INSTEAD OF MONEY, THE COMPANY DONATES STAFF

 

 

A company can also “donate” one of its employees hired on a permanent basis to a non-profit organization. This is a rarely used and little-known opportunity that allows the company to deduct the employee’s cost for the period in which the employee is employed by the non-profit organization. For example, if the employee has a company cost of 40 thousand euros per year and is loaned to the non-profit organization for six months, the company will enter a cost of 60 thousand euros for that employee in the balance sheet (the usual 40 thousand euros plus 20 thousand that are deductible and that, in essence, double the employee’s cost accounted for by the company over the six months). In this case, too, there is a limit: the deduction can be a maximum of 5 per thousand of the total amount of expenses for employee services.