Great causes are always favored by your donations. Health and medical research, child protection, fight against exclusion, defense of nature ... each of us can act at his level. Giving, even a little, is already a lot. And even if it is not your priority, know that generosity rhymes with taxation and tax reduction.
Donations are often motivated by the donor's personal story. A loved one affected by illness, a trip abroad, a meeting with a person, a passion that one wants to share or see endure... can all be "triggers". The number of associations declared in France is countless. But not all of them are entitled to receive a donation that will give you the right to a tax reduction. And this one differs according to the object of the beneficiary association.
Generosity is still relevant
One would have thought that the Covid crisis, inflation and other similar issues would have made the French more "fearful" and therefore less generous. Well, no. They even mobilized en masse last year. According to the generosity barometer published in May 2022, donations increased by +4.5% (excluding donations made in the context of the health crisis).The causes attracting interest are similar to those of previous years. The top "trio" is composed of :
- child protection (37%)
- the fight against exclusion and poverty (27%)
- support for medical research (26%).
Sponsorship
All companies subject to income tax or corporate tax can donate to non-profit organizations or associations. In return, they benefit from a tax reduction of 30% up to a limit of 10 000 €. Beyond that, the reduction is still 60% but within the limit of 0.5% of the turnover.
Giving is not bequeathing
In 2021, the donation by SMS represented a global amount of 1.3 million euros. In the 1st quarter of 2022, it is already 1.8 million euros donated by SMS
In both cases, it is what is legally called a donation. To simplify, we can say that a bequest is a donation made through a will that will take effect only at the death of the person who makes the bequest. It is revocable. If you want to change the content or the beneficiary association, it is always possible. The gift for its part is irrevocable. It is made during the donor's lifetime and takes effect immediately. The amount of the inheritance that can be bequeathed depends on the family situation. If the legatee has direct heirs (parents, children, grandchildren, married or civil union spouse): they are qualified asreserved heirs. In this case, it is not possible to bequeath the entire estate to the association. The bequest cannot exceed the available portion, which depends on the number of heirs. If there is no heir with right to dispose of the estate: the legatee may dispose of all his assets as he sees fit. He can bequeath his entire estate (universal bequest), a fraction (half, a third, a quarter...) or a category of goods (universal bequest) or even a specific asset: jewelry, works of art, buildings (particular bequest).
Giving to the right beneficiaries
All associations can receive donations. But only some of them allow you to benefit from a tax reduction. The chosen association must be non-profit, have a social purpose and a disinterested management and not operate only for the benefit of a limited circle of people. The donation must be made without any consideration. The field of activity of the association must be philanthropic, educational, scientific, social, humanitarian, sports, family, cultural or contribute to the enhancement of heritage or environmental protection.
Always interesting from a tax point of view
Donations to associations can benefit from important tax exemptions, the amount of which differs according to the purpose of the association:
- donations to organizations of general interest or recognized public utility: the tax reduction is 66% of the amount of the donation. It applies within the limit of 20% of taxable income;
- donations to organizations that help people in difficulty (meals, care, housing):
* donations made in 2022 and 2023 up to €1,000: the tax reduction is 75% of the amount donated;
* donations made in 2022 or 2023 in excess of €1,000: for the portion of the donation less than or equal to €1,000, the tax reduction is 75% of the amount donated. For the part of the donation greater than €1,000, the tax reduction is 66% of the amount donated. The cumulative amount of donations that qualify for the 66% tax reduction cannot exceed 20% of taxable income
- donations to organizations that help victims of domestic violence (accompaniment, re-housing):
* donations made in 2022 up to 1,000 €, the tax reduction is 75% of the amount donated
* donations made in 2022, for the part of the donation (less than or equal to 1 000 €, the tax reduction is 75% of the amount donated. For the part of the donation greater than €1,000, the tax reduction is 66% of the amount donated. The cumulative amount of donations that qualify for the 66% tax reduction cannot exceed 20% of your taxable income.
- donations to religious groups : donations made from January 1, 2022 to December 31, 2022 to an association whose purpose is the organization and celebration of religious worship or to a public institution of worship recognized by the government.tablissement public de culte reconnu d'Alsace-Moselle permettent de bénéficier d'une réduction d'impôt de 75 % dans la limite de 554 €. For the part of the donation that exceeds the annual limit, the reduction is 66%.
Marie-Christine MENOIRE