TikTok sounds alarm on ‘checkout charity’ — but a financial expert says the viral warning is misleading

The holiday season is known as a time of giving, but you may have seen warnings from social media users advising against “checkout charity” — or, making charitable donations when you purchase your items.

“When you go to checkout, and it asks you to donate to charity, do not donate,” one TikTok creator recently said in a video that has been seen nearly 10,000 times. (1)

She went on to say big retailers use customer donations as a tax write-off for the company.

But according to one expert, such claims are flat-out wrong, and the spread of such misinformation could undermine a multimillion-dollar lifeline for charities.

A distrust of corporations and confusion about tax rules — bundled with the awkward moment a cashier asks if you’d like to make a charitable donation — can lead to curiosity about what really happens to those extra dollars you give at checkout.

In a Washington Post column published Nov. 29, Urban-Brookings Tax Policy Center writer and editor Renu Zaretsky clarified that corporations cannot take tax deductions for charitable contributions made by their customers, according to U.S. tax law. (2)

“It really irritated me a bit because it was just so wrong,” she told the publication of the first time she saw the misinformation spread on social media. “There are charities that are working really well to collect a lot of money for good causes, and I would hate for people to be misinformed and stop giving if they could afford it.”

So, who actually gets the tax benefit?

It depends, Zaretsky says. If the business donates a portion of its sales, it can claim a deduction. If it asks customers to donate, and the business passes the money along to a charity, the customer may be eligible for a deduction.

Most checkout donations are only a few cents or dollars, and shoppers rarely itemize these amounts on their taxes. But thanks to President Donald Trump’s One Big Beautiful Bill, starting in 2026, taxpayers who don’t itemize and claim the standard deduction can deduct qualified charitable donations — up to $1,000 for single filers or $2,000 for married couples.

To sum up, retailers aren’t stealing your tax break, and your small donations might soon actually work for you.

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Checkout fundraising is so widespread because it works. In 2024, 92 checkout campaigns raised more than $275 million across the U.S., according to a report by Engage for Good. (3) The convenience helps charities capture dollars that consumers might otherwise not have given.

A separate study from Binghamton University in 2024 found 53% of Americans had donated to charity while purchasing items within the past year. (4) Shoppers who gave reported donating about $50 per year.

Retailers may also benefit indirectly from the positive branding that comes from partnering with charities. Engage for Good’s report shows 25% of brands saw a sales lift during fundraising periods.

If you’re a consumer and you can afford to be charitable, checkout charity can be a great way to give a little bit to a good cause. But recall that there may be added pressure to donate at the checkout, and you can always say no. If you need to prioritize your family’s needs over giving to charity, that’s a practical decision.

But if you want to create room for more giving, building a budget can help you track your spending and possibly find a few extra dollars you can put toward charity.

You can also choose to donate directly to causes you believe in rather than giving a few cents to whichever charity a store has chosen for you.

The real question isn’t whether or not to donate — it’s whether you understand how your donation works.

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

@animeribbon (1), The Washington Post (2); Engage for Good (3); Binghamton University (4)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.