At least in the US I’m pretty sure this has very poor tax treatment. The company match portion would be taxable to the employee while also not qualifying for the charitable tax deduction. The idea is they can offer a consistent match as policy, but if they’re offering a higher match for a specific employee that’s taxable compensation. And the employee can only deduct contributions they make, which this isn’t quite.
Companies often hesitate to grant individual raises due to potential ripple effects:
The true cost of a raise may exceed the individual amount if it:
Necessitates adjustments to other salaries via organizational policies
Sets precedents for other employees
Sparks salary discussions among colleagues
An alternative for altruistic employees: Negotiate for charitable donation matches
Generally less desirable for most employees
Similarly attractive to altruists (Assumption: Current donations to eligible charities exceed the proposed raise)
This approach allows altruists to increase their impact without triggering company-wide salary adjustments.
(About 85% confident, not a tax professional)
At least in the US I’m pretty sure this has very poor tax treatment. The company match portion would be taxable to the employee while also not qualifying for the charitable tax deduction. The idea is they can offer a consistent match as policy, but if they’re offering a higher match for a specific employee that’s taxable compensation. And the employee can only deduct contributions they make, which this isn’t quite.