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Sponsorship and patronage

Collaborate with the University of Girona

Through sponsorship and patronage, companies, institutions and citizens have the opportunity to collaborate with the University of Girona, safe in the knowledge that these contributions will be recognised publicly by the University, at the same time as the companies obtain the financial and tax benefits established by the law deriving therefrom.

The UdG offers four ways to contribute to achieving projects, each of them with different tax implications. These four categories are: 

  • Sponsorship 
    Financial support that aims to fully or partially fund a University activity, product or service. The sponsoring organisation expects to obtain notoriety and advertising benefits as a result of linking the company's image to the University's image, or as a result of communication with specific public objectives within the university field.Given that money is involved, the sponsorship agreement is considered to be a service contract between the sponsored party and the sponsor, through the use of a brand. The aim of the contract is commercial publicity with the commitment that the sponsor receive a non-financial return, generally in the field of image and communication, associated with the sponsored activity or entity. It is essential that the sponsored activity not be related with the company's area of activity so that it cannot be considered a sales promotion.
  • Business collaboration 
    Similar to sponsorship, but it differs in that the collaboration consists of contributing to performing an activity through the provision of products, materials or equipment, providing a service freely or facilitating the use of equipment, and not through a financial contribution. Another big difference is that the donor cannot publicise that they are a collaborator, but the University is the one that undertakes to share the collaborator's participation in the activity in writing by any means. Dissemination of information about the collaboration does not therefore constitute strictly a service provision. Its intention is more related to social responsibility.
  • Patronage 
    Support given to a person, an organisation or an action of general interest, without receiving any fee nor making communication. A patronage contract aims at contribution of money or in kind for the funding of a university product or service, without expecting any direct fee in return. Its intention is philanthropic. 
  • Donation 
    This method shares the basic features of patronage regarding the absence of fees as well as the philanthropic intention of the event, but the provision is made in the form of property or estate assets.

The university has a catalogue of activities, projects and measures that may be funded through sponsorship, collaboration or patronage. As an indication, they can be classified into the following types:

  • Institutional or strategic projects: contributions for infrastructure, for scientific and technical equipment, renovation of iconic spaces, etc.
  • Projects in the field of teaching, research, promotion of innovation and entrepreneurship: company chairs, technological innovation programmes, distinctions in publishing scientific or entrepreneurial activity, etc.
  • Training and education projects: study scholarships, mobility grants, prizes for dissertations, conferences and congresses, graduation events, etc.
  • Social action projects: cooperation for development, voluntary workers, equality of opportunities, etc.

Sponsorship is formalised through a contract with no commercial character, which must be related to the company business and the purpose of which is to obtain income. The expense made is deductible from the Corporation Tax taxable income. It is an activity subject to VAT, fully deductible except in special cases.

Regarding a business collaboration in activities of general interest, formalisation is through an agreement. The not-for-profit commitment to the entity disseminating the collaborator's participation does not constitute a rendering of services subject to VAT (Resolution of the Treasury and Financial Policy Department of 9 March 1999). Any amounts paid or expenses made are considered deductible expenses in determining corporation tax taxable income for the collaborator entity, and no deduction to the amount is applied.

Patronage can be formalised through an agreement, where appropriate, but is not strictly necessary.

Law 49/2002 of 23 December on the Tax Regime of not-for-profit fiscal entities and fiscal incentives to patronage sets out that fiscal benefits are applicable to contributions, donations and provisions that are made, among others, in favour of public universities, and give the right to a deduction.

For donations for legal persons, passive subjects of corporation tax have the right to deduct from their full quota 35% of the base of the deduction, reduced in allowances, double taxation deductions and deductions to encourage certain activities. In order for donations or contributions to give the right to the corresponding deductions, they must be made to entities that are treated as patronage beneficiaries under the law and must be irrevocable, pure and simple. To have the right to these deductions, the effectiveness of the donation has to be proved through a certification issued by the beneficiary entity.

Publication of Law 27/2014 of 27 November on Corporation Tax introduces the possibility of increasing this percentage to 40% (with effect from 1 January 2015), only when donations have been made to the same entity in the last two tax periods for an amount equal to or greater than each of them with regard to the previous year (temporarily, 37.5% in 2015).

The 18th Additional Provision of Organic Law 04/2007 on universities also allows an additional 5% increase in the percentage of deduction to be made. These donations must be for university research and doctoral degree programmes.

If we are talking about physical persons, they can deduct from the full IRPF quota 75% of the donation if it is less than or equal to €150, and 30% if it is more than €150 (if there are donations to the same entity in two previous years for the same amount or above each year, from €150, a deduction of 35% can be made).

If you are interested in sponsorship, collaboration or patronage, please get in touch with the Composites Campus, Isabel Bagudanch (Tel. +34 972 41 95 78) and we will give you more information.