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So, I was shopping in my local Wal-Mart today......

 
 
Reyn
 
Reply Sun 11 Sep, 2005 09:20 pm
.....(yeah, I know, I know), and was noticing in many parts of the store, little signs suggesting this item and that item to donate to the Katrina disaster victims' fund. Are all Wal-Marts in the U.S. doing this?

After seeing this for a while, I got rather annoyed with having it in my face and was wondering what these big boys were doing themselves to help.

Well, later on in the day, I 'Googled' a bit and came up with this here[/color].

I guess it's a substantial amount, but do you figure it's a tax write-off, or are they going to give the government a break, too? Rolling Eyes

At work, many of us donated some cash towards a fund that the company has started for the relief fund.
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Merry Andrew
 
  1  
Reply Tue 13 Sep, 2005 03:52 am
Yeah, in part, at least, it's a tax write-off for the corporation. But the money does go to a worthy cause. In a way, it's preferable to giving through an established charity because Walmart executives aren't going to take any 'administrator's fees' for themselves before turning the cash over to whomever.
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squinney
 
  1  
Reply Tue 13 Sep, 2005 04:22 am
How would WalMart get a deduction?

You see the item marked as an item the Katrina survivors might need, you BUY it, and I assume you then either leave it for Walmart to ship or ship it yourself.

Right?

Maybe a deduction for shipping if they do it, but otherwise you pay for the item so Walmart isn't donating it.
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shewolfnm
 
  1  
Reply Tue 13 Sep, 2005 07:17 am
maybe a deduction because they were looted so badly.. so if they make a certain ' quota' in sales they get more of a refund for lost items? Maybe above and beyond what they were getting in the first place?

ehh.. long shot.
who knows
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Reyn
 
  1  
Reply Tue 13 Sep, 2005 07:21 am
The amount of money that Wal-Mart is donating to the relief fund is independent of the effort of the public buying items from their stores to send to the hurricane-stricken area.

I was just wondering if the portion that Wal-Mart is donating (the $17 million) gets a tax break. I would imagine so. Just like any other donation, I guess.

Incidently, in my local area anyways, there is a Home Depot right next door. There was an area set up there for people to donate to the disaster relief fund. There was a truck(s) there. So, the shipping was independent of that as well.
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Merry Andrew
 
  1  
Reply Tue 13 Sep, 2005 03:24 pm
Exactlt, Reyn. It's a tax write-off as any charitable donation would be. Plus, if they can claim lost revenue due to the promotional effort, that's another deduction. Amazing what good CPAs can write off. Most large corporations do not give money to worthwhile charities because they're altruistic. They do it because the taxes they would have to pay on the extra income would be higher than the amount -- which can run into millions -- that they are contributing.
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squinney
 
  1  
Reply Tue 13 Sep, 2005 03:27 pm
Now, Merry, that isn't very merry of you. Who turned our sweet Merry Andrew into a cynic?
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Merry Andrew
 
  1  
Reply Tue 13 Sep, 2005 03:29 pm
But I'm a sweet cynic, Squinney.
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spendius
 
  1  
Reply Tue 13 Sep, 2005 05:52 pm
Best way MA.Keep it up.
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Merry Andrew
 
  1  
Reply Tue 13 Sep, 2005 06:39 pm
spendius wrote:
Best way MA.Keep it up.


Some days I can't even get it up (Apologies to Slappy Doo Hoo).
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Reyn
 
  1  
Reply Tue 13 Sep, 2005 08:06 pm
Merry Andrew wrote:
Most large corporations do not give money to worthwhile charities because they're altruistic. They do it because the taxes they would have to pay on the extra income would be higher than the amount -- which can run into millions -- that they are contributing.

Agreed. That would be my take on "the spirit of giving" as well. If they can put a good spin on it with a humble appearance, so much the better. Rolling Eyes

Bah, humbug! Mad
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