Charity sponsorship payments are different from donations because your company gets something related to the business in return. You can deduct sponsorship payments from your business profits before you pay tax by treating them as business expenses.
Corporate sponsorship allows both parties to enhance the authority, credibility and authenticity of what they are both saying. Businesses and charities can achieve more by working together to address social and environmental issues than by working alone. A strong, ongoing partnership also has the power to make a sustainable, long term impact.
When a business donates to worthy causes, its image is often enhanced in the public’s perception. Ensuring a comprehensive CSR policy is in place and embedded at the heart of a business can not only enable companies to make a genuine difference to society, but also deliver a tangible benefit to the firm. Businesses worried about the cost of implementing this should recognise how it can deliver true win-wins, engaging and improving brand reputation among external and internal stakeholders, contributing to the development of employees and ensuring they are proud of the company they work for and motivated to perform at their best.
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