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Companies don't take tax deductions the same way as individuals. For individuals, charitable donations are made with pre-tax money. So if you pay taxes at a 33%
by dankohn1 11y ago
Companies don't take tax deductions the same way as individuals. For individuals, charitable donations are made with pre-tax money. So if you pay taxes at a 33% rate and give $100 to the EFF, it's $67 of your regular post-tax income you're contributing, and $33 of what would otherwise be tax revenue.
For companies, essentially all expenses are deductible, and they pay corporate tax on what is left over. Corporate taxes are on profits, which are revenues minus expenses. So, there is no advantage to Apple or any other company in providing funding to a 501(c)(3) vs. a 501(c)(6) trade group or a consulting firm.
And, I doubt that LLVM will be raising that much deductible money from individuals. But, there is also a branding and marketing aspect to tax status, separate from the actual financial implications.