Definition of the sponsorship*
The definition approved by decree is: “material support without direct from the beneficiary for a work or a person to the pursuit of general interest.”
The condition of interest is satisfied when the recipient of the gift does not work in favor of a restricted circle of persons, been a disinterested management and has no lucrative activities, within the meaning of Article 206-10 of the General Tax Code.
In this sense, the distinguished patronage of sponsorship by the fact that there is no contractual counterparties in support of the sponsor, who can not live in a profit.
Various forms of patronage
- Various forms of patronage
Financial sponsorship : For businesses, like individuals, it is an unconditional gift in the form of a cash payment.
- Sponsorship in kind :
It is a donation of goods or services priduces from a company. The amount of the donation is valued at cost price of the good or service.
- Sponsorship of competence :
It is for a company to provide a body of general interest one or more employees to achieve a mission within the scope of the corporate purpose of the organization.
The tax system of patronage applied Endowment
Established in 2008, the endowment can raise funds and make them work to develop and finance projects of general interest.
The endowment benefit, such as foundations, the tax regime applicable to non-profit organizations.
– Donations from business :
60% reduction in the corporate tax to a maximum of 0.5% of turnover excluding tax.
– Donation temporary usufruct
It is a dismemberment of ownership of property in which the owner transfers the property to a third of the usufruct for a term.
In this case, the income of the usufruct are not taxable to the bare owner. It also has the possibility of leaving the tax base for the solidarity tax on capital value of the property which he gave the usufruct.
To qualify for this scheme, five conditions must be met :
- The gift of usufruct must be made by deed
- The grant recipient must be a body of general interest
- The gift of usufruct must be made for uen minimum of three years
- The gift must be accompanied by an enhancement of the usufruct and a forecast of revenue collection
- The usufructuary shall receive the full fruits generated during the usufruct
* • This presentation is not a purpose of general interest. For more information on the tax treatment of patronage: http://www.budget.gouv.fr