The WoW team makes WoW. That’s all they do. You’re blaming them for a decision that Blizzard as a corporation has chosen to make.
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Again… we don’t know how tax laws change every year for corporations, we don’t know the difference in donating to different charities at different times under different circumstances and if any of that changes how things need to be done.
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I don’t know if you’ve been paying attention for the last couple of years, just kinda throwing this out there, might be news to you there was just a tiny little overhaul to the tax codes that took effect between the Mercy fundraiser and this one.
You might have heard about it at your local library or on the news. Maybe in a newspaper or on the internet.
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It isn’t that weird when you think about it. Federal Tax laws for corporations changed last year. This affects things a corporation will do including charitable donations. Corporations do not make donations out of the good of their heart. They don’t have hearts.
They make donations for tax purposes. The people who crunch the numbers know exactly what amount of donation is needed to produce the best benefit for tax purposes.
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We’re going to donate X monies from this pet drive.
Why not more? Because we still like the monies too.
The only information I can find is caps on individual charitable donation caps for tax write offs, but nothing about corporate charitable donation caps for tax write offs.
I’d appreciate if anyone can find any info on any changes to corporate charitable donation caps for tax write offs.
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Go tell that to the artists, coders and design teams that their months of work making this pet cost them nothing.
They could use a good laugh.
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You can only write off so much in taxes. Blizzard is a company and companies need to be profitable in order to exist to donate to charities. If you’re worried you’re purchase will push them past the 3 million cap, which is likely what they believe they can write off, don’t buy it.
The best run non profit companies typically don’t have 90%+ of their donations go straight to charity. To Stay competitive in the job market and hire the best people and put on the best events and such to raise money costs a lot of money. Donating 30% of 10 million is a lot more than than donating 100% of the proceeds from a bake sale.
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Shouldn’t all the funds go to the charities? If they get 4 million great. but i would expect all 4 million to go to the charity. Or am i just crazy here?
I also don’t think blizzard will openly announce when the cap is hit. When cap is hit, the purchases after will be going to blizzard and not the charity. I’m sure if people knew that they were supporting blizzard and not the charity, they be less likely to buy it. Thats juts me though.
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K so I managed to find some info on the new tax law for charitable contributions for corporations.
Here’s some quotes:
A corporation can claim a limited deduction for charitable contributions made in cash or other property. The contribution is deductible if made to, or for the use of, a qualified organization. For more information on qualified organizations, see Pub. 526, Charitable Contributions.
Limitations on deduction.
A corporation cannot deduct charitable contributions that exceed 10% of its taxable income for the tax year.
Blizzard’s revenue for 2019 is listed at $1.28 billion. 10% of that is way more than $3 million, they could still continue giving more of the profits to charity instead of pocketing the rest.
You can refer to IRS Publication 542 for the quotes I listed.
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Well you know the community “Blizzard is a greedy company that they only care is money and never about community. Also they support Communism.”
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This isn’t their only charity drive for the year. They had a big charity auction during Blizzcon and have a charity plush on the gear store right now. Plus they could have other donations throughout the year.
Plus revenue does not equal profit. They don’t pay taxes on revenue. They pay it on profit.
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It’s December now, it’s a little late to have more charitable donations at this point.
They have wiggle room of about ~$128 million. Even with all the other charitable donations they’ve done so far this year, I really doubt that adds up to that much, they could probably easily continue giving the sales of Dotty to charity instead of capping it at $3 million.
But they’re a public company so their financial records are public, we can find out later when they release their financial info for 2019 later on if they could have given more instead of capping it at $3 million.
Just looked it up and their net income (which is profit) is still around the same, at ~$1.5 billion or so.
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The issue is once sales reach 3 million dollars any subsequent sales are no longer going to charity, and I doubt Blizz will keep a running tally so that we know where our money is going when we make the purchase. Scummy move imo, if it’s going to be a charity item then it should all go to charity whether they sell $10 worth or $10 million worth.
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I mean, yeah? That is what that exact wording means.
Are they going to make a big announcement when donations hit cap so people wont be buying it thinking their money is going to sick kids when its just going to Blizzard’s pocket? Not likely. Its dishonest and scummy.
I understand them wanting to make something to cover the hours spent making it, but then why not be up front about it by saying a % spent will go to them for every sale.
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Yeah so scummy donating up to $3 million to charity.
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The scummy part is them potentially profiting on a so-called charity item.
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No it is not dishonest and scummy. They could sell it for the normal price and pocket 100% of it and most of us pet fanatics are going to buy it the same. So you people are really seriously going after them because you may help them make some money as they donate millions to charity…
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- what was the cost of making these?
- what is scummy about donating millions and potentially making some yourself?
- for them to make a cent they have to sell 300,000 of these (over the next 28 days). You are most likely safe from making Blizzard any money.
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