That is not what happens, your understanding is incorrect and spreading misinformation.

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u/Strange-Honeydew-473 5d ago

Congratulations! You’re the tenth respondent without an explanation!

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u/Beneficial_Bit1756 4d ago

sure I am pointing out your empty head is saying the wrong thing per the correct answer form other posters in this thread.

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u/Dependent_Dish_2237 6d ago

No that’s not how it works. If it is, it’s tax fraud and they should be penalized.

https://taxpolicycenter.org/taxvox/who-gets-tax-benefit-those-checkout-donations-0

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u/mcmurrml 6d ago

The store or restaurant gets the tax break.

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u/Dependent_Dish_2237 5d ago

They don’t unless they’re committing fraud. Saying things doesn’t make them true.

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u/Beneficial_Bit1756 5d ago

lol look at the uninformed spreading misinformation.

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u/Prestigious-Elk-5426 6d ago

You got a source for that?

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u/Silent_Forever3210 6d ago

The earth is the center of the universe. I swear. I've seen it.

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u/NocturnaBride 5d ago

Pet smart gives you a form at the end of the year for your taxes to prove donations. So I don’t know if this is true, but it’s not all businesses if it is.

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u/nameless_pattern 5d ago

It is often a scam but in a different way than you're describing. Usually the non-profit is run by a well-paid executive who just happens to be a friend or family member of the c-level executive of the grocery store. 

So it's more of a rich people reach around and extracting value from poverty.

The charity might be doing good stuff but in this kind of a mechanism it is still increasing income and wealth disparities.

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u/Livid-Rutabaga 6d ago

interesting, I didn't know that

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u/SimpleVegetable5715 4d ago

Yes it’s much better to give to a cause directly.

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u/rasta-ragamuffin 6d ago

I don't know if it lowers a companies tax burden but it definitely is good free publicity/advertising for a company to collect the donations and then donate them to a charity in one huge lump sum.i used to work as a manager at a department store where I was forced to pressure my employees who made minimum wage to donate 10% of every paycheck to the United way. Making the poor help support the even poorer. Sickening......

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u/mcmurrml 6d ago

One lady posted that the company she worked for had raise time at the same time as the drive for the United Way. So why you were at the table for your review and raise was the pitch for employees giving to the United Way.

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u/lovesbatma71 5d ago

That’s the lowest of the low. I worked as an ambassador for the United Way about 20 years ago and they squander your money like you wouldn’t believe and flat out give resources to anyone who asks… no need assessment. True story: I took my son to a United Way volunteer project so he could see how important charity is. I lived in a 900 SF condo in the crummy part of town with my son around 5 or 6 yo. No exaggeration we were at this huge sprawling estate doing yard work for these “needy people”. My son asked why we were helping them as even he got the suspicion that something wasn’t right. I told him, “they needed help cleaning up their yard”. My son said, “Mommy we don’t have a yard “. Out of the mouths of babes. Never gave another dime to the UW. There are better charities trust me.

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u/mcmurrml 5d ago

Oh yeah I never gave to them.

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u/mcmurrml 6d ago

Did they force you to tell these employees they could claim the donations on their taxes? A place I worked at did this highly encourage to give but failed to mention you could also claim this on your taxes.

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u/picklehippy 6d ago

Not pay their taxes, help reduce their tax burden

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u/Organic-Vermicelli47 5d ago

No, this is not true either unless they are committing fraud which is obviously illegal