Introduction: In a world where corporate social responsibility (CSR) is taking on a predominant role, corporate philanthropy stands out as a powerful lever for organizations looking to combine economic performance with positive social impact. Beyond the enhancing image it confers, philanthropy offers significant tax benefits, while strengthening ties with local communities and stakeholders.
What is corporate philanthropy? Corporate philanthropy involves a company providing material or financial support to a cause or organization of general interest, without expecting direct compensation. This support can take various forms:
- Financial donations: cash transfers to associations, foundations, or recognized public utility organizations.
- In-kind donations: provision of goods, equipment, or services.
- Skills-based sponsorship: mobilization of the company's internal skills for a cause.
Tax benefits associated with corporate philanthropy: In France, corporate philanthropy is encouraged by attractive tax incentives. According to Article 238 bis of the French General Tax Code, companies can benefit from a tax reduction equal to 60% of the amount of donations made, up to a limit of €20,000 or 0.5% of the annual pre-tax turnover, whichever is higher. For donations exceeding two million euros, the tax reduction rate is 40% for the excess amount.
Positive impacts for the company: Beyond tax benefits, corporate philanthropy offers several advantages:
- Brand image enhancement: by associating with noble causes, the company improves its reputation and visibility.
- Internal mobilization: philanthropic actions unite employees around shared values and strengthen the sense of belonging.
- Access to new networks: corporate philanthropy enables connections with other committed actors, paving the way for strategic partnerships.
How to implement an effective corporate philanthropy strategy? To optimize the benefits of philanthropy, it is essential to:
- Define clear objectives: identify causes aligned with the company's values and mission.
- Select relevant partners: choose reputable organizations recognized for their transparency and impact.
- Communicate about the actions taken: promote the initiatives to internal and external stakeholders.
- Evaluate the outcomes: measure the impact of philanthropic actions to adjust the strategy if necessary.
Conclusion: Corporate philanthropy is a virtuous approach that combines social engagement and economic benefits. By supporting causes of general interest, companies actively contribute to the development of society while strengthening their positioning and appeal. It is a long-term investment, beneficial for both the company and the community.