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this post was submitted on 16 Dec 2023
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No, they don't.
They literally just don't have to count the amount you gave them as income. That's it. That's the whole thing. You can't profit off of middle manning donations unless you commit fraud.
So, you're kind of correct. However, you CAN make profit by acting as an 'organizer' for the charity event, where the charity pays you the money as a service, but directly gets the donations. See: Games Done Quick, which is a for-profit LLC that the various charities they 'support' pay them to put on the event. Of course, this number naturally is likely to end up being a % of the last event's donations.
I don't see what that has to do with the premise, which is the somehow donating to charity gives you a net profit because taxes. The real issue here is that people don't seem to understand taxes (understandable, it's complex).
Here's how it works WRT to taxes:
Middle-manning charitable gifts is net zero tax-wise. The only potential for profit has nothing to do with tax write offs:
In short, donating to charity doesn't somehow make you better off in terms of taxes, at best it helps you with your branding.
Also if your on the charity board etc you can use the funds for “marketing” or “admin fees”. Its a quite common scam that crappy charities only donate like 5% of donations
And fraud is not something youtubers is known for!
That's not the point. It's the constantly repeated "they get tax benefits" lie despite that never being the case.