Are you interested in our activities and would you like to become a partner in helping children with a language barrier in the process of inclusion at Czech schools? If you are a legal person, there are 2 possible forms of partnership. Donation and sponsorship.
Donation means a gratuitous transfer of property, which is carried out on the basis of a donation agreement in compliance with the Civil Code § 628. The conclusion of the agreement is a matter of course. For tax advantages, the purpose of the donation agreement must be stated in in according to Act No. 586/1992 Coll., § 20, paragraph 8. Unlike the sponsor of a non-profit organization, the donor makes it clear that it supports the organization’s activities regardless of other possible benefits.
Conditions of the tax advantage for legal entities
According to § 20, paragraph 8 of the Income Tax Act, the value of donations may be deducted from the tax base if its value is at least 2.000CZK. In total, a maximum of 5% can be deducted from the already reduced tax base. This deduction cannot be claimed by taxpayers who aren‘t established or founded for business purposes. Detailed information can be found in Act No. 586/1992 Coll., about income taxes.
Unlike donating, sponsoring is based more on reciprocity. The recipient, META in this case, undertakes to provide promotion and advertising for the sponsor. The sponsor‘s contribution is understood as a payment for this service. The agreement isn’t a donation agreement but promotion agreement that we will conclude with you.
Would you like to become a partner? Contact our Executive and Financial Director Linda Tutterová (firstname.lastname@example.org, 773 304 464).
We are looking forward to cooperating