Learn how to master the fundamentals of fundraising, while offering your donors attractive tax benefits. Discover the keys to a successful campaign for your charity. Fundraising in the non-profit sector is subject to strict tax rules. This article will show you the best practices for running a donation campaign that is both compliant and effective.
The basics of collecting donations from individuals
For non-profit organizations, soliciting donations from individuals or companies is crucial to financing projects of general interest. Each contribution supports social, cultural or educational initiatives, ensuring the organization's long-term future.
It is therefore essential for any association wishing to launch a fundraising campaign to understand not only the basic principles, but also the strategies for maximizing the impact of every euro raised. In this article, we focus on fund-raising from individuals.
In the past, Anglo-Saxon countries were the most active in fund-raising, while in France, associations mainly benefited from public subsidies. However, the gradual reduction in state subsidies has prompted French associations to seek new sources of funding, notably through the generosity of the general public.
The French people's growing support for associations has been reinforced by a tax incentive framework that encourages individual philanthropy.
Tax benefits for donors
Donations of money or goods entitle donors to a reduction in income tax. However, this tax advantage is only available to associations recognized as being of general interest and operating on a not-for-profit basis.
To guarantee their eligibility under the sponsorship scheme, associations can request a tax ruling from the tax authorities, confirming their donors' right to benefit from these tax reductions.
Donors can deduct up to 66% of the amount of their donations, and up to 75% in the case of donations eligible for theColuche amendment. Associations must also provide a tax receipt, which is essential for donors' tax returns.
Statistics on generosity in France
Despite an uncertain economic climate and tax reforms, the generosity of the French continues to grow. In 2022, donations increased slightly, with a growing interest in dematerialized means of giving.
Trends show the growing popularity of online giving and direct debits, confirming that digital plays a key role in modern philanthropy.
The majority of donors are women, with a high proportion of over-50s, often religious believers. Many have a monthly income in excess of €2,300, underlining the importance of this segment of the population.
What's more, innovative schemes such as SMS donations open up new opportunities for associations, especially those seeking to diversify their funding sources and reach a younger audience.
Understanding these dynamics is vital for associations to refine their fundraising strategies and amplify their social impact.