Donating to a good cause also allows taxable households to benefit from a tax reduction on income of 66% or 75% of the amount paid according to the purpose of the association. To qualify for the tax advantage, it must be, whatever its field of intervention (educational, social, humanitarian, scientific, etc.), an approved foundation, a non-profit organization, recognized as being of public utility. or of general interest, a union or a political party. You must keep the tax receipt for 3 years, to present in the event of an audit.
How to declare donations to associations of the most deprived?
Donations to associations, located in France, which provide free meals, medical care, or even promote housing for people in difficulty (Restos du Cœur, Emmaüs, the Red Cross, Unicef, Médecins sans frontières, etc.) are deductible from your taxation for 75% of the amount paid within the limit of €1,000 (ceiling maintained for 2023). To be reported in box 7UD of the declaration. A donation of €80, for example, reduces your tax by €60. If your donations exceed €1,000, the surplus remains tax-free at 66% and up to 20% of your taxable income. To be entered in box 7UF.
And support for other associations?
For all other associations of general interest or recognized as being of public utility (the SPA, Telethon, the League against cancer, the Pasteur Institute, Sidaction, the fight against violence against women, etc.), the tax reduction is 66% of the amount paid. For example, €80 reduces your tax by €52. The amount given is to be indicated in box 7UF within the limit of 20% of your taxable income. Beyond that, you can carry the surplus over the following five years (box 7XS, 7XT, etc.).
To know : a donation must not have any counterpart. The purchase of greeting cards or calendars from the association, for example, is not considered a donation.
How to declare union dues?
It entitles you to a tax credit (which means that if you are not taxable, you will be reimbursed by the tax administration) equal to 66% of contributions paid within the limit of 1% of salaries and pensions. To be reported in box 7AC.
Donation and contribution to political parties
They are deductible for 66% of their amount within the limit of 20% of taxable income, but cannot exceed €7,500 per person for payments for the benefit of a party (box 7UH) and €4,600 when they are allocated for financing the electoral campaign of candidates (box 7 UF).
What is the “Donation with Confidence” label?
Created in 1989 for foster donor confidence, this non-profit organization awards the label to organizations that request it based on criteria of transparency, the search for efficiency, probity and disinterestedness and respect for donors. Around a hundred organizations are certified.
What is the difference between tax credit or reduction?
THE tax credit corresponds to an amount deducted from your income tax. If it is greater than the tax amount, the surplus (or even the entirety if you are not taxable) will be refunded by the administration.
The tax reduction also corresponds to an amount deducted from your income tax. But if the tax reduction is greater than the amount of tax due, or if you are not taxable, no refund will not be possible.