Donations to associations: tax reduction increased to 75% until 2026

In recent months, a number of associations providing assistance to people in difficulty, including Restos du Cœur, have reduced the number of beneficiaries due to rising costs and inflation. Against this backdrop, the members of the French National Assembly wished to make their contribution by announcing a number of new measures. The members of the National Assembly have adopted an amendment to the Finance Bill which increases the tax reduction granted for a donation to an organization helping the underprivileged to 75% until 2026.

A broader tax reduction

In an amendment to the Finance Bill, French MPs have voted to extend the tax reduction granted for donations made to public-interest organizations. The notion of equality between men and women has been added to the list of fields eligible for this tax break.

Raised to 75% rate

Article 200 of the French General Tax Code provides for a tax reduction of 66% of the amount of the donation, up to a limit of 20% of taxable income. For example, a donation of 100 euros entitles the donor to a tax reduction of 66 euros, while a donation of 500 euros entitles the donor to a tax reduction of 330 euros. These amounts are added together if several donations have been made to different associations during the year.

For donations to associations helping people in difficulty (Restos du Cœur, Secours catholique...), the tax reduction has been raised to 75%, up to a ceiling set annually. The ceiling, which had been set at 1,000 euros during the Covid-19 crisis and then extended to December 31, 2023, has now been extended again to December 31, 2026.

To obtain the tax reduction associated with your donation, you don't need to enclose a receipt with your tax return. However, it is advisable to keep the tax receipt issued by the beneficiary association, whatever the nature of the donation. This document is useful for proving the payment of donations in the event of a subsequent audit by the tax authorities.

A new tax break for donations to the Fondation du Patrimoine

The French Finance Bill provides for the creation of a new tax reduction for donations to the Fondation du Patrimoine, with the aim ofensuring the conservation and restoration of religious buildings in small towns. This corresponds to 75% of payments, up to a maximum of 1,000 euros. It can be used to reduce the tax due for 2023, and applies to payments made between September 15, 2023 and December 31, 2025.

As a result, the Finance Act for 2024 broadens the scope of donations eligible for the 66% or 75% tax reduction, and makes donations to associations contributing to gender equality and to the Fondation du patrimoine eligible.