Corporate sponsorship initiatives have grown significantly in recent years and are increasingly becoming part of structured CSR policies. According to the Admical 2024 Corporate Sponsorship Barometer, 37% of employees now say they feel involved in their company's sponsorship activities, an increase on previous editions.
However, there is still room for improvement in this area. In many organizations, corporate giving programs remain centrally managed, with limited employee involvement in choosing the causes to support. This distance can hinder teams' ownership of corporate giving initiatives, despite a growing desire among companies to strengthen their social commitment.
Participatory sponsorship is part of this evolutionary approach. As an operational extension of CSR policy, it aims to involve employees more closely in sponsorship decisions by allowing them to propose and select the projects to be supported. This approach encourages teams to become more directly involved in charitable initiatives, while remaining fully in line with corporate sponsorship policy.
The company also maintains the tax framework for corporate giving, with tax reductions of up to 60% in accordance with current legislation. This approach can help strengthen employee engagement while facilitating the monitoring and transparency of the actions carried out.
Platforms such as MecenUS support companies in implementing these participatory sponsorship schemes by structuring contributions and ensuring a clear and compliant framework.
Participatory sponsorship: definition and how it works
What participatory sponsorship changes
Participatory sponsorship is changing the traditional approach to corporate giving. In this model, management sets the framework and priorities, while involving employees in selecting the causes to support. Employees can propose projects and participate in the selection process, while the company validates their consistency with its values and finances the initiatives that are chosen.
This scheme falls within the legal framework of corporate sponsorship. In particular, it complies with Article 238 bis of the General Tax Code, and donations made benefit from the same tax reductions as traditional sponsorship, with no change to the applicable regime.
The 4-step process
Step 1: Define the framework
The company sets its overall sponsorship budget and specifies its priority sectors (social, culture, environment, education, research, health, sports, etc.). This framework ensures that the sponsorship program is consistent with the company's overall CSR strategy.
Step 2: Source projects
Employees can suggest eligible organizations for sponsorship, such as associations, foundations, or certain local authorities, that they would like to support. Certain platforms, such as MecenUS, facilitate this process by providing projects led by organizations that have been pre-selected according to sponsorship eligibility criteria.
Step 3: Vote collectively
Employees participate in a vote to select the eligible organizations to support, according to the terms defined by the company. This phase can promote discussion and strengthen team involvement in charitable initiatives.
Step 4: Fund and communicate
The company pays donations to eligible organizations and monitors how the funds are used. Employees are informed about the actions taken and the activities of the beneficiary associations, with a view to supporting the operations and overall mission of the organizations.
Why adopt participatory sponsorship?
Stronger employee engagement
By involving employees in choosing which organizations to support through sponsorship, participatory sponsorship encourages more direct involvement in the company's charitable activities.
Designed as an operational lever for CSR policy, this system allows employees to feel more listened to and involved, which can encourage their participation in corporate sponsorship initiatives.
This approach helps to change perceptions of CSR, bringing it closer to the practical concerns of teams. Employees can thus become natural advocates for the company's social initiatives.
A valued employer brand
Social responsibility is now one of the criteria that attracts many candidates. According to a study by Cone Communications (2023), a majority of candidates say they value companies' commitment to social and environmental issues.
By involving employees in its sponsorship activities, the company can strengthen their sense of pride and belonging, while giving greater visibility to its commitments to its stakeholders.
A more visible social impact
Participatory sponsorship allows eligible organizations to be supported in line with the sensibilities and proposals of the teams. This proximity facilitates the monitoring of actions carried out by the supported organizations and a better understanding of their activities, both for the company and for the employees involved.
Receiving regular feedback on supported projects can encourage long-term involvement and, in some cases, lead to additional commitments, such as volunteering.
Identical tax benefits
Participatory sponsorship falls within the scope of traditional corporate sponsorship. It entitles donors to a tax reduction of 60% of the amounts paid, up to a limit of €20,000 or 0.5% of annual turnover, in accordance with Article 238 bis of the French General Tax Code.
Donations in cash, in kind, or in the form of skills remain eligible, and reporting requirements remain unchanged, in particular via form 2069-RCI.
The tax framework for corporate sponsorship remains unchanged
Tax cuts maintained
Any company subject to corporate income tax or income tax may engage in participatory sponsorship. This falls within the tax framework of traditional corporate sponsorship. Donations are eligible for a tax reduction of 60% of the amount paid. For donations exceeding €2 million, the rate is increased to 40%, in accordance with Article 238 bis of the General Tax Code.
The annual deduction limit applies according to the usual rules, i.e., €20,000 or 0.5% of turnover excluding tax, whichever is higher. When this limit is exceeded, the excess can be carried forward to the following five financial years.
Concrete example: a medium-sized company with a turnover of €8 million can deduct up to €40,000 in donations (0.5% × €8 million), which is higher than the flat-rate threshold of €20,000.
Eligible beneficiary organizations
As part of the employee-driven philanthropy program, employees can propose and select causes to support, provided that the organizations are eligible for sponsorship.
These must be of general interest, non-profit-making, managed in a disinterested manner, not benefit a restricted circle, and fall within the areas covered by Articles 200 and 238 bis of the General Tax Code.
Eligible organizations include associations recognized as being of public interest, foundations of general interest, non-profit educational institutions, cultural, scientific, or humanitarian organizations, as well as certain approved environmental organizations.
Specialized platforms can support companies in this process by helping to verify the eligibility of the proposed organizations and structure the projects presented to employees.
Unchanged reporting requirements
The company declares its donations under the same conditions as for traditional sponsorship. It completes form 2069-RCI when filing its annual tax return and, for donations exceeding €10,000, attaches an appendix specifying the identity of the beneficiaries.
The beneficiary organizations issue a tax receipt, using form 2041-MEC-SD, certifying the authenticity of the donations received. The company keeps these documents so that they can be presented in the event of an audit.
The participatory nature of the system does not entail any changes to reporting procedures. Certain platforms can facilitate the centralization of tax receipts and the tracking of donations, thereby contributing to the traceability and administrative management of sponsorship.
Implementing participatory sponsorship in practice
Define your strategy in advance
The first step is to define your overall sponsorship budget. It is recommended that you assess your financial capacity for the fiscal year and identify the maximum tax deduction available for corporate sponsorship.
Next, you need to determine your main areas of focus. In practice, targeting three to five sectors (e.g., social, culture, health, environment, education) helps guide employee proposals while ensuring consistency with the company's values and CSR strategy.
Finally, the governance model must be clearly established. Who validates the eligibility of projects: a CSR committee, senior management, or a dedicated body? Defining the rules from the outset and communicating them transparently helps to build trust and limit misunderstandings.
Choosing the right deployment tool
There are several options for implementing a participatory sponsorship program. Some companies choose to develop an internal platform, while others rely on specialized external solutions.
Platforms such as MecenUS offer structured systems for listing pre-selected community projects according to sponsorship eligibility criteria. They can facilitate the organization of the proposal and voting phases, as well as the administrative follow-up of donations. Employees thus have a dedicated space to discover projects in line with the company's defined priorities.
Using an external solution can save time in operational management and support the company in structuring the system, while helping to ensure compliance with the applicable tax and regulatory framework.
Communicate with and train your teams
The success of participatory sponsorship depends largely on internal communication. It is essential to clearly present the program, its objectives, how it works, and the associated schedule. Simple educational materials and concrete examples can facilitate understanding and buy-in.
Organizing opportunities for discussion, such as Q&A sessions, helps employees better understand their role and how projects are selected. Clarifying the decision-making process helps to reinforce the credibility of the system.
Some companies also choose to appoint CSR representatives or ambassadors within their teams. Their role is to disseminate information, answer questions, and encourage participation in the program.
Manage and monitor the system
The management of participatory sponsorship is based on monitoring a few key indicators, such as the rate of employee participation in voting, the number of projects supported over the year, and qualitative factors relating to the actions carried out by the beneficiary associations.
Regular communication on the progress of the program, the projects supported, and feedback from associations helps to maintain long-term commitment. Testimonials or concrete illustrations of the actions funded can reinforce the visibility of the actions carried out.
Finally, gathering feedback from employees after several months of implementation allows you to identify areas for improvement and adjust the system for future campaigns.
Launch a participatory sponsorship initiative
Where to begin
Participatory sponsorship can gradually become part of a company's CSR strategy. To initiate the process, a few structural steps can be taken to establish a clear framework.
The first step is to assess the current situation. This involves identifying existing sponsorship initiatives, evaluating the level of employee involvement, and identifying which programs are effective and which are falling short.
Next comes the definition of objectives. A company may wish to strengthen internal cohesion, promote its CSR policy, improve the visibility of its social commitment, or further structure its sponsorship activities. These objectives guide organizational choices and implementation methods.
Finally, it is often a good idea to start with a pilot project, limited to a specific scope such as a department, site, or entity. This experimental phase allows you to observe how the system works and adjust certain parameters before potentially rolling it out more widely.
Resources to support the process
Various solutions can assist companies in setting up participatory sponsorship programs. Specialized platforms, such as MecenUS, offer structured systems for listing community projects that have been pre-selected according to sponsorship eligibility criteria. They can facilitate the organization of the proposal and voting phases, as well as certain administrative aspects and the monitoring of actions taken.
Other players are also active in this market. It is recommended that you compare the available solutions based on your company's needs, paying particular attention to tax compliance, the quality of support offered, and the user-friendliness of the tools made available to employees.
An evolving approach to engagement
Participatory sponsorship is part of a broader reflection on employee engagement and the place of solidarity initiatives within the company. By involving teams more closely in the choice of causes to be supported, it can help to make the CSR approach more transparent and widely shared.
Feedback from certain organizations highlights the importance of gradually involving employees and establishing a clear framework to ensure the consistency and sustainability of the program. Like any CSR initiative, participatory sponsorship benefits from being adjusted over time, based on internal feedback and the company's priorities.
The implementation of participatory sponsorship is therefore based on a balance between strategic framework, employee participation, and compliance with the legal framework, in the service of a structured and sustainable social commitment.
About the legal framework
This article presents participatory sponsorship in accordance with French tax law. The tax reduction rates mentioned, in particular the 60% reduction, correspond to the provisions of Article 238 bis of the General Tax Code. Companies must ensure that the organizations they support are eligible and that they comply with reporting requirements. If in doubt, it is recommended that you consult a certified public accountant or the tax authorities.
Sources
Corporate Sponsorship Barometer, Admical, 2024
Article 238 bis of the General Tax Code
Cone Communications study on CSR commitment, 2023
Service-Public.fr – corporate sponsorship
