It is probably the most classic form of sponsorship

Time when patronage was the preserve of large companies are now gone. Indeed, for many years, it is not uncommon to encounter small structures that invest in the associative world. Sponsorship development including was facilitated by the strengthening of the existing tax benefits for companies patrons. Indeed, these can benefit from a reduction of tax on profits of 60 of the amount of the donations they make to eligible organizations, in the limit however to a maximum of 5 per cent of their turnover excluding tax. And when made donations exceed this ceiling, the surplus may be successively carried on the next five years and gives entitlement to the tax reduction under the same conditions, after taking account of the payments for the year. Note: for companies subject to the income tax, this tax reduction is imputed tax due to the title of the year of payment, regardless of the date of close of the fiscal year. In companies subject to corporate income tax, it charges on the balance of the tax due to the title of the year in which payments are made. For a business, becoming a patron is however an original approach which should not be adopted lightly. Indeed, the sponsorship is part of a strict framework which must absolutely be respected. And above all, it is a commitment which must always be based on the will first give, even if, in fact, the collaboration with the organization helped can be rewarding for the company. What is sponsorship Or rather that is not sponsorship It should be in fact distinguish sponsorship or sponsorship, patronage made both in the direct interest of the operation. Through sponsorship, the company carries out expenditure to promote its brand image. It is therefore a commercial approach including the spin-off is quantifiable and proportional to the initial investment. Sponsorship or sponsorship expenses are deductible from taxable results of companies which commit them, but open not entitled to the reduction in patronage. So there are sponsorship, there is instead a "donation", don also should not be granted to anyone Who can be benefit To open right to the tax benefits of sponsorship, donations must be made for limited designated organizations. It organizations of general interest having a character philanthropic, educational, scientific, social, humanitarian, sport, family, cultural or competing in the development of the artistic heritage, to the defence of the natural environment or the dissemination of culture, language and science French. May also be beneficiaries of donation foundations or associations recognized public utility, the museums of France, the institutions of higher education or arts education, companies or organizations public or private scientific and technical research, or public or private bodies whose management is disinterested and which have as main activity the Organization of festivals whose purpose is the presentation of dramatic workslyrical, musical, choreographic, cinema and circus, provided that the donations are allocated to this activity. Note: the amending 2007 budget law expands the profit tax from business donations made to public bodies or private companies whose capital is fully owned by legal persons of public law (State, national public institutions, local communities) with main activity the Organization of exhibitions of contemporary art or the presentation of live shows or disinterested management. Donations may also be a corporate foundation as a beneficiary even if the latter is the name of the company founder. More generally, the nature of sponsorship is not questioned by the mere fact that the donor company name appear in operations performed by the recipient organizations. The insertion of the logo of the sponsor is therefore permitted on condition that it is discrete and excluding any advertising message. In practice: the cultural sector is today still one who benefits most from business. However, there is a certain development in the field: next to the traditional sports sponsorship, develops more and more sports sponsorship (22 of the patrons invest in sport, especially for associations whose purpose is the practice of sport by disabled people). But the sectors education, integration and assistance to persons in difficulty, solidarity (national and international), or sustainable development may also be subject to sponsorship operations. Good to know: whether they are eligible for sponsorship, recipients of donations, may in a Rescript procedure, examine the tax administration which has a "correspondent association" in each Department. It then checks in function of the elements that the association provides, including the activity is non-lucrative, it does not benefit a tiny circle of people and that the management is disinterested. What sponsorship can take The patron may first make cash donations. It is probably the most classic form of sponsorship. It can also be donations in kind or put at disposal of premises. Most original, but more and more common, the gifts of jurisdiction. Through this, the company offers the association time by one or more employees in the sponsorship program. It is available one or more of its employees to perform on their working time of the shares in the recipient organization. In this case, for the calculation of the tax reduction, the effort of the company must be valued at the cost of the offered service. Any interest in the company Tax interest must obviously never be the only motivation of the company. Sponsorship must be in the first place a means for the company to assert its values and put his skills at the service of general interest, otherwise communicate, and, therefore, to establish or improve its image with its customers, partners, employees and the general public. Get involved in an action of corporate philanthropy, the company must therefore reflect on its own values and their compatibility with the sustained action. Sponsorship is also a good way to help the development (cultural, environnemental) of the territory on which the company is with more or less direct benefits resulting therefrom: the attractiveness of the business development, retention of employees... Finally, sponsorship operations can be great ways to strengthen internal cohesion (team spirit) of the company. How to carry out an operation of sponsorship Rest that to succeed, patronage operation must always be based on human relations, in particular on the mutual respect of each structures, relationships which can weave to wire meetings and visits organised the supported organization and whose purpose is to measure concrete actions that it performs. If sponsorship contributions are undeniable, so one should not lose sight that will need to spend some time to put in place! In practice to establish clearly the commitments and obligations of each of the parties (patron and recipient), it is essential to sign, prior to any operation, a sponsorship agreement. In this regard, the Ministry of Culture and Communication proposes a model type, available on its Web site