Sponsorship regulations in Turkish tax system

As a result of globalization, organizations are supposed to create value for both their customers and society in a broader perspective. Nowadays sponsorship activities are important strategic tools for corporation to meet the requirements of social responsibilities against primary and secondary stakeholders. Sponsorship can be defined as investing in a entity to support overall organizational objectives, marketing goals, and/or promotional strategies. There has been an important rise in corporate spending on sponsorship in many developed countries. The reasons of sponsorship?s development are government policies on tobacco and alcohol, escalating cost of advertising media, new opportunities due to increased leisure activity, greater media coverage of sponsored events, inefficiencies in traditional media, etc. Comparing with advertisement and charity, the concept of sponsorship has very distinctive features. Main purpose of corporate sponsorship is to provide opportunities for organization to built successful public relations and corporate image. In this context, corporations make monetary and other kind of contributions for activities which create value added for society, such as cultural, sportive, public health, environment, educations, etc. As happened in sport, Government can motivate cor¬porate sponsorships by allowing tax deduction and incentives to improve poor quality public services in areas such as education and public health etc. In Turkey.