R&D corporate philanthropy

Endowment fund dedicated to R&D for small parts companies

Information

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Vallée de l'Arve, Haute-Savoie
FR France
Web http://www.expansion2020.com/
Maturity

Starting

About the project Edit

A national endowment fund was created and launched by the competitive centre of Arve Industries and the SNDec (Syndicat National du Décolletage) in Haute-Savoie. The funds are open to donations and corporate gifts from banks, institutions and individuals. The fund aims to collect approximately one million euros per year over the next ten years and to redistribute exclusively to the CTDec (Centre Technique du Décolletage), the organization responsible for the exchange and R&D in the sector, funds released from the capitalization of funds.

Themes

In what ways is this project unique and creative? Edit

This “industrial” endowment is the first to target of R&D financing led by a technical centre in the industrial sector (small parts in the valley of Arve in Haute-Savoie, Cluses region).

What is the social value of this project? Edit

The endowment fund supports the objective of increased spending on R&D in order to achieve 2% of the cluster’s SME added value.

What is the potential of this project to expand and develop? Edit

The potential to expand this initiative is relatively high because it can involve a very large number of competitive centres who have set up collaborative structures for research and development.

However, the model involves existing tax exempt endowment funds, a distinct feature of French foundations. “The endowment fund is a legal, non-profit entity in private law, which receives and manages, by capitalization, property and rights of any kind contributed thereto irrevocably and without consideration, and uses the income from the capitalization for the purpose of completing a work or task of general interest, or redistributes said income to assist a non-profit legal entity in the accomplishment of its works and tasks of general interest”.

(cf. Article 140 of Law n° 2008-776 dated 4th August 2008 on Modernization of the Economy, Official Journal of 5th August 2008)

What was the triggering factor of this project? Edit

The endowment fund falls in Expansion 2020, a development plan launched in 2011 by Arve Industries and Syndicat national du décolletage competitive centre.

What is the business model of this project? Edit

Le rendement espéré du fonds de dotation s'élève à 4% par an. Le fonds vise 400 000 Euros annuels d'intérêt en 2020. Les entreprises donatrices en retirent une réduction fiscale de 60% du montant de leur don. Les particuliers obtiennent une réduction fiscale de 66%.

The expected return of the endowment fund is about 4% per year. The fund is aiming for 400,000 euros of interest annually in 2020. Corporate donors will receive a tax exemption of 60% of their donation.


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