“There was no fortune and then misfortune helped – this Russian saying is very fitting to the latest development in taxation that happened due the COVID pandemic in Russia. For more than a decade Russian NGOs advocated for introduction of tax incentives for corporate donors, but the government was dead against it. When COVID hit, Russian civil society and its corporate supporters mobilised really quickly to help the most vulnerable – distributing food, PPEs, moving social services to on-line and engaging millions of volunteers to deliver help when it was most needed.
These efforts didn’t go unnoticed by the government and dramatically increased appreciation of non-state action of solidarity and mutual support helping the government to relief suffering in a flexible and swift way – in rural areas, care homes, hospitals. This appreciation was not just moral and facilitated an incredible change in the legislation that had seemed impossible before. Tax incentives for companies giving to charity were swiftly adopted in May providing a tax break for up to 1% of annual income to businesses making donations to a wide range of NGOs included in a state-run register. The law works retrospectively, so all the donations made in 2020 are included. Although provoked by COVID, the new law is not time-bound and would hopefully become a good incentive for Russian companies to continue giving in the years to come. It will also be very helpful to maintain the levels of giving in the time of economic hardship brought by the pandemic.”
– Maria Chertok, Director, CAF Russia
Note: corporate contributions in Russia are estimated at the level of 500 bln rubles annually
ABOUT CAF RUSSIA
CAF Russia supports companies’ corporate social responsibility initiatives. We help companies to make the most of their charity activities by implementing programs on behalf of the companies, assisting in establishment of independent charities, and providing consulting services in the field of corporate philanthropy policies.
We achieve the maximum effectiveness of funds donated by individuals and corporate donors. As a consultant, CAF Russia has helped dozens of companies and private foundations to develop social and philanthropy policies corresponding to the international standards in the field of social investment management.
We provide companies with practical approaches to corporate social responsibility.
- Development and implementation of corporate charity programmes
- Consulting support to corporate social initiatives
- Consulting projects to develop local philanthropy
- Payroll giving programmes for company employees
- Client donation programmes
- Cause related marketing projects
- Involvement in successful CAF programmes