How does sponsorship benefit a company?

If you sponsor an event, you should know that you have the possibility to benefit from tax breaks! Indeed, up to 60% of the donation fees can be deducted from taxable income, and that's not all, you can also reclaim the value added tax bill issued by the sponsor.

Improving your image and acquiring new customers

Sponsorship allows the sponsor to promote its brand and is part of the advertising campaign. Sponsorship involves the company's internal and external communication. Internally, it is about proposing actions to employees to enhance payroll cohesion. Externally, sponsors can act in accordance with their own image, improve their reputation and demonstrate the quality of their services or products. The main objective is to develop relationships between customers, suppliers or service providers. Sponsorship also aims to help a company acquire new customers by promoting its products and services to new targets

Proposing your services or products

Becoming a sponsor allows you to sell your products or services at sponsored events such as parties, business conferences or trade fairs. This is another way of acquiring new customers and increasing turnover from time to time. Sponsorship also allows companies to demonstrate the quality of their products such as the technical performances of household appliances or high-tech production tools used to make films.

Benefit from media coverage of the sponsoring action

Sponsoring cultural, scientific or sporting events also allows companies to benefit from media coverage. In other words, it is a cheaper way to promote your company's name without the usually much more expensive advertising expenses. Companies that decide to sponsor individuals, events or actions can also benefit from tax breaks. The sponsoring company’s participation should also be clearly identified, for example by means of a logo. To benefit from these tax cuts, the expenses incurred must be directly linked to the development of the company.

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