Corporate philanthropy
Corporate philanthropy allows a company to fund or co-fund a doctoral project while benefiting from a tax reduction
The tax incentive is greater for philanthropy than for a standard industrial collaboration. However, under philanthropy arrangements, the company has no intellectual property rights over the research results, and other forms of consideration (for example, visibility, mention of the company's name, etc.) must remain modest.
This scheme encourages open innovation, strengthens links between academia and the private sector, and contributes to the training of future PhD holders.
Doctoral philanthropy can be used when the doctoral candidate is recruited by a higher education and research institution or a national research organisation.
Skills-based philanthropy can be used to make an employee available, full-time or part-time, to work on a doctoral project in a French academic institution.
Doctoral philanthropy
The principle
Doctoral philanthropy allows a company to fund or co-fund a doctoral project at a higher education institution, a research organisation or a university foundation, on subjects of general interest, fundamental research, etc.
Unlike a 'standard' research partnership (see Cifre & CICO), the company cannot claim any intellectual property rights over the research results under philanthropy arrangements. Other forms of consideration granted to the sponsoring company must remain modest, must not be disproportionate to the donation, and must not serve the company's commercial interests directly or excessively.
Why get involved in doctoral philanthropy?
- For companies: enhancing the company's image, access to cutting-edge research, development of strategic partnerships,
- For universities: additional funding for research, increased attractiveness for doctoral candidates, and strengthened links with companies,
- For doctoral candidates: financial support, access to material and human resources, and increased career opportunities.
How does it work?
- Doctoral schools communicate the subjects that may be open to philanthropic funding,
- The company can choose a thesis project proposed by a doctoral school,
- It signs an agreement with the higher education institution, the research organisation or the foundation,
- The company makes a financial contribution,
- In return, it receives a tax receipt entitling it to the tax reduction.
Skills-based philanthropy, an option to consider for employees in work
In addition to doctoral philanthropy, which takes the form of a payment to a doctoral school, companies can also get involved through skills-based philanthropy: they make employees available to undertake a doctorate in an academic research laboratory.
This secondment, valued for tax purposes (salary plus social security contributions), allows the company to benefit from a significant tax reduction, while providing concrete, hands-on support for research and helping the seconded employee develop their skills.
An agreement sets out the terms of this collaboration, which may take the form of a loan of staff or a service provision arrangement.
Government support
Doctoral philanthropy allows a company that funds or co-funds a doctoral project to benefit from a tax reduction equal to 60% of the amount donated, for the portion up to €2,000,000.
However, the amount of donations taken into account for calculating the reduction cannot exceed, within the same financial year, either a ceiling of €20,000 or 0.5% of the donating company's annual turnover, excluding tax, if the latter amount is higher. Where this amount is exceeded during a financial year, the surplus may be carried forward over a maximum of the following 5 financial years.
Note that the tax credit rate for a 'standard' research collaboration (CICO) is 40% to 50%, depending on the size of the company, and the research tax credit (CIR) is 30%.