Donations can be created in various ways for any eligible 501(c)3 nonprofit through ShoppingGives.
- Merchant Donations - When a Merchant donates a % or $ per product or purchase, donations are tax deductible for Merchant but are not for the consumer.
- Customer Donation - When the Merchant enables their customers to add on a Round Up Donation or an Add-on Donation (a flat dollar amount), donations are tax deductible for consumers but are not merchants.
- Loyalty - When a Merchant enables their customer to redeem Loyalty Points redeemed for donation, these are looked at as similar to a coupon or stored value; loyalty points are tax deductible for the merchant but are not for the consumer.
Action-Based Donation "ABI" – When a Merchant leverages our Action-Based Impact API or Flows to create Action Based Donations, the donation can either be a Merchant Donation OR a Customer Donation. An Action Based Donation should be considered and marked as a Consumer Donation in the API or Flow if an exchange of value from the consumer can be quantified monetarily associated with or as part of the given action.
For more information about our compliance and regulation coverage, please visit https://shoppinggives.com/cause-marketing-compliance-for-retailers/