Wednesday, March 30, 2011

Donating and Deductions

This is just a pet peeve of mine. We all want to help others, and there are a zillion ways to do that.

Wherever I look, Starbucks, Yahoo ,Ebay, etc., there are avenues to donate to whatever the current crisis is. I am not saying not to donate, but suggest you donate so that YOU get the deduction, not these companies.

When you give through these companies and I have no doubt that at least a percentage, if not all of that money gets to the intended recipients, however there are costs associated and the donating company gets the deductions.

Think about this- I go to Starbucks, buy my $4.50 coffee and after 15 of those they give me a "free" one. OK, I have spent $67.50 and they are generous enough to give me a $4.50 drink which they deduct as a marketing expense. Then I donate $20 thru them for Japan. They are not accountable to you as to how much goes to Japan but let's assume they give the total $20. I have given them 87.50 they have given me $4.50 back and deducted all the expenses associated with the coffee I bought as well as the $20 donation to Japan.

I need the deduction! And guess you probably do as well. And I guess I should go get a cup of coffee and calm down.