Integrating patronage into the company's strategy: the icing on the cake
Posted: Sat Dec 21, 2024 4:58 am
Corporate sponsorship is a tax system that allows companies to make donations to organizations of general interest. In France, sponsorship is also a strategic opportunity for companies. Giving to win… How is it possible? We explain it to you in summary here, as a guest of the MMIO blog, and in detail in our Guide to Corporate Sponsorship on SOESS . But before we begin, let's say it right away, integrating sponsorship into the company's strategy is just the icing on the cake.
Indeed, you still need to have a business strategy that allows you to generate profits... Give to earn more, then. This is possible by combining all the benefits that a company can get from patronage by america cell phone number list integrating it into its overall strategy.
To do this, you have to put into the equation all the ingredients that make up the life of the company: taxation, human resources management, a touch of logistics and a good dose of anthropology (in other words reputational and relational issues).
The generous taxation of corporate sponsorship in France
“Generous taxation”... Is this provocation?
A little, but in terms of patronage, it is not us who say it, it is the Court of Auditors in its report Public support for corporate patronage.
The tax regime for corporate sponsorship in France is one of the most generous in the world. Let’s see why.
1.1. Corporate tax reduction for patronage
When I give 100 and it only costs me 40, I earn a little, right? Article 238 bis of the General Tax Code allows companies to benefit from a tax reduction of 60% of the amount of their donations, up to 0.5% of their turnover.
For example, a company with a turnover of 10 million euros can donate 50,000 euros and get a tax reduction of 30,000 euros. It then only costs 20,000.
To make patronage accessible to small and medium-sized enterprises, a tax deductible of 20,000 euros has been introduced. Thus, regardless of its turnover, an SME can donate up to 20,000 euros and benefit from a tax reduction of 60% of the amount of the donation.
For donations exceeding 2 million euros (if you are in this case, call me) the tax reduction is 40% instead of 60%. However, for donations to organizations helping people in difficulty ( Coluche law ), the rate of 60% is maintained.
Indeed, you still need to have a business strategy that allows you to generate profits... Give to earn more, then. This is possible by combining all the benefits that a company can get from patronage by america cell phone number list integrating it into its overall strategy.
To do this, you have to put into the equation all the ingredients that make up the life of the company: taxation, human resources management, a touch of logistics and a good dose of anthropology (in other words reputational and relational issues).
The generous taxation of corporate sponsorship in France
“Generous taxation”... Is this provocation?
A little, but in terms of patronage, it is not us who say it, it is the Court of Auditors in its report Public support for corporate patronage.
The tax regime for corporate sponsorship in France is one of the most generous in the world. Let’s see why.
1.1. Corporate tax reduction for patronage
When I give 100 and it only costs me 40, I earn a little, right? Article 238 bis of the General Tax Code allows companies to benefit from a tax reduction of 60% of the amount of their donations, up to 0.5% of their turnover.
For example, a company with a turnover of 10 million euros can donate 50,000 euros and get a tax reduction of 30,000 euros. It then only costs 20,000.
To make patronage accessible to small and medium-sized enterprises, a tax deductible of 20,000 euros has been introduced. Thus, regardless of its turnover, an SME can donate up to 20,000 euros and benefit from a tax reduction of 60% of the amount of the donation.
For donations exceeding 2 million euros (if you are in this case, call me) the tax reduction is 40% instead of 60%. However, for donations to organizations helping people in difficulty ( Coluche law ), the rate of 60% is maintained.