Sponsor, donation or obtain a tax deduction

Membership’s tax deductibility and sponsorship fees

Sponsoring SVI

Sponsorship is a technique whereby a sponsor aids a natural or legal person for the organization of a philanthropic, educational, sporting, or cultural event or demonstration, in exchange for “publicity”, the precise terms of which are often laid down in a written contract.

It’s a communication and advertising tool whose the use has grown considerably in the last years (some of today’s best-known and most talked-about events owe their existence to it), and which aims to associate a company (the sponsor) and/or its brands and products with an event or manifestation (the sponsorship support). It is an exchange for consideration between a “contest” (payment of a sum of money, delivery of goods, provision of services, etc.) and an advertising service provided by a sponsor, who expects positive effects on its sales, if possible, in proportion to its investment.

So, sponsorship can be defined as a contract by which the sponsor commits itself to provide the beneficiary with material assistance (in the form of products and services) or to pay a certain sum to the beneficiary on the occasion of an activity during which the “sponsor” may advertise in specified spaces and for specified periods. The company considers the expenses spent as work-related expenses (100% deductible), as long as the sponsored activities are related to those of the company.

The financial administrator can not rule on the usefulness and appropriateness of work-related expenses (the principle of non-interference). As a result, the deductibility of work-related expenses must be authorized as soon as it is established that these expenses present a necessary link with the business activity. In other words, the expenses incurred must be for the purpose of acquiring or retaining professional income and must not unreasonably exceed the needs of the sponsor. For instance, advertising in return for financial support must be perceptible.

Example of sponsor:

-printing of posters, T-shirts, or booklet with your company logo;

-support for the creation of an event.

Companies wishing to support SVI financially can do so by sponsoring us and deduct this work-related expense from their taxes. If you would like to sponsor our association, please contact us.

Membership fees’ tax deductibility

The law on tax certificates forbids us from issuing tax certificates for our members’ subscriptions. Membership fees are not considered as donations. As a consequence, they are nondeductible.