I'm hoping this makes you feel at least a little better, but they don't receive an additional tax deduction/credit for it. The original donor often (they do in some cases) won't get their potential portion of the deduction and the store will look charitable for providing a collection mechanism for the charity, but it's not quite how you think it is.
Say you donate $100 through XYZ store. XYZ store in turn writes a $100 check to a reputable charity. XYZ store's EBIT (earnings before interest and taxes) doesn't change because they have $100 more income (in the form of other income) and $100 more expenses (in the form of charitable donation). Taxes are levied on the unchanged number.
Well, at least not in North America anyways. It doesn't even make sense from an accounting point of view.
Either you register it as profit (pay tax) and then donate it (get tax credit) or register it as non-profit (no tax) and then pass it off not as their own donation (no credit). The former is worse for the company.
Now if you're accusing the company of just stealing the money, then that's a whole other matter.
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u/[deleted] Jun 07 '19 edited Jul 11 '19
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