The last months of the year concentrate more than 40% of donations to associations. And even more than 20% in December! Because beyond charity, donations also make it possible to usefully reduce taxes… provided they are taxable, obviously.
Restos du coeur, Secours catholique, Red Cross, AFM-Tlethon, Médecins sans frontières (MSF): here is the undeniable top 5 charities who receive the most donations from individuals each year.
With the exception of the French Association against Myopathies (AFM), whose success comes mainly from Telethon, the four other associations cited have in common that they are recognized as organizations helping people in difficulty (1). This category, which also includes Handicap International, the Abb Pierre Foundation, the Apprentis d’Auteuil and UNICEF, allows you to benefit from a income tax reduction of 75% of the payment. It normally only concerns associations providing meals, housing or even care to the most deprived.
Extended boost for donations 75%
In 2023, as in 2022, 2021 and 2020 following the health crisis, the ceiling for donations benefiting from this 75% reduction is raised to 1000 euros, i.e. 750 euros maximum reduction. And this ceiling will remain 1000 euros until 2026 since the measure was integrated into the 2024 budget via an amendment. When donations exceed the ceiling of this reduction nicknamed the Coluche law, the remaining sums are eligible for the 66% advantage.
Taxes and donations: should we keep each tax receipt?
Donations of general interest? 66%
Do you plan to donate during Telethon 2023, scheduled for the weekend of December 8 and 9? The AFM is one of the many other organizations of general interest (2) on the tax form, such as the League against Cancer, the Pasteur Institute, CCFD-Terre Solidaire, Amnesty International, AIDES, Sidaction, Greenpeace, WWF, the SPA… These organizations are eligible for 66% tax reduction of the amount of the donation.
Please note: to be eligible for a reduction, your donation must not allow you to benefit from any compensation! Whether it takes the form of a good or a service.
The legislation also provides for a ceiling for this category of donations: they are limited to 20% of the taxpayer’s taxable income. If you ever exceed this ceiling and only in this very specific case, the excess will appear next year on your tax notice, and you will be able to carry it forward to subsequent years for 5 years.
How does the 1000 euro ceiling apply?
You give, at the end of October, 700 euros at Restos du curorganization giving entitlement to the 75% reduction, 500 euros Doctors Without Borders (75% reduction, again) and 600 euros the League against cancerdonation benefiting from the 66% reduction.
In the 2024 declaration of 2023 income, you will have to indicate the sum of 1200 euros in case 7UD for donations to organizations helping people in difficulty and specify an amount of 600 euros in case 7UF for sums paid to organizations of general interest. The amount taken into account by the tax authorities for the reduction 75% will be of 1000 eurosand that retained for the reduction 66% will be of 800 eurosthe fraction above the ceiling declared in box 7UD being automatically transferred to the sum declared in box 7UF.
You will benefit from a total reduction of 1278 euros of the amount of your 2023 tax on income for the year 2023, for 1800 euros of donations in total. THE net tax cost of these donations comes back to you 522 eurosan argument that associations often put forward.
Taxes and donations: the winners and losers of the 1000 euro ceiling
Withholding at source: the timetable for the reduction
Your 2024 withholding tax rate (applied since September 2023) does not take into account your 2023 donations… But the tax reduction is not lost! You will be able to declare your donations in the income tax return in the spring, and tax balance d on your resources from the previous year will be regularized when summer 2024.
The tax administration will also advance you 60% of the credits and tax reductions mid-January 2024. This advance is calculated on the basis of the tax paid in 2023, therefore on 2022 income. For example, if you make your first donations in 2023, you will not benefit from the deposit in January 2024, but you will receive the full reduction in summer 2024 then the deposit in January 2025.
A 75% reduction if you pay the IFI
For taxpayers subject to real estate wealth tax (IFI), the applicable reduction rises to 75% regardless of the organization concerned: aid to the most deprived or general interest association (but excluding donations to unions and political parties). Any donation to charity reduces their IFI by 75% of the amount donated. This specific tax reduction is capped at 50,000 euros. Taxpayers must obviously choose to use their donation for income tax (IR) or IFI: the same donation cannot benefit from a double tax advantage. On the other hand, a household can make IR donations on the one hand and IFI donations on the other.
Taxes: credit or reduction? Why has everything changed!
Donations to unions and political parties: two categories
Donating to a political party or union entitles you to an equivalent tax advantage 66% of the payment. For the donations to political parties, the annual ceiling is 15,000 euros per tax household. These payments entitle you to tax reduction.
THE union dueson the other hand, entitle one to tax credit! In other words, if you pay 200 euros to an employee union in 2023 and you are not taxable, the tax authorities will pay you a tax credit of 132 euros in 2024. On the other hand, the amount of union contributions taken into account cannot be taken into account. exceed 1% of your salaries or pensions.
Up to 1174 euros lost! These 5 tax credits and reductions that you forget to claim
Who gives, and how much?
The generosity of the French is seasonal, as France Génosits explains in its 2023 barometer. In 2022 41% of donations in value are made over the last 3 months of the year and only 23% of annual donations are concentrated in the month of December alone!
According to data from the tax administration taken by the Research & Solidarity studypublished in November 2022, on average donation declared for the year 2021 was 591 eurosan increasing average (570 in 2020, 550 euros in 2019 and 507 euros in 2018) partly due to the cap raised to 1000 euros for the 75% tax reduction.
The Recherches & Solidarits study recalls that the tax reduction only benefits tax-taxed households. Consequently, the share of tax households is preponderant in these declarations (approximately the three quarters of donor households and amounts). A quarter of donors are therefore non-taxablegiving selflessly without seeking a tax advantage in return.
The study also shows that older households give more: those under 30 represent 4% of the donor population, compared to 15% of those in their forties and 34% of over 70 years old. The youngest declare an average donation of 365 euros, compared to 636 euros per year for seniors.
The 15 associations that receive the most donations
Here are the top 15 collections carried out in 2021, dominated for the second consecutive year by the Restos du Cœur, after years of domination by the AFM-Tlethon.
- Restaurants from the heart (75% off)
- French association against myopathies – AFM (66% off)
- Catholic relief Caritas (75% reduction for the association, 66% for the foundation)
- Red Cross (75% off)
- Doctors Without Borders (75% off)
- Unicef (75% off)
- National Cancer League (66% off)
- Action against Hunger (75% off)
- Doctors of the world (75% off)
- Islamic Relief France, or SIF (75% off)
- Abb Pierre Foundation (75% off)
- Apprentices of Auteuil (75% off)
- International handicap (75% off)
- People Relief (75% off)
- Animal protection society, or SPA (66% off)
Source: Recherches & Solidarits study, November 2022
(1) More precisely, the legislation allows a tax reduction of 75% for non-profit organizations which provide free meals to people in difficulty, which help to promote their housing or which, principally, provide free meals care (…) of people in difficulty.
(2) works or organizations of a philanthropic, cultural, educational, scientific, press or even social nature. The main condition for the association to be recognized as being of general interest is that it does not carry out a lucrative activity and that it does not operate for the benefit of a restricted circle of individuals.