Curious about donations through retailers

[Rosemary1]

More and more every large retailer asks shoppers if they want to contribute to a charity when paying bill.

When contributions are turned over to charities, are they considered donations from the retailer? Does retailer get the tax deduction for the cumulative amount? Anyone know?

[kgcayenne]

How would the retailer have your name & address to track the cumulative value of your contributions as they reach the point of issuing a receipt to claim on your tax return?

They don't.

One can only draw the conclusion that the retailer gets the credit for their shoppers' generosity.

[Rosemary1]

That was my conclusion as well but wondered if anyone knew for sure.While donor shoppers don't except a tax receipt, it nevertheless seems not on the up and up for the retailer to get any tax receipt for the donations handed over given by others.

[Dizzy1]

Would there not be something on your receipt?

[jimmy4321]

I have no idea but i'd imagine CRA got that angle covered when it comes to these retailers and that method of collection.

[oneh2obabe]

According to Philippe Brideau, spokesperson for CRA, “A registered charity can only issue an official donation receipt to the actual donor, the individual or organization that made the gift. If a lump sum is donated without detailed (individual) donor information, the charity will not be able to issue any receipt.”

Businesses collecting small donations should track them separately from general revenue, and submit them, in full to the designated charity. The charity issues no tax receipt. Sometimes, businesses “match” donor dollars with funds of their own; in those cases they get a receipt, but only for the portion they funded themselves. So, as long as no one cheats, there is no direct financial advantage to the business.

<snip> In summary, if a reputable business asks you to give an extra dollar for Sick Kids, the hospital likely gets the money and the business gets brownie points. If someone runs a bake sale with “proceeds” to your favourite cause, the charity is better off if you write them a cheque, get the receipt yourself, and stay on your diet. <snip>

https://www.thestar.com/life/2013/08/11 ... arity.html

[Even Steven]

When contributions are turned over to charities, are they considered donations from the retailer? Does retailer get the tax deduction for the cumulative amount? Anyone know?

As somebody who raised money for a donation in the past from customers and turned it over to a charity/cause, I can tell you that it's impossible to get a donation benefit from that money. Accounting just doesn't work that way as the source can't be traced.

However, if I add any of my corporate money to the donation, I can benefit from that specific amount of donation.

[OREZ]

I don't mind donating to charities when I can but I must say, I'm getting a little tired and mistrustful of being shaken down for a donation almost every time I buy something or even walk into a store these days. How am I supposed to know where that money goes and if it's really making a difference?

I used to do it all the time. These days I'm reluctant to do so.

[Smurf]

I have to agree Orez, I never give in stores etc. I give directly to charities of my choice and that way I know where the money goes. I also make sure I know how the particular charity or whatever works and that 80% or whatever doesn't go to running the charity as happens in so many cases.

[Always Sunny]

I was under the impression that retailers were able to (and did) claim the accumulation of donations for a tax credit, however:

Why do retailers like Wal-Mart, Loblaws, the LCBO and Ardene hold point-of-sale campaigns? No, not for the tax credit; retailers aren’t legally allowed to claim a deduction for donations of cash that doesn’t belong to them, even if they did collect it.

http://www.macleans.ca/economy/economic ... r-in-2015/

Apparently it's more about corporate social responsibility.