Quote:
Originally Posted by retiredguy123
But, where does the customer fit in? Are you saying that the money taken from the customers is just a non-deductible gift to the SECO corporation and the corporation gets the full benefit for the tax deductible donation when they give it to the foundation? Just asking.
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RG, notice that the link says, starting January 2023, the money goes directly to the foundation. That makes the donation deductible to the customer, and since its opt in / opt out, its voluntary, the foundation is a legit type.
Prior to this year, SECO collected the money from the customer and made the donation in their name, and technically SECO got the tax deduction. .
Its just a minor accounting technicality, not really worth worrying about since the individual amount in the tax calculation is anywhere from $1 to $2 difference in the tax owed, if it even makes a difference. ..
now for the human behavior point of view, its a way for corporate executives to "do good" in appearance.. . to feel good to help out people.
NOTE: in New England, the utility state "regulators" expect the utilities to make donations, and when i created a spending vendor master for all expense vendors, i see the utility making donations to "MA Chiefs of Police", "Red Cross", etc. .
Remember that electrical utilities are legitimate monopolies, and thus, are regulated to prevent pricing abuse, and part of the "expectations" from the regulators is that they give back to the communities. The state government is in the business of collecting money and distributing it back for public good. The gov regulators make that same expectation of utilities as well, looking at them as extensions of the government.
That's from inside a utility from some "financial
analysis" i used to see on a regular basis. . .