this post was submitted on 17 Jun 2025
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Someone correct me, but I understood that donations serve as a tax write-off.
So they don't care about the donations as much as their own savings.
Since you asked, the tax write off stuff is basically a myth. If you donate, let's say $20, then they have to mark down $20 of additional income, raising their tax burden by $20 x 21% (federal, plus whatever state tax there is). Then, when they hand over the money to the charity, they get to take a $20 deduction (not a credit) which means their tax burden is lowered by $20 x 21% (again plus any state tax). So comes out even in the end. The deduction basically says, hey, remember the $20 I put down as income? Don't tax me on that because I used it for a tax-exempt purpose. They report it as income, then report the donation. Nothing fishy there.
However, depending on how long they hold onto that money, it's possible to use the money to make other money, like investing it or even just sticking it in a savings account where it would get a little interest. And with enough donations, that might add up.