The truth about this "donation"
As with all Children's Miracle Network Hospitils donations, your funds are tax-deductible and can be counted as such during next year's filings.
Any donation made to them is tax deductible. When was the last time you heard in the news or anywhere of a corporation not taking advantage of a tax deduction?
Now we have this:
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 Publication 526, Charitable Contributions.
So we know they can claim a limited amount.
Let's see how "limited" it truly is:
Limitations on deduction. A corporation cannot deduct charitable contributions that exceed 10% of its taxable income for the tax year. Figure taxable income for this purpose without the following.
The deduction for charitable contributions.
The dividends-received deduction.
The deduction allowed under section 249 of the Internal Revenue Code.
The domestic production activities deduction.
Any net operating loss carryback to the tax year.
Any capital loss carryback to the tax year.
ATVI gross taxable income for last year was $4.86B dollars (http://www.marketwatch.com/investing/stock/atvi/financials), 10% of that is $486 million dollars. Even if the amount donated exceeds this (highly doubtful) there is this provision:
Carryover of excess contributions. You can carry over, within certain limits, to each of the subsequent 5 years any charitable contributions made during the current year that exceed the 10% limit. You lose any excess not used within that period. For example, if a corporation has a carryover of excess contributions paid in 2010 and it does not use all the excess on its return for 2011, it can carry any excess over to 2012, 2013, 2014, and 2015, if applicable. Any excess not used in 2015 is lost. Do not deduct a carryover of excess contributions in the carryover year until after you deduct contributions made in that year (subject to the 10% limit). You cannot deduct a carryover of excess contributions to the extent it increases a net operating loss carryover.
So even if the donation exceeds $486 million they can still include the excess for the next 5 following years. So no matter what they will get ALL of the money back.
Cash contributions. A corporation must maintain a record of any contribution of cash, check, or other monetary contribution, regardless of the amount. The record can be a bank record, receipt, letter, or other written communication from the donee indicating the name of the organization, the date of the contribution, and the amount of the contribution. Keep the record of the contribution with the other corporate records. Do not attach the records to the corporation's return. For more information on cash contributions, see Publication 526.
This is pretty self explanatory. Any investor should be able to get a copy of this document upon request.
Gifts of $250 or more. Generally, no deduction is allowed for any contribution of $250 or more unless the corporation gets a written acknowledgement from the donee organization. The acknowledgement should show the amount of cash contributed, a description of the property contributed, and either gives a description and a good faith estimate of the value of any goods or services provided in return for the contribution or states that no goods or services were provided in return for the contribution. The acknowledgement should be received by the due date (including extensions) of the return, or, if earlier, the date the return was filed. Keep the acknowledgement with other corporate records. Do not attach the acknowledgement to the return.
Again pretty self explanatory. Also, Charitable organizations have to make their financial records available to the public so a with simple written request we can get their record of donations and see how much they actually got in "donation" from ATVI.
All of this boils down to them using your money for a publicity stunt that costs them nothing. They'll write it off and actually gain more than if they had kept the money. Remember they will pocket any and all interest gained from that money before they make the "donation".
If they truly meant to "donate" they should've made an offer to match dollar per dollar out of their own pockets on top of the RMAH proceeds to charity.