Donations are vital to your association, but did you know that issuing tax receipts is subject to precise management conditions? Only certain associations can offer their donors tax benefits. How do you know if yours is one of them, and what steps do you need to take to qualify?
Many associations can receive donations from individuals and companies, but the possibility of issuing tax receipts, enabling donors to benefit from tax reductions, is strictly regulated. Only certain associations, in accordance with Articles 200 and 978 of the French General Tax Code(CGI) for individuals andArticle 238 bis for companies, are authorized to issue such receipts.
The first step is to check whether the association meets the criteria for recognition as a non-profit organization, an essential condition for issuing tax receipts. These criteria include non-profit activities, the absence of profit for a restricted circle of people, and a philanthropic, educational, scientific, social, humanitarian, sporting, family or cultural character. Associations working to preserve artistic heritage, protect the environment or promote French culture and knowledge are also eligible.
Donations eligible for a tax deduction can take many forms, from financial contributions to gifts in kind (such as works of art or equipment). These donations must be made without consideration to qualify as liberal. It is also important to note that donations must be paid into the pro association account to be properly accounted for and eligible for tax benefits.
If the association meets the criteria, it can issue tax receipts, enabling individual donors to benefit from a tax reduction of 66% of the amount donated, up to a limit of 20% of their taxable income. For certain associations, such as food aid organizations, the rate can rise to 75% up to a maximum of 1,000 euros, until 2026.
Concerning the Impôt sur la fortune immobilière (IFI), donors can benefit from a reduction of 75% of the amounts donated, capped at 50,000 euros, if the donations are made to entities specified by the CGI.
Associations must follow a precise protocol for issuing tax receipts, including mandatory information such as the contact details of the association and the donor, the amount and date of the donation, the nature of the donation, the method of payment and the signature of an authorized representative.
Incorrectly completed tax receipts can result in substantial penalties. In the event of an error, the fine is calculated according to the amount of the tax reduction or tax credit wrongly granted. Failure to include the correct information may result in a fine equivalent to the amount of tax relief wrongly granted.
The tax authorities have stepped up their checks on the compliance of tax receipts. Associations and companies making donations must also comply with reporting obligations, notably concerning the total amount of donations received and the number of receipts issued.