You can collaborate with Lurabitat in several ways:

As an individual, you can contribute your knowledge, time and experience to collaborate with Lurabitat's projects and initiatives, as a volunteer or by providing advisory services.

As an association, institution or company, you can support Lurabitat through financial contributions, donations of goods or services, or by partnering in joint projects. You can also provide financial donations, in-kind contributions of products/services or other tangible and intangible resources to strengthen Lurabitat's work and enable it to fulfill its projects, aims and objectives.

By collaborating with Lurabitat in any way, you or your company can play a significant and fundamental role in creating a positive impact on people.

Any help is important and welcome. Join Lurabitat!

Tax incentives for patronage

These grants give greater visibility to collaborating companies, allowing them to advertise their donations in our foundation, in addition to obtaining important tax benefits.

Collaboration agreements

Collaboration agreements in foundations are written agreements between a foundation and a company or other entity, in which:

The company undertakes to provide financial aid to the foundation to carry out its activities of general interest.

In exchange, the foundation undertakes to publicly disseminate the company's participation and collaboration in these activities.

The main characteristics of these collaboration agreements are:

Target
Collaborate financially in the general interest activities of the foundation.

Financial assistance
Financial aid can be monetary, goods or provision of services. The foundation must allocate the aid entirely to its activities of general interest.

Diffusion
The foundation undertakes to publicly disseminate the company's participation and collaboration, but this dissemination does not constitute a provision of services.

For the company, the aid is considered a deductible expense in Corporate Tax.

Art 25.1 Law 49/2002: the dissemination of the collaborator's participation does not constitute a provision of services: operation not subject to VAT.

Advertising sponsorship agreements

The Foundation, in exchange for financial aid to carry out its activity, undertakes to collaborate in the sponsor's advertising. The position of the Foundation is more active by collaborating in the advertising of the sponsor, it is not limited to giving notoriety to the participation of the donor company in exchange for financial aid.

Advertising sponsorship contracts in a foundation in Spain are commercial agreements between a foundation and a company (or any other sponsoring entity) in which the foundation undertakes to promote the image, products or services of the sponsor in exchange for financial support, material or in kind. These contracts are beneficial for the sponsor, who improves their visibility and reputation by associating with social causes.

Characteristics of Advertising Sponsorship Contracts

1. Purpose of the Contract : They clearly establish the purpose of the sponsorship, which is usually the promotion and dissemination of the sponsor's image through the activities of the foundation.

2. Foundation Commitments : They detail the specific actions that the foundation will carry out to promote the sponsor, such as including its logo in advertising materials, mentioning the sponsor at events, and other forms of visibility.

3. Sponsor Contribution : They describe the type and amount of support provided by the sponsor, which may be financial, in kind, or a combination of both.

4. Duration of the Contract : They specify the period of validity of the agreement, with start and end dates.

5. Rights and Obligations : List the rights and obligations of both parties, including the correct use of brands and logos, confidentiality of information, and compliance with legal regulations.

6. Conflict Resolution Clauses : They define the procedures to resolve possible disputes between the parties.

7. Confidentiality and Intellectual Property : Regulate the use and protection of shared information and the results obtained.

Benefits of Advertising Sponsorship for the sponsor

- Corporate Social Responsibility (CSR) : Improve your public image and reputation by associating with charitable causes.

- Advertising : Gain visibility and promotion through the foundation's channels.

- Relationship Marketing : Strengthens relationships with clients and other interested parties by showing your social commitment.

Examples of Advertising Sponsorship

1. Events and Conferences : The foundation organizes events where the sponsor receives visibility through promotional materials, mentions in speeches, and brand presence.

2. Publications : The sponsor's logo and messages may appear in newsletters, annual reports and other foundation materials.

3. Awareness Campaigns : The sponsor can be mentioned in awareness campaigns carried out by the foundation, increasing its brand recognition.

Implementation process

1. Sponsorship Proposal : A detailed proposal is prepared that specifies the benefits and forms of visibility that the sponsor would receive.

3. Negotiation and Signing of the Contract : Both parties negotiate the terms and conditions of the agreement before signing the contract.

4. Execution and Monitoring : The agreed actions are implemented, and monitoring is carried out to ensure compliance with the terms of the contract.

In summary, advertising sponsorship contracts are a strategic tool for companies that provide sponsors with a platform to improve their image and meet their social responsibility objectives.

The tax treatment is the same as in contracts given the difficulty involved in differentiating between this and the sponsorship agreement: fiscally deductible expense in Corporate Tax.

The advertising expense produced by the sponsor's contribution in compliance with the sponsorship agreement is tax deductible, is considered related to the company's activity and has the purpose of obtaining income.

Where the sponsorship of the agreement differs is in VAT: Here, the operation is subject to VAT as it is configured as a provision of advertising services carried out by the Foundation in exchange for economic consideration.

Conclusions: In general, when the tax rate is sufficient, it will be more beneficial to make donations to the Foundation rather than collaboration agreements or sponsorship agreements. The reason: In the latter, only one deduction is allowed in the tax base, recovering 30% of the expense incurred. On the other hand, in the case of donations, the deduction in installments is 40% and up to 50% when they are habitual.

Despite the above, it is necessary to take into account the cases in which the limit of the base of the deduction for donations is applicable, established at 10% of the corporate income tax base. When this happens, the tax benefits applicable to the collaboration or sponsorship agreement will be more beneficial, provided there is a sufficient tax rate.

Donations

Donations can be monetary, property or rights.

Companies that make outright irrevocable donations and contributions in favor of foundations will have the right to apply a deduction in Corporate Tax.

For the company, the donation is a non-deductible expense, for this reason a positive tax adjustment must be made. The corporate tax deduction is 35-40% with a limit of 15% of the tax base.

- The constitution of a real right of usufruct over goods, rights or values, carried out without consideration

Donations given to the Foundation are delivered without any consideration: The operation is not subject to VAT.

- Specific temporary transfer of the use of movable and immovable property. For example a rental, machinery...

In-kind donations

- Delivery of new goods.

- Delivery of used or obsolete goods.

- Heritage donations.

- Artworks.

- New and used equipment and machinery.

- Donations in which the donor could receive reputational recognition:

• Provision of services and aid in kind.

Deduction of donations in personal tax

Donations made to foundations and entities covered by the patronage law bring with them tax deductions for donors, so they see how the amount that has actually come out of their pocket is much less than that which reaches Lurabitat.

Let's see in practice how these percentages on donations translate: what it costs the donor and what Lurabitat receives.

CASE 1: THE MICRODONATION. Donations of up to €250:

If a person donates, for example, 250 euros over a year, the 80% tax deduction will be applied to their donation. 80% of 250 is €200 that the donor deducts, so the donation is really costing them €50 while Lurabitat receives €250.

Amount donated : €250.

Tax relief (80%): €200.

How much does it cost the donor: €50.

How much receives Lurabitat: €250.

CASE 2: Amounts that, per year, add up to more than €250:

If a person donates €500, an 80% deduction is applied to the first €250 and from €250 onwards, that is, to the remaining €250 to reach €500, a 40% deduction is applied. So:

1.Of the first €250, 80% is €200 that the donor deducts.

2.Of the remaining €250 (500 -250), the 40% tax reduction is €100.

In total 200 + 100, €300 is deducted by the donor.

Amount donated: €500.

Tax reduction (80% and 40%): €300.

How much does it cost the donor: €150.

How much receives Lurabitat: €500.

CASE 3: LOYALTY. If in the two previous years the same amount or more has been donated, the recurring donors are rewarded, instead of 40% the rest are given 45%:

Amount donated: €500.

Tax reduction (80% and 45%): €312.50.

How much does it cost the donor: €187.50.

How much receives Lurabitat: €500.

Deduction and exemption of donations in corporate tax

Donations made to foundations and entities covered by the patronage law, such as Lurabitat, bring with them tax deductions for the donors, so they see how the amount that has actually come out of their pocket is much less than the amount they donate.

Let's see in practice how these percentages on donations translate: what it costs the donor and what Lurabitat foundation receives.

For taxpayers of Corporate, Tax deductions are 40% and 50% in case of loyalty. In this case we are not talking about two donation tranches. Furthermore, in these cases it is important to keep in mind that the base of this deduction may not exceed 15% of the tax base for the tax period.

CASE 1: Donation made by a taxpayer of Corporate Tax:

Tax base in Corporate Tax: 3,000,000 euros.
Donation amount: 300,000 euros.
Taking into account that the maximum limit of the deduction is 15% of the BI, the following remains:
Deduction for donations generated = 300,000 x 40% = 120,000 euros.
Maximum deduction to apply = 3,000,000 x 15% x 40% = 180,000 euros.
The remaining €60,000 to reach the €180,000 deduction remains 'pending' to be deducted and may be applied in the settlements of the tax periods that end in the immediate and subsequent 10 years.

Amount donated: €300,000.

Tax relief (40%): €120,000.

How much it costs the donor : €180,000.

How much Lurabitat receives : €300,000.

CASE 2: LOYALTY. Donation made by a taxpayer of Corporate Tax if in the two previous years the same amount or more has been donated:

It would be the same as in the previous case but applying the 50% deduction.

Amount donated: €300,000.

Tax relief (50%): €150,000.

How much does it cost the donor : €150,000.

How much Lurabitat receives : €300,000.

NOTE: Only for residents of the Basque Country and Navarra there are differences to take into account when applying deductions for donations:

In the provincial treasury of BIZKAIA: 30% of your donation may be deducted. The base of the deduction may not exceed 35% of the taxable base of this tax.

Companies: 30% of your donation may be deducted from the liquid quota. The deduction may not exceed 35% of the net amount.

In the provincial treasury of NAVARRA: The deduction will be 25% of the donations made.

For projects that meet the requirements set by the Foral Law 8/2014, of May 16, on Cultural Patronage and its tax incentives in the Foral Community of Navarra, the deduction will be 80% for the first 150 euros and 40 % for what exceeds 150 euros.

This deduction has a joint limit with the deduction for union dues, with the deduction for dues and contributions to political parties and with the deduction for investments in renewable energy installations, in electric or plug-in hybrid vehicles and in charging systems of 25% of the taxable base of the tax.

Companies: Deduction as an expense in the tax base with a limit of 10% of the tax base or 1×1000 of income.

In the provincial estates of ARABA and GIPUZKOA: 20% of your donation may be deducted. The base of the deduction may not exceed 30% of the taxable base of this tax.

Companies: The amount of the donations must be equal to the deductible expense in the tax base

NOTE: Due to legal reasons, all the information contained in this page is only a reference. The only valid information is that of the web in Spanish