Andersen and the AEF Spearhead Cultural Shift

In a bid to bolster the social protection of various stakeholders and enhance investor participation, the recent amendment to the Patronage Law entails an overhaul of its fiscal incentive framework. In a collaborative effort, Andersen, in partnership with the Spanish Association of Foundations (AEF), orchestrated the event ‘The New Patronage Law: Fostering Philanthropic Culture in our Country’, delving into how this reform could serve as a pivotal tool in reshaping philanthropic culture in Spain.

The session, graced by Ignacio Aparicio (pictured), Executive Partner at Andersen, Silvia de Andrés, Tax Partner at Andersen, Fernando de Rasche, Counsel at the Corporate Department, and Pablo Álvarez de Linera, Of Counsel in the same area, offered practical insights with contributions from Isabel Peñalosa Esteban, Director of Institutional Relations, Legal Advice, and Communication at AEF; Carmen Reviriego, President of the Callia Foundation; and Leticia Rato, representing ProFuturo Education, a Program by Telefónica Foundation and la Caixa Foundation.

Under the new law, substantial enhancements to fiscal incentives aim to bridge the funding gap for foundations addressing crucial aspects of our welfare state through private contributions. Additionally, it seeks to establish a legal framework conducive to enhancing social protection for all stakeholders involved.

During the session, Ignacio Aparicio elucidated Andersen’s consolidated efforts through a dedicated Patronage task force comprising professionals from diverse fields, attuned to the needs and concerns of all parties involved in the third sector: companies, estates, and foundations.

Addressing the benefits of becoming patrons for corporations and high net-worth individuals, both as a socially responsible investment under ESG criteria and from a fiscal standpoint, Silvia Andrés emphasized that the deduction in Corporate Tax could reach up to 50%, capped at 15% of the taxable base for the period. She added, “These modifications can transform the norm into an indispensable tool for advancing the philanthropic culture shift in our country, as we are still lagging behind Anglo-Saxon models.”

The norm also introduces significant novelties concerning collaboration agreements and their dissemination. All speakers underscored the need to enhance transparency and accountability of foundations through the development of codes of good practices and tools to measure project impact, emphasizing the importance of pooling efforts among foundations for greater initiative and impact.