Use of charity name and logo

This is the reverse of sponsorship – where companies typically give charities a percentage/amount for every product sold. In return they are allowed to use the name and logo of the charity to raise awareness of the relationship. HMRC regards this as a payment for services – being allowed to use the charity name in a way that will benefit the company.

As with corporate sponsorship, VAT will be due and charities need to ensure that any agreement allows VAT to be charged in addition to the agreed payment.

Also, if a donation is given in addition to the sponsorship payment this may be excluded from the taxable amount, provided that it is clear from any agreement that the donation is entirely separate from the sponsorship.

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