The funds used by associations to carry out their projects come from a variety of sources: government and local authority subsidies, donations from individuals and companies, membership fees, and even donations and legacies.
To encourage the generosity of as many people as possible, the law (articles 200 and 978 of the French General Tax Code) allows associations to provide receipts that donors can present to the tax authorities to benefit from tax reductions.
In this article, we'll explore what this precious tax receipt actually is, how it's designed and what rules an association must follow on the subject.
What is a tax receipt?
You may already have heard of this official document, which certifies a donation and entitles the donor to a tax reduction, ranging from 66% to 75% for individuals and 60% for companies. Donations must be made to works or organizations of general interest, whatever their field of action (sport, culture, art, humanitarian aid, education, etc.), and must be non-profit-making and disinterestedly managed. However, it is crucial to note that neither direct nor indirect consideration must be involved, with the exception of minimal gifts.
It is the responsibility of the association manager to issue the tax receipt in the name of each donor, which can then be attached to the donor's annual tax return. Occasionally, checks are carried out to ensure that the receipts match the amounts actually received in the form of donations to the association's account.
What does a tax receipt look like?
When you make a donation, you need to provide proof to the tax authorities in the form of a specific receipt (known as a cerfa 11580*05). This document attests to the donation made, and must include crucial information such as the amount of the donation, how it was made, the date of payment, and full contact details for both the beneficiary association and the donor. Each tax receipt is identified by a unique number, guaranteeing its authenticity.
Since 2023, a new version of the receipt, recommended by the tax authorities, also requires the association's SIREN or RNA number. Nevertheless, you can add a personal touch by customizing the model, whether by integrating a logo or modifying its format. You can even fill in the official template directly online.
What rules must an association follow to issue a tax-compliant receipt?
Since the October 2016 law for a Digital Republic, making a donation to an association by SMS has become a reality. This modern approach to fundraising broadens and rejuvenates the donor community. To obtain a special number starting with 9, associations must follow a procedure with AFMM (Association Française du Multimédia Mobile) and follow an established process. When an association receives a donation by SMS and wishes to issue a tax receipt, it also requests the donor 's e-mail address at the same time as it sends confirmation of the donation.
In this constantly evolving world, online donation collection software is available such as Leetchi or HelloAsso. These tools not only collect funds, but also redistribute them and track their use. Once payment has been received, the tax receipt is automatically e-mailed to the donor. For regular donors, a personal space records all their payments, and tax receipts are adjusted if necessary to comply with current regulations.
There are certain conditions that must be met in order to issue a tax receipt:
- Be a public-interest organization,
- Be non-profit-making,
- Working in France,
- Do not provide any compensation, with the exception of small gifts and/or benefits,
- Activities open to all,
- Operate selflessly.
If an association wishes to ensure that it is eligible to issue tax receipts, it can request a tax rescript from the tax authorities. A tax rescript is a procedure that allows any entity or individual to put a tax-related question to the government. The Direction Générale des Finances Publiques must respond within three months.
It is essential to note that the issuing of tax receipts by an unauthorized association may result in sanctions. Be vigilant in this process to avoid any unpleasant consequences.