ANSWERS: 3
  • If an institution have $100 dollars, they could donate $100. If they spend it on advertising, millions of sympathetic or guilty feeling people see it and donate, potentially more than $100. So they end up with more money.
  • They get a two-fer...advertising money can be tax deductible..so they spend the money to make the pitch and they deduct it from their overall tax consequences..they've reached their audience and benefit from that and they benefit from the tax deduction.:)
  • These organizations do not pay for airtime, they are sponsored by the broadcasting office. This is how the broadcasters save on taxes by allowing some to place their ads on for free.

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