When retail establishments collect from customers and give to charity, are they granted a tax deduction?

Question

I know it's cynical of me to think this, but every year the large drug-store and other chains have their cashiers ask every customer if they'll donate to a designated non-profit organization. Then, after the campaign, they advertise the huge amount of money they (through their customers) donated.

Do these businesses obtain a tax deduction for "their" generosity?

Answer 1

The donating does not benefit the business from a tax standpoint.  For the business to be able to deduct the money that goes to the charity, they would also have to claim (as taxable income) what they received from the customer, so it would be a wash.

The business can deduct the cost of the advertising.

The business also deducts the entire amount that they pay the cashiers, including what they are paid for the time that they spend asking for donations.

Answer 2

Nope, they get the deduction only for money they donate.  The IRS has strict and specific rules on charitable deductions..  Some companies that collect do 'fund-matching" so if they do, they can get a tax refund for the percent that they paid out to match not the total of the donation.