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I am seriously wondering: is it actually possible for stock listed companies to donate? I mean aren't they legally obliged not to spend more than necessary (tow
by andi999 6y ago
I am seriously wondering: is it actually possible for stock listed companies to donate? I mean aren't they legally obliged not to spend more than necessary (towards their stockholders obliged). Also what does the IRS say on that?
- foota 6y agoNo. This is a misinterpretation of the responsibility. Companies have great latitude in what they do, as long as they're forthright.
- OJFord 6y agoThey have a duty to try to operate efficiently, but that doesn't make corporate social responsibility, a bad hire, or wasting something nobody liked in the canteen illegal.
- andi999 6y agoWell, bad hire, bad food can always be justified (avoiding hindsight fallacy). But giving away money for nothing received (meaning of donation) is something different (at least to me)
- keeganpoppen 6y agocompanies donate money to stuff all the time what are you on about?
- andi999 6y agoSo I read up a little. To tax deduct the nonprofit must have registered as 501(c)(3). Is this the case here?
- sokoloff 6y agoI can pay you to put my company name on your business website or a physical banner at a trade show and account for this as a business expense (deduct it) without you being a non-profit. I have broad latitude to make business expenditures in a manner that I believe is profit-seeking or optimizing for my business. People do this with Google and Facebook all the time. We call them ads. Not every ad campaign has a positive RoI.
- dragonwriter 6y agoYes, its possible, and, yes, they actually do. And the IRS is fine with it.