Friday, November 10, 2017

U.S. Charitable Donations going to Terrorist Organizations?


U.S. companies donating to charities is nothing new. The practice is rather straight forward as companies look for ways to cut down on federal income taxes it must pay out.

However, one of the major problems in recent years is where some of these charitable donations are going. 

While donating money to foundations such as the Red Cross or special cancer research charities is common place, other businesses look to diversify donations into varying other non-profit organizations. Some of these non-profit organizations, though, have questionable ties to entities outside of the United States, including some terrorist organizations.

General Electric made waves last year as it had a federal tax return of zero dollars. One of the major reasons behind this is because of the charitable donations it makes throughout the year in order to cut down its tax return.

However, the company, as well as several other major corporations within the U.S (such as Johnson & Johnson and Charles Schwab), have donated well over $5 million in the last nine years to non-profit organizations that have terrorist ties.  Some of these organizations are located overseas. 

A major reason why a corporation might donate money to a non-U.S. organization is to receive good will from the foreign government and possibly land desirable contracts within the other country. However, this has led to money potentially ending up in the pockets of terrorists. 

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