Corporate Donations: Social Responsibility and Tax Benefits

If you’re an individual looking to donate to a registered charity, adding Gift Aid as a UK taxpayer is the way to go, as it increases the amount the charity receives. However, when donating to a CIC like BrightPaths, Gift Aid doesn’t apply; you donate the sum you wish to contribute to support the cause.

For businesses, there are tax considerations to keep in mind when donating.

Companies can only receive Corporation Tax relief on charitable donations when the payment is made to a registered charity.

To support BrightPaths with Corporation Tax relief, companies can donate via a charity route (e.g., Localgiving), which can then grant funds to us.

If a company wants brand recognition, a payment to BrightPaths CIC must be structured as sponsorship, which HMRC treats as a business advertising expense when the benefit is wholly and exclusively for the company’s trade.

This donation has to be paid gross and treated as a normal trading expense.

Get in Touch

If you want to learn more about how your business can support BrightPaths CIC and the potential tax benefits, don’t hesitate to reach out. We’re here to answer any questions and explore collaboration opportunities that align with your corporate social responsibility goals. As always, discuss your plan with your accountants to make sure your donation or sponsorship works for you.

Your contribution can make a real difference in supporting our mission and initiatives. Together, let’s create positive change in our community.

Contact us for further information or to discuss how you can get involved.

Natashia Leader – Founder & CEO

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