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Are donations tax deductible?

Donations can be created in various ways for any eligible 501(c)3 nonprofit through ShoppingGives — the giving method being utilized informs the tax deductibility of the donation.

  1. Merchant Donations - When a Merchant donates a % or $ per product or purchase, donations are tax deductible for Merchant but are not for the consumer.

  2. 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.

  3. 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.

  4. 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. 

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