No, that's not how it works. The money always goes directly to the charities in cases I've seen. Even if it did go to the company as income, then the donation would just be a deduction. So let's say they make $1,000 in a day in profit and $10 on top of that from these donations for a total of $1,010. They give the $10 to charity, it gets deducted from their taxes, and then they only pay taxes on the $1,000 profit. Which is exactly what they would have paid taxes on without the donations.
LawFag 0 points 9 months ago
No, that's not how it works. The money always goes directly to the charities in cases I've seen. Even if it did go to the company as income, then the donation would just be a deduction. So let's say they make $1,000 in a day in profit and $10 on top of that from these donations for a total of $1,010. They give the $10 to charity, it gets deducted from their taxes, and then they only pay taxes on the $1,000 profit. Which is exactly what they would have paid taxes on without the donations.