Tax Write-off
“OK… but like… can’t I… can’t I just pay it back…? With, like… the taxes I wrote off?”
– Ronny
Craig the Accountant returns in another installment of Unfinished Business! (Episode 1 | Episode 2 | Episode 3 | Episode 4)
It is one of my biggest pet peeves to see, when the topic of companies donating to charity comes up, all the internet cynics coming out to say, “They only do that so they can write it off their taxes!” And all I can think in response is, “What?” and “So what?!” and “What do you think a tax write-off does?!” Because the way they bandy this out as some sort of accusation makes it sound like, to me, they think a tax write-off… I don’t even know, saves them money? Gives them money? Something in their tone suggests that donating to charity and then writing off that donation on your taxes doesn’t count as charity, somehow.
Just a quick rundown – writing off charitable donations from your taxes does not make you money. That money you spent on charity was still spent. You’re just not taxed on that money you gave to charity. OK, I feel like anyone who genuinely does not know what a tax write-off is won’t understand based on my explanation, so I would implore those of you who genuinely don’t know to find a credible resource for tax education. A credible resource! NOT a random Reddit comment pissed off that their local grocery store asked them to donate to starving kids!
Bottom line, no one makes money donating to charity, not unless they’re committing charity fraud, which is a completely separate thing from write-offs and is literally a crime. And I’m not trying to say corporations donate to charity purely out of the kindness of their heart. But good PR is a genuinely logical reason for soulless corporations to donate to charities, if you really need a rationale to fit this action into your cynical worldview.
– James
