Philantropy

Philanthropy refers to the support provided, without direct compensation, by a company, association, public authority or individual to an activity of general interest. In France, this system is governed by the Aillagon Act of 2003, which marked a turning point by facilitating and promoting corporate sponsorship initiatives. In concrete terms, sponsorship consists of providing financial, material or human resources to support a cultural, social, environmental, educational or sporting project.

All organisations can participate in patronage: from large listed companies to SMEs (small and medium-sized enterprises) and VSEs (very small enterprises), as well as associations, foundations and public authorities. Patronage is recognised as a lever for collective engagement that strengthens the links between economic actors and civil society.

What is the difference between sponsorship and donation?

Sponsorship and donations share a common goal: to support a cause of general interest. But they are different. 

Donations are gestures of solidarity made by individuals or legal entities without any expectation of anything in return. They are often associated with a spontaneous act of generosity. The same is true of sponsorship, except that the organisation or private sponsor chooses to support a project or structure over the long term. 

Donations are individual and one-off, while sponsorship is part of a collective and sustainable strategy. 

What is the difference between patronage and sponsorship?

Philanthropy is based on the principle of selflessness: the organisation supports a cause of general interest without expecting any commercial return. The only recognised benefits are fiscal (tax reduction) and symbolic (promotion of social commitment). 

Sponsorship, on the other hand, is an advertising activity. The company supports an event, a team or an organisation in exchange for visibility and a direct impact on its brand image, sales or reputation. In this case, the expenses are considered deductible from its taxable income. 

Philanthropy is an approach based on public interest and social responsibility, while sponsorship is part of a communication and marketing strategy. 

What are the different forms of patronage? 

The Aillagon Law (2003) recognises several forms of patronage, which allow each organisation to commit according to its means and priorities. 

Financial or cash patronage 

Financial sponsorship, also known as cash sponsorship, is the most common form. The sponsoring organisation pays a sum of money to an association, foundation or institution recognised as being of public utility. This type of sponsorship is simple to implement, as it only requires a direct payment to the beneficiary, and flexible, as the supported organisation is free to allocate the funds to its projects, in accordance with its social purpose. 

The Bouge ton CoQ citizen movement is fighting against commercial desertification in villages with fewer than 3,500 inhabitants. With the support of the Upcoop Foundation, it is helping to set up participatory grocery stores where residents collectively manage the business. The aim is to open 600 grocery stores within three years to guarantee access to local food, recreate social ties and revitalise rural areas through a solidarity-based and sustainable economic model. 

In-kind sponsorship 

Sponsorship in kind is based on the donation of material goods or real estate, but also on the provision of services. This may include, for example, communication, printing, room hire, delivery or IT equipment. A company may also offer unsold products, surplus stock or any available material resources. 

This form of sponsorship is useful for associations that need equipment or access to technical resources without incurring additional expenses. 

Skills sponsorship 

Skills sponsorship involves a company making the expertise or working time of its employees available to a public interest organisation. In practical terms, this can take the form of consulting, training, project management or technical support. For example, a company may offer to have a project management expert assist a foundation in setting up a local initiative. 

The benefit is twofold: the organisation receiving assistance benefits from a transfer of skills that it would not have been able to finance on its own. The sponsoring company promotes the commitment of its employees, while enriching its CSR (Corporate Social Responsibility) policy and contributing to their fulfilment at work. 

Why engage in corporate sponsorship?

Sponsorship is a strategic choice that transforms the organisations and people involved. It creates a balance between social utility, economic impact and collective momentum.

Giving meaning to your business and motivating your employees

Sponsorship allows organisations to go beyond their purely economic mission. By contributing to social, cultural, educational or environmental projects, they give a human dimension to their activities. For employees, it is a source of pride and motivation. Participating in a sponsorship initiative fosters collective commitment and promotes fulfilment at work. According to the Barometer of Citizen and Solidarity Engagement, more than three-quarters of committed French people believe that community involvement is necessary to improve cohesion.

Strengthening CSR

Sponsorship is a powerful lever for enriching a CSR policy. This commitment translates into visible and measurable actions in support of social, environmental or cultural causes. For companies, integrating sponsorship into their CSR approach also means demonstrating that they fully embrace their role as responsible economic actors, in direct line with society's expectations. Philanthropy thus contributes to: 

• Making CSR strategy tangible through concrete projects.
• Creating shared value with local communities, associations and beneficiaries.
• Aligning internal practices with the values communicated to employees, customers and partners. 

Enjoying tax benefits 

Corporate sponsorship entitles you to tax benefits. The law provides for a corporation tax reduction equal to 60% of the amount donated, up to a limit of €2 million in annual donations. Above this threshold, the reduction remains possible but is limited to 40% of the amounts paid. In addition, the total amount of donations eligible for tax relief is capped at €20,000 or 0.5% of the company's annual turnover excluding tax, whichever is more advantageous. 

Forging inspiring partnerships 

Sponsorship is part of a collective dynamic. By working alongside associations, foundations, cultural institutions and social and solidarity economy actors, companies develop new synergies that go beyond the simple framework of their activity. These partnerships make it possible to: 

• Share skills: for example, by providing expertise in communication, management and IT to enhance the effectiveness of associations.
• Create local value: by supporting initiatives rooted in local areas, companies consolidate their ties with communities and strengthen their legitimacy.
• Stimulate innovation: bringing together different worlds – businesses, associations, public actors – encourages the emergence of new ideas and original solutions to social and environmental challenges. 

By establishing such partnerships, a company demonstrates its ability to work hand in hand with its ecosystem and actively contribute to projects that benefit society as a whole. 

In Brazil, the Amigos Do Bem association has been working since 1993 to improve the lives of people in the Sertão Nordestino region. Supported by the Upcoop Foundation, it carries out food security initiatives (distributing meal baskets), develops solidarity jobs and invests in education through its "cities of good". With the support of 10,000 volunteers, the association combines humanitarian aid, local infrastructure and income-generating projects to offer a more dignified and sustainable future to thousands of vulnerable families. 

Taking care of your company's image 

By supporting cultural, educational, environmental or solidarity projects, a company demonstrates that it is not limited to a profit-driven approach, but actively contributes to the common good. This approach strengthens its reputation among its customers, partners and employees, and sets it apart from its competitors. Sponsorship is also an investment in its relationship with its stakeholders, which translates into a stronger image, greater attractiveness and greater loyalty among customers and employees. 

The sectors most supported by sponsorship in France 

Philanthropy covers a variety of sectors, but which ones attract the most attention from philanthropists in France? 

Sport 

According to the 2024 Corporate Sponsorship Barometer, sport is by far the leading area of sponsorship activity, accounting for nearly 40% of the overall budget. The major international sporting events organised in France in 2024 have further accentuated this trend, with companies heavily involved in financing sporting events and local infrastructure. 

Culture  

Culture ranks second, with around 17% of the sponsorship budget. Music remains the most supported area, followed by the visual arts, theatre and heritage conservation. Cultural sponsorship not only helps to preserve and promote heritage, but also encourages access to artistic creation for as many people as possible. 

Social and health 

With 21% of the total volume of sponsorship, the social and health sector also benefits from a strong commitment. Companies support initiatives promoting access to healthcare, the inclusion of people with disabilities, medical research and assistance for the most disadvantaged. 

Beyond these three major areas, other sectors are attracting growing support: education and research, the environment and ecological transition, international solidarity and development aid, food, etc. Large companies tend to diversify their sponsorship activities to maximise their societal impact. 

Over 100 sponsorship projects supported by the Upcoop Foundation 

Since 2017, the Upcoop Foundation has supported, monitored and evaluated around 100 sponsorship projects in France and abroad. 

For Upcoop, sponsorship is an act of cooperation: it brings together different players around a common ambition, that of advancing the public interest. It reflects its conviction that the company has a role to play beyond its economic activity: that of a committed player, attentive, rooted in local realities and focused on impact. This is how our collective commitment takes on its full meaning.  

Philanthropy as a tool for social transformation 

The Upcoop Foundation draws on the cooperative culture and values of solidarity of the Upcoop group to promote equal opportunities and autonomy for vulnerable people through two areas of action:  

• access to healthy, high-quality food in all regions,
• access to quality education and cultural opportunities 

The Upcoop Foundation supports its partners over the long term, for a minimum of three years, with a focus on co-construction. It regularly assesses the social and territorial impact of the projects it supports.  

Its sponsorship policy is implemented in all Upcoop Group countries that set up sponsorship projects with the Upcoop Foundation and solidarity actors in the regions. 

Upcoop's sponsorship takes several forms: financial sponsorship, skills sponsorship and solidarity actions involving its employees. The Upcoop Foundation mobilises Upcoop Group employees by cooperating with local actors and forging strong partnerships with associations. Its clear objective is to promote equal opportunities, with a particular focus on fragile regions and vulnerable populations. 

Since 2023, the Upcoop Foundation has been a signatory to the Sponsorship Ethics Charter, confirming its commitment to placing transparency and ethics at the heart of its activities. It also formalises the Upcoop Group's adherence to the United Nations Global Compact and its support for the 17 Sustainable Development Goals (SDGs) set out in the 2030 Agenda.

FAQ - frequently asked questions about sponsorship

Who can engage in sponsorship?

Any organisation or individual can engage in sponsorship: businesses (from micro-businesses to large companies), associations, foundations, public authorities and individuals.

Can a microbusiness or SME engage in sponsorship?

Yes, and more and more VSEs (Very Small Enterprises) and SMEs (Small and Medium-sized Enterprises) are choosing to get involved. Sponsorship is not reserved for large groups: every organisation can contribute on its own scale, whether through financial support, in kind or in skills.

How do you know if an organisation is eligible for sponsorship?

To be eligible, an organisation must have a mission of general interest (e.g. social, cultural, educational or environmental). It must be registered as an association, foundation, public institution or non-profit organisation.

Can sponsorship be provided internationally?

Yes. Sponsorship can support projects outside France, provided that they are carried out by organisations recognised as being of general interest in their country, or by French organisations operating internationally.

What formalities must be completed in order to engage in sponsorship? 

The formalities vary depending on the type of sponsorship (financial, in kind or in skills). In general, you must: 

• Sign a sponsorship agreement specifying the terms of the support. 
• Obtain a tax receipt issued by the beneficiary organisation in order to benefit from tax reductions. 
• Declare donations in the accounts or tax return of the company or individual.