What is one reason individuals and corporations contribute so generously to charitable organizations?

O Donations to charitable organizations are tax deductible.

O Banks offer incentives to customers who donate to charitable organizations.

O Employers are required to ask employees to donate to charitable organizations.

O Donations to charitable organizations raise credit scores.

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Question

Business

Giovanny Kane

15 October, 19:16

What is one reason individuals and corporations contribute so generously to charitable organizations?

O Donations to charitable organizations are tax deductible.

O Banks offer incentives to customers who donate to charitable organizations.

O Employers are required to ask employees to donate to charitable organizations.

O Donations to charitable organizations raise credit scores.

w! se

Mark

Back

+2

Answers (1)

Know the Answer?

Hadley Potts · Answer 1

Donations to charitable organizations are tax deductible.

Explanation:

The government see charitable organizations similarly as they view welfare programs, since it allocates a certain amount of wealth from the rich to the poor. This is why most countries in the world will allow charitable donations as tax deductible.

That being said, research conducted by Oxfam report actually showed that Companies actually use this rule as a loophole to escape tax payment. Their finding indicates that between 2008 - 2014 alone, US corporations has use this loophole to hide around $1.4 Trillion worth of Taxes.