00:03Next time you're asked to round up your change in the checkout line, here are a few reasons
00:08you may want to think twice before donating.
00:11Obviously, the point of charity is not to be self-serving, but if you've held onto your
00:15receipts and you're hoping to catch a tax break with all those nickels and dimes you've
00:19donated, think again.
00:21The only way to claim the deduction for charitable contributions is by itemizing your deductions.
00:27But it probably makes more sense to just claim the standard deduction.
00:31Ever since it roughly doubled thanks to the Tax Cuts and Jobs Act of 2017, probably the
00:37best reason to hold onto your change is that you have no control over where the money is
00:43going.
00:43While it's reasonable to expect the businesses being honest about the charity in question,
00:49chances are you don't have the time to research it on the spot and there may be a more effective
00:54organization working towards the same goal.
00:57Similarly, the business likely isn't telling you how and when the donations are given.
01:03While you might like the idea of your donation making an immediate impact, there is no telling
01:08if the business is holding onto donations until it reaches a certain amount or sending them
01:13in batches over time.
01:14Nor do you know if the business is collecting donations as part of a pre-established, legally
01:20binding agreement with an organization, as was the case in 2022 when pharmacy chain CVS was
01:26sued over a deceptive fundraising campaign to fulfill a $10 million commitment to the American
01:33Diabetes Association.
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