Corporate philanthropy: how companies can make a difference

Corporate philanthropy in all its forms

Philanthropy involves providing financial or material support to an entity (legal person, association, foundation, etc.) to carry out an activity or project serving the general interest while receiving little or nothing in return. As such, it should not be confused with sponsoring.

According to French legislation, philanthropists must not accept more than 25% of the donation value in return from the beneficiary, whereas a sponsor can receive consideration equivalent to the value of their financial contribution.

Consideration can take the form of renting advertising space, highlighting the company’s logo or offering tickets (shows, concerts, etc.). For example, in exchange for its donations to the Hi! PARIS, AI research centre founded in 2020 by Institut Polytechnique de Paris and HEC Paris, the VINCI Group can send a team of employees to the centre every year to take part in a high-level training session. As another example to illustrate the idea, by financing a six-month residency for artists Lek & Sowat in 2025, VINCI’s employees were given opportunities to talk with the pair.

Corporate philanthropy applies to all areas that serve the public good, such as education, science, sport, culture, artistic and cultural heritage, environmental defence, dissemination of culture, language and scientific knowledge, and humanitarian and social causes.

Philanthropy can be provided in three different ways, i.e. financial support, which is the form adopted by nine out of ten companies; in-kind donations, which involve donating goods (food, computer hardware, etc.) - this concerns 28% of companies; and skill-based volunteerism, which involves performing a service or transferring knowledge, such as through training - this concerns 16% of corporate philanthropists³.

Corporate philanthropy: several challenges for all stakeholders

Philanthropy: what are the benefits for companies?

Companies have a lot to gain by engaging with philanthropy, starting with a boost to their reputation and image. Several companies mention that philanthropy has the effect of increasing their regional presence by taking part in projects that matter for their host communities. Philanthropy can also reinforce team cohesion and engagement within the company. According to them, the prime motivation is the chance of expressing and embodying their company’s values. The largest entities also see the opportunity of joining forces with other players in collective projects and potentially attracting new talent⁴.

The impact of the tax benefits granted (varying from one country to another) cannot be ignored: in France, “companies can deduct 60% of the donation which means less revenue for the government. Even on an individual basis, it feels good to know that these incentives work. It means that we can be a lot more generous,” explains Olga Chidlovsky. In France, the tax break is restricted to 0.5% of the annual company’s pre-tax revenue.

Nevertheless, it is estimated that 17% of donations are not declared, which suggests that not all companies are necessarily looking to reduce their taxable income. It is also worth noting that 97% of corporate philanthropists in France are small businesses and mid-cap companies.

Corporate philanthropy supporting society 

Companies contribute 11% of the world’s total philanthropy (approximately $672bn in 2022)⁵, but unlike donations from private individuals, company donations are often larger, more regular and delivered until the end of the project. For example, by becoming a major sponsor of the project to rebuild the spire of the Basilica of Saint-Denis through the Suivez la flèche association, VINCI has pledged to provide its support until the project is completed, which is scheduled for 2029. The goal is to renovate this historic monument, which dates back to the 12th century, and respect the construction techniques of the past, while allowing the general public to visit the worksite and learn about the traditions, history and culture.

As far as the French Government is concerned: “Developing philanthropy in all its forms and among all levels of philanthropic actors represents a challenge for building vitality and fostering social cohesion, as well as a democratic commitment among everyone for serving the common good,”  said Maxime Baduel, Ministerial Delegate for the Social and Supportive Economy⁶. 

In France, sport came top of the philanthropy list for the first time with 40% of donations, boosted by the 2024 Olympic and Paralympic Games (for which VINCI was an official supporter), Culture came in second place (28%), followed by skills-based volunteerism (16%)⁷.

Despite the tensions running through the current economic climate, philanthropy is gaining ground in the country, “which is a clear sign of an entrepreneurial France that knows how to set ambitious economic goals while embracing social responsibility,”  explains Patrick Martin, President of Medef⁸.

Sources :

¹ Admical : “Corporate philanthropy survey in France, edition 2024” – 

https://admical.org/contenu/barometre-du-mecenat-dentreprise-2024 

² World Economic Forum : « The Role of Corporate Philanthropy in Accelerating Climate and Nature Transitions » – https://www3.weforum.org/docs/WEF_The_Role_of_Corporate_Philanthropy_in_Accelerating_Climate_and_Nature_Transitions_2024.pdf 

³ Admical : “Corporate philanthropy survey in France, edition 2024” – 

https://admical.org/contenu/barometre-du-mecenat-dentreprise-2024  

⁴ Ibid. 

⁵ World Economic Forum : « The Role of Corporate Philanthropy in Accelerating Climate and Nature Transitions » – https://www3.weforum.org/docs/WEF_The_Role_of_Corporate_Philanthropy_in_Accelerating_Climate_and_Nature_Transitions_2024.pdf  

⁶ Admical : “Corporate philanthropy survey in France, edition 2024” – https://www.calameo.com/read/007000137177bb484ba31  

⁷ Ibid.  

⁸ (Admical): “Corporate philanthropy survey in France, edition 2024”  https://www.calameo.com/read/007000137177bb484ba31