While making a donation to an association is, above all, a generous gesture that shows your solidarity with great causes, it can also be very attractive from a tax point of view.
Donations are often motivated by the donor's personal story. A loved one affected by illness, a trip abroad, meeting someone, a passion that you want to share or see endure over time... can all be "triggers". There are countless registered associations in France. But not all of them are entitled to receive a tax-deductible donation. Several conditions must be met.
Freeze frame
Contrary to what might have been feared, the health crisis has not dampened the generosity of the French. On the contrary, it has encouraged donations to associations. According to an Ipsos survey published last summer, for 65% of French people, the crisis has made them want to show more solidarity. The survey also revealed that a majority (51%) intended to donate the same amount as in 2019 (on average between €250 and €300).
Given the context, associations involved in health, medical research (39%) and helping the most disadvantaged (27%) collected the most donations. These are closely followed by environmental causes (27%). Not forgetting the traditional defense of animals (23%). Child protection received 30% of donations.
The figures also reveal disparities by region and age. In 2020, the amount donated (per year and per inhabitant) was highest in Île-de-France (€321), Occitanie (€226), Hauts-de-France (€216) and Centre Val-de-Loire (€213). At the bottom of the table are Nouvelle-Aquitaine (€133) and Normandie (€157).
An October 2020 survey, Odoxa for France Bleu, Le Parisien and Leetchi.com. reveals disparities according to the age and income level of donors. In 2020, "the under-35s and low-income households gave more than ever before", says the survey. Those aged 18-24 gave an average of €228 (+€60), while those aged 65 and over gave an average of €268 (-€26). Less well-off households were also more generous than last year (+ € 23).
The art of giving
While all associations are eligible to receive donations, not all of them will allow you to benefit from tax reductions. To benefit from this advantage, the organization must meet several criteria: be non-profit-making, have a corporate purpose and disinterested management, not operate for the benefit of a restricted circle of people (as is the case, for example, with parent-teacher associations, veterans' associations, sports associations...)...). The organization must be of a philanthropic, educational, scientific, social, humanitarian, sporting, family or cultural nature, or contribute to the enhancement of heritage or the protection of the environment.
Donors are free to choose whether to :
- make cash payments (such as cash, cheques, bank transfers or even SMS text messages) ;
- transfer income (such as rent, investment interest, trademark and patent royalties);
- donations in kind ( works of art, jewelry, cars, etc.).
It's worth noting that, as a result of the confinement, more and more French people are giving via the Internet: + 230% of donations.
A discount for every association
Not all associations have the same vocation. And the amount of the tax reduction will differ too. Donations to organizations of general interest, recognized as being of public utility, and to religious or charitable associations, entitle you to a tax reduction equal to 66% of the total amount paid, up to a limit of 20% of your household's taxable income. Donations to organizations providing assistance to people in difficulty (free meals or care, housing assistance) entitle you to a tax reduction equal to 75% of payments up to a limit of €1,000 for donations made up to December 31, 2021. Beyond this maximum amount, the remainder is eligible for a 66% reduction, up to a limit of 20% of the donor's taxable income.
For example, if an individual has made a donation of €1,200 to the Restos du cœur or the Red Cross, he or she will benefit from an income tax reduction of: (75% x €1,000 = €750) + (66% x €200 = €132) = €882.
This tax reduction also applies to donations made between January1, 2020 and December 31, 2021 to non-profit organizations that take concrete action in favor of victims of domestic violence, offer them support or help to rehouse them.
In some stores, you can round up your payment to the nearest euro. This is called "rounding up" and allows you to make a micro-donation to an association. This type of donation qualifies for the same tax reductions as direct donations, provided you can produce proof.
Family donations too
Family donations are also widely favored by the tax authorities. For example, the3rd amended finance law for 2020 grants a temporary tax exemption on certain donations of sums of money, made between July 15, 2020 and June 30, 2021 up to a limit of €100,000. To qualify, the recipient must use the sum to create or develop a small business employing fewer than 50 people. Annual sales must not exceed €10 million, and the company must not yet have distributed any profits. This type of exemption applies to donations of €100,000 for the construction or energy-efficiency renovation of the beneficiary's main residence.
This temporary allowance can be combined with other existing allowances. The €100,000 exemption is in addition to the existing allowances of :
- 100,000 € on gifts between parents and children and €31,865 between grandparents and grandchildren;
- 31,865 on gifts of money (known as family gifts or Sarkozy gifts) to adult children or grandchildren, provided the donor is under 80.
Declare donationsWhen you file your annual income tax return, you must indicate the amount of any payments made in box 7 UF of the n°2042 RICI return. Donations made in 2020 must be declared with your income tax return in spring 2021. To benefit from the tax reduction, the association in question must provide you with a receipt as proof of donation to the tax authorities.
Marie-Christine Ménoire