Thursday, September 10, 2009

Don't make discretionary donations

On many occasions, whether at supermarkets, restaurants or department stores, I've been asked (while paying my bill) to make a discretionary $1 donation to a named charity. Not wanting to look like a stingy b**tard, I've always complied, as the cashier's always been within earshot of other customers.

Jacquie, my friend in Toronto, explained why this is a bad idea: the company in question always takes a tax deduction on their customer's contributions: it's more often than not free money for them at no expense.

Better, ask for details of the charity (eg the website), and donate at home if you're really interested. Then claim the tax deduction for yourself.

And if you dine at Pizza Express in the UK, resist the urge to donate a discretionary 25p to the "Veneziana fund". Unless you were born in Venice.

2 comments:

Unknown said...

If you can handle the discussion with the waiter at Pizza Express!!! I know this company from the inside and in 10 years I heard of 1 or maybe 2 people unwilling to pay for the pizza-price inclusive 25 pence.

AK at US-filial said...

I suppose the wait staff get a commission on the total proceeds. Half of the 25p is donated to the fund (and therefore written off for tax purposes). So far, I believe they have raised almost GBP1.7m, which means a nice tax write off.