I work for a retailer and have been loosely involved in a project like that a few years ago.
Basically, it felt like it was mostly a very inexpensive way for the company to get everyone involved feel good about themselves. The free advertising was definitely an argument to get the higher-ups on board, but my impression was that it was kinda secondary compared to the kinda fake good conscience it gave everyone.
There was definitely no tax breaks for that initiative though, so at least in my country that is indeed a myth
EDIT: You also get to say in your annual report to the shareholders that the company helped raise x millions euros to charities at no cos, which in turn makes them feel good about themselves without impacting their profits.
I work for a retailer and have been loosely involved in a project like that a few years ago.
Basically, it felt like it was mostly a very inexpensive way for the company to get everyone involved feel good about themselves. The free advertising was definitely an argument to get the higher-ups on board, but my impression was that it was kinda secondary compared to the kinda fake good conscience it gave everyone.
There was definitely no tax breaks for that initiative though, so at least in my country that is indeed a myth
EDIT: You also get to say in your annual report to the shareholders that the company helped raise x millions euros to charities at no cos, which in turn makes them feel good about themselves without impacting their profits.