Corporate giving can be a useful source of income for third sector organisations, big and small.  Its value reaches beyond immediate financial benefits, enabling you to raise the profile of your cause and develop relationships for the future. 

Corporate support can take many different forms including:

  • Corporate donations
  • Corporate partnerships including Charity of the Year
  • Sponsorship
  • Business advertising
  • Employee volunteering and secondments
  • Payroll Giving
  • Gifts in kind

Corporate giving is not a one-way relationship, companies generally expect something back in return for their support.  But don't let that put you off because with persistence and hard work you can develop mutually beneficial, long-lasting, fruitful relationships with companies in Wales.

Corporate donations

  • Gifts of cash are the most obvious but also the most expensive way for businesses to offer support
  • Larger businesses, such as Legal and General, create Trusts, which have specific aims to support local causes
  • Charitable gifts and Trusts are tax deductible
  • Under the Gift Aid scheme for companies, businesses can make charitable gifts and subsequently deduct the value of the charitable donation from pre-tax profit calculations at end of year. For more information on this see the HMRC website.

Sponsorship

  • Sponsorship is a business arrangement between a company and a charity
  • Sponsorship does not have to be money alone, other forms can include goods (such as a car), services e.g. free transport, free promotion, discounts on services or purchases

The sponsorship agreement will include a company benefit of some kind, examples of benefits are:

  • Improved image through association with the cause
  • Free promotion of products, product placement in association with the cause
  • A view to entertain (potential) customers
  • Joint promotions (cause related marketing); charities become involved in promotional activity to help market a commercial product e.g. British Gas/ Help the Aged campaign

Business advertising

  • Charities can attract a significant amount of attention through media coverage and events
  • Businesses can show good will and support for the various causes
  • Opportunities include commercial advertising to reach a target audience (e.g. 'front of house' advertising, advertising in an Annual Report, advertising in conference programmes or at fundraising events).
  • Payment for advertising is not the same as a donation for tax purposes; the receiving charity may be liable for VAT as advertising is considered a business agreement

Employee volunteering and secondments

Staff time can be offered for charitable benefit through:

  • Employee volunteering - which is an opportunity to increase employee skills and community involvement
  • Professional skills - such as law firms, accountants, advertising or public relations firms, these related skills can be offered free of charge
  • Secondments - helps staff develop skills in a new setting for a designated period, especially appropriate for developing middle management

Gifts in kind

  • It is often easier and more affordable for companies to give 'things' rather than money, such as; products, items for raffles, old stock for resale or auction, pro bono technical advice or free or reduced cost use of facilities, for meetings and functions
  • Items which are produced for trading, or items used in the production of trading goods (e.g. computers/ furniture) can be tax deductible under the corporate Gift Aid scheme if given to charity. Full tax relief is also available on items with no 'book value' such as end of line stock or damaged stock