What is patronage?
Sponsorship is defined as “material support provided, without direct compensation from the recipient, to a work or person for activities of general interest” 1
It differs from sponsorship (or sponsorship) defined as “material support to an event, person, product or organization for direct benefit” 2
Giving can take many forms:
- the financial sponsorship, the most common is where the donor pays money to the recipient
e.g. €1,000 support granted to a theatre company - the skills sponsorship provides free staff of the enterprise to the beneficiary organization
e.g. provision of a computer scientist for create the website of an orchestra - the product sponsorship is a gratuitous offering of capital goods or goods in stock
e.g. provision of space for the benefit of of an association of plastic surgeons - the technology sponsorship The aim is to provide the beneficiary with a clean technology for the sponsoring company.
If the beneficiary is eligible for deductible patronage, the donation entitles donors (companies and individuals) to certain counterparties, including tax advantages, both for companies that the individuals.
1Order of 6 January 1989 on economic and financial terminology
2Ditto