If a frim has $250,000, why it would like to support sporting, socail or entertainment events within the community rather than being spent on a financial project?
Which one would improve the value of the firm or more benefitial company?

You are right….financially it is more prudent to spend the money on a financial project than one of these “frivolous” events.

But, maybe this company does not view these events as “frivolous”.

Gaining a good reputation in the community can help increase business, bring more customers and does a tone for goodwill.

So, is it worth it? It depends on the company and the situation.

Thanks captainforest!

Should we also take ''free-tax'' into account when a company makes a donation to these ''frivolous'' event?
Or when should we take the ''free-tax'' into account? And in what's stituation, company can have a free-tax in dividend?



You are right….financially it is more prudent to spend the money on a financial project than one of these “frivolous” events.

But, maybe this company does not view these events as “frivolous”.

Gaining a good reputation in the community can help increase business, bring more customers and does a tone for goodwill.

So, is it worth it? It depends on the company and the situation.