Refresher on non profit association basics in France:
Public appeal
for generosity by an organization
Verified 24 mai 2019 - Directorate for Legal and Administrative Information (Prime Minister)
Organizations wishing to appeal to public generosity are required to make a prior declaration in the prefecture. They must also draw up an annual account for the use of the resources collected, including the allocation of donations by type of expenditure. The approach differs depending on whether the organization has its headquarters in France or not.
Headquarters in France
Organizations seeking to appeal to public generosity must do so
prior declaration where the amount of donations collected exceeds €153,000 during one of the 2 exercises previous or current year.
The declaration shall be made at the prefecture of the department of the head office of the organization.
The €153,000 for accounting periods opened from 1to June 2019 and in any of the 2 previous accounting years.
Statement template for calling for public generosity
Go to form(pdf - 45.0 KB)
General case
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The public call to generosity must support a scientific, social, family, humanitarian, philanthropic, educational, sporting, cultural or environmental cause.
An organization that makes several appeals in the same year may make an annual return.
Where the call is made by more than one body or by one body on behalf of more than one body, the prior declaration shall specify the conditions under which the resources collected are to be distributed among themselves.
The declaration may also provide that a share of the resources collected shall be returned to bodies other than the organizers of the call and allocated to research or social actions. In this case, the declaration shall specify:
- the criteria for the allocation of the share of the resources collected not paid to the organizing bodies,
- and shall designate the body responsible for allocating these funds among the beneficiary bodies.
This information is made available to the public (by posting, television news, etc.)
The declaration shall specify the objectives pursued by appeal for one or, where appropriate, several appeal periods during the same year. If the body intends to launch an appeal whose objectives are not set out in the declaration, it shall make a supplementary declaration beforehand.
The declaration shall also include the following:
- Name of the body
- Legal form
- Headquarters
- Names, forenames and domicile of its representatives
- Identification number in the National Register of Associations (« RNA number ») or, optionally, the identification number of the business directory.
Any organization that has appealed to public generosity must establish a
annual employment account of the resources collected where the amount of donations collected exceeds €153,000 during one of the 2 exercises previous or current year.
The €153,000 shall apply:
- to the accounting years ended from 1to June 2020,
- and to years closed at an earlier date voluntarily in advance.
The annual employment account for the resources collected shall specify, in particular, the allocation of grants by type of expenditure.
Template for annual employment account of resources collected from the public
Meets the regulatory requirement to submit an annual employment account of the resources collected from the public by an association.
Template on page 30.
Go to form(pdf - 740.4 KB)
This employment account shall be deposited at the head office of the organization and made publicly available by all means.
Where the organization has the status of association or foundation, it must also draw up annual accounts comprising:
- a balance sheet
- an income statement,
- and an annex including the annual employment account of the resources collected from the public.
The tax authorities and the Court of Auditors may ask the bodies which have made a public appeal for generosity to report their accounts to it.
The annual employment account is subject to presentation rules laid down by ministerial order.
Donations, donations and bequests for an association
Verified 01 janvier 2020 - Directorate of Legal and Administrative Information (Prime Minister), Ministry responsible for associative life
Any association may, without special authorization, receive manual donations. However, only certain associations can receive donations and bequests. These must be declared in the prefecture. Donations and bequests are subject to inheritance rights, except for certain associations. Any association that benefits from €153,000 of donations must have its accounts certified by an auditor and publish its annual accounts at JOAFE..
The
manual donation consists of a simple physical delivery of a movable property.. For buildings, a notarial act is required.
The
donation or
legacy by authentic or private signature.. The donation is made during the donor's lifetime, the bequest is made by will.
Manual donations, donations and bequests are always made free of charge, i.e. without consideration.
Donations, donations and bequests granted to an association are permanently integrated into its assets.
Recipient Associations
Any association may, without any special authorization, receive manual donations.
Nature of donation
The donation can be made in cash or in kind.
Cash can be donated by check, transfer, direct debit or credit card.
In the case of a gift in kind, the value of the gift is assessed by the donor, whether the gift is granted by an individual or a business. In the case of a gift in kind made by an individual, the association must verify that the assessment is accurate and corresponds to the real value of the object.
Donor tax benefit
Donations made by an individual
General interest or recognized public utility
The tax reduction is 66% the amount of donations. The reduction shall apply within 20% taxable income.
The beneficiary association shall issue a
tax receipt..
Donations eligible for tax reductions include donations made to:
- Works or bodies of general interest having a philanthropic, educational, scientific, social, humanitarian, sporting, family or cultural character, or contributing to the enhancement of the artistic heritage, the defense of the natural environment or the dissemination of French culture, language and scientific knowledge
- Public or private higher education or artistic education institutions of general interest not for profit
- Cultural and charitable associations, public institutions of the cults of Alsace-Moselle
- Public or private organizations whose management is disinterested and whose main activity is the presentation to the public of dramatic, lyrical, musical, choreographic, cinematographic and circus works or the organization of contemporary art exhibitions
- Endowment funds of general interest having a philanthropic, educational, scientific, social, humanitarian, sporting, family, cultural character, or contributing to the enhancement of the artistic heritage, the defense of the natural environment or the dissemination of French culture, language and scientific knowledge
- Endowment funds that are selfless and that transfer income from donations to other non-profit organizations
Taxation
Gifts, donations and bequests made to associations and foundations recognized as having public utility are subject to the rights of succession (called
transfer duty free of charge) provided for succession between brothers and sisters:
- 35% up to €24,430,
- 45% beyond €24,430..
For other associations, the rate shall be fixed at 60% the entire amount of the donation or bequest.
However, donations and bequests made to certain organizations are exempt from inheritance tax. These include donations or bequests granted:
- recognized associations of public interest whose resources are allocated to works of assistance (orphanages, rescue companies, etc.), the defense of the natural environment or the protection of animals,
- works, bodies of general interest or endowment funds having a philanthropic, educational, scientific, social, humanitarian, sporting, family or cultural character, or contributing to the enhancement of the artistic heritage, the defense of the natural environment or the dissemination of French culture, language and scientific knowledge,
- endowment funds that are selfless in their management and that transfer income from donations to other non-profit organizations,
- to religious associations and congregations,
- public or public utility establishments, the resources of which are exclusively dedicated to scientific, cultural or artistic works of a disinterested nature,
- university foundations, partnership foundations and recognized higher education institutions of public interest.
- associations of general interest carrying out concrete actions in favor of media pluralism, by taking minority shareholdings, granting subsidies or subsidized loans to media companies.
Any association that benefits from €153,000 donations of natural persons or moral entitling a donor to a tax benefit must:
- have his accounts certified by an auditor,
- and publish its annual accounts at JOAFE..
It must transmit its annual accounts and the report of the External Auditor electronically to the Directorate of Legal and Administrative Information (Dila) within 3 months of their approval by the statutory legislative body.