Sponsorship for fundraising calendars

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A great way to increase the amount of money you can make from your fundraising calendars is to get local businesses to sponsor a month or indeed the entire calendar. And did you know that providing the business adheres to the following, any sponsorship is a deductible expense.

 

Does the sponsorship…

  • …Promote the business?
  • …Is the purpose ‘wholly and exclusively’ business related
  • …Is the benefit of the sponsorship ‘wholly and exclusively’ business related

If it meets these conditions it may be a legitimate expense, so which costs relating to sponsorship can be claimed as an expense? Items you can claim for (both in your VAT returns and end of year tax returns) include costs such as:

  • Entry/ membership fees – providing your company is benefiting from paying the fee
  • Items which have the company branding on them*
  • Facility expenses directly related to the party being sponsored – these should be outside of normal business activity

*so any business that includes its logo on a calendar to sponsor the calendar can legitimately offset the cost against tax