This is true to a certain degree that these companies can get a 'commission/ handling fee' for collecting the money. However I think and could be wrong that this practice was outlawed awhile ago.acidcaribou wrote: ↑ I prefer giving directly to charities like this, as opposed to being hit up for $5 every time I buy groceries or wine.
A lot of people don't realize this, but when those companies donate it, and they get the tax write-off.
If you do it this way, you get the tax receipt.
For companies, its literally a money-making scheme dressed up as charity.
Companies like Costco will give you a tax receipt and they also used to match the donations dollar to dollar to a certain amount. We never donate small amounts at the cash. It is better to donate at least $20 as that is eligible for a tax receipt.
At Costco in the past I have asked if they match the donation and then make a donation. Generally the staff have gone out of their way to get my information and to issue a tax receipt.
Sadly there are many shady companies out there.