Given the teaching on kamma, how can your merit go to somebody else? The answer is that they have to appreciate it. That appreciation is a meritorious act on their part.

"When you’re meditating here, you’re making merit and you can share it. The act of sharing is a meritorious act in and of itself. You might say that it gives you compound interest on top of the good you’ve done. And the question, of course, is: Given the teaching on kamma, how can your merit go to somebody else? The answer is that they have to appreciate it. That appreciation is a meritorious act on their part. They have to be in a position where they can receive it and then feel some appreciation for the goodness you’ve sent in their direction. That becomes their good kamma."

~ Thanissaro Bhikkhu "Dedicating Merit" (Meditations8)

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