Youâre standing in McDonaldâs, ordering your fries and a Quarter Pounder with cheese (sorry, Iâm getting ready for my flight to New York) â and suddenly the menu reminds you that children in orphanages have no toys. Instantly kills the mood!
Or you come to work â the office is decorated with garlands, thereâs a Christmas tree â and next to it, a box where people throw in tights, socks, and, forgive my language, I am after all a Christian â even sanitary pads!
Whatâs going on here? First, let me say right away: no, nobody does this for tax deductions. The employer or McDonaldâs only gets a tax deduction because, when you pay a hundred rubles, part of that money would normally be taxed. Theyâre simply exempted from paying that small part. Thatâs it.
So why do they do it? To be fair, they might still have fairly mercantile motives â after all, theyâll be the ones listing a nice round figure in the âCharityâ section of their annual report, describing their achievements in the corporate blog, and the director might even receive a small gift (up to 4,000 rubles) from the childrenâs home or some other organization.
Or maybe not â Iâm just speculating.
But what matters is something else: does society benefit from it? I think yes. Even though you (at least if youâre a Russian tax resident â that part I know for sure) could technically get a tax deduction yourself â say, donate ten thousand rubles and get 1,300 back â in practice, itâs usually not worth the hassle. Corporations, on the other hand, bring strong emotional associations into the act of giving.
When McDonaldâs asks you to donate for underprivileged kids, they know youâre feeling a little guilty â youâre well-off, youâre not just eating, youâre eating out. So surely you can spare a dollar or two for the children, right?
When your employer leaves a box of pads in plain sight â theyâre reminding you: yep, there are people who canât afford basic hygiene. Yep, thatâs the reality.
And now youâre not donating some abstract thousand rubles or ten euros or five hundred hryvnias â youâre giving a specific pack of pads that will help one specific woman during one specific week. You havenât solved a global problem, but one personâs week just got a little easier.
Of course, for you as a rational economic agent, this is a nightmare: not only canât you claim a tax deduction, youâve bought everything at retail instead of wholesale, and youâre probably driving it somewhere on a Saturday when you couldâve just sent the money directly to a charity and let them handle it.
In short, you couldâve left charity as a side quest of your life â another tax, only voluntary.
What corporations do is manipulation. They make you think about things youâd rather not think about. But itâs those unpleasant thoughts and emotional hooks that make you actually care about the problem â instead of just âbuying offâ your guilt with a donation.