It’s easier than it seems: companies can invest in communities by choosing to sponsor an NGO, by redirecting part of their tax on profit. This option doesn’t cost anything; on the contrary, it is a win-win for both entities.

 

At the initiative and with the support of the Romanian-American Foundation, specialists in audit and financial consulting from Price Waterhouse Coopers Romania developed a user-friendly document explaining the mechanism of deductible sponsorships for companies. This document was created to support the Community Foundations, but it can be used by any other nongovernmental organization functioning under the Law for Associations and Foundations in Romania in their discussions with companies active in their local communities or at the national level.

Briefly, according to the Fiscal Code, any company can redirect 20% of the income tax owed, but no more than 0.5% of the annual turnover, to support activities of the not-for-profit sector. Thus, companies can obtain fiscal credit for the entire sponsored amount. Moreover, the sum offered as a sponsorship can be reported and recovered for the following seven consecutive years.

A warm thank you to the Price Waterhouse Coopers team for their collaboration and support!

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