Rounding up your change for a good cause may seem like a good idea when you already have your wallet open. But here’s why you should cut out the middleman and make your charitable contributions directly.
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00:00Next time you're asked to round up your change in the checkout line, here are a few reasons
00:08you may want to think twice before donating.
00:11Obviously, the point of charity is not to be self-serving, but if you've held on to
00:15your receipts and you're hoping to catch a tax break with all those nickels and dimes
00:19you've donated, think again.
00:21The only way to claim the deduction for charitable contributions is by itemizing your deductions.
00:27But it probably makes more sense to just claim the standard deduction.
00:32Ever since it roughly doubled thanks to the Tax Cuts and Jobs Act of 2017, probably the
00:37best reason to hold on to your change is that you have no control over where the money is
00:43going.
00:44While it's reasonable to expect the businesses being honest about the charity in question,
00:48chances are you don't have the time to research it on the spot and there may be a more effective
00:54organization working towards the same goal.
00:57Similarly, the business likely isn't telling you how and when the donations are given.
01:03While you might like the idea of your donation making an immediate impact, there is no telling
01:08if the business is holding on to donations until it reaches a certain amount or sending
01:12them in batches over time, nor do you know if the business is collecting donations as
01:17part of a pre-established legally binding agreement with an organization, as was the
01:23case in 2022 when pharmacy chain CVS was sued over a deceptive fundraising campaign
01:29to fulfill a $10 million commitment to the American Diabetes Association.