Taxes 2023: should donations be declared to associations? We help you find your way

In 2022, according to an Ipsos survey, one in two French people said they had made a donation. If you are one of these generous donors and completing your 2023 tax return, you are eligible for a tax break. It depends on the amount paid and the association rewarded. Watch out though, the rules change in 2023!

What are the donations that allow for a reduction in taxes?

According to Service Public, the entity that entitles you to the income tax break must meet the following 3 conditions:

• It is not for profit.
• It has a social purpose and selfless management.
• It doesn’t work for the benefit of a small circle of people.

A non-exhaustive list of organizations that allow for a tax abatement can be found on the public service website.

What are the conditions for being entitled to the tax deduction?

To qualify for a tax break, you don’t need to get any compensation during your donation. For example, if your donation is a membership fee, the right to vote in a meeting does not count as consideration. If, on the other hand, you receive minor items (goodies, greeting cards, etc.), the value must not exceed a quarter of the donation amount and a maximum sum of 65% per annum.

How is this tax reduction calculated?

For your donations in 2022 for your filing in 2023, there are 4 tax breaks depending on the organization you gave a donation to:

• If it’s a general interest organisation or recognized as being of public utility, the tax reduction is 66% of the total amount of donations. Example: out of €100 of donations, the tax relief amounts to 66%.
• If it’s an organization that helps people in need (meals, treatments, accommodation), up to 1000 euros, the tax deduction is 75%. For all sums exceeding €1,000, a tax deduction of 66% must be applied to the part of the donation exceeding €1,000. For example, for a donation of €1,200, a reduction of 75% on €1,000 must be applied and the 66% on the remaining €200. If it’s an organizationhelp for victims of domestic violence (accompaniment, relocation), the same rule applies
• Finally for the cult donations (intended for a religious association), a 75% reduction is applied up to a limit of €562. In the part of the donations exceeding this limit, the reduction is reduced to 66%.

When is the tax deduction paid?

A 60% deposit was paid to you last January, based on the amount of tax abatement you received last year. The rest of the balance will be paid to you this summer.

What rule changes in 2023?

Note that next year, when declaring donations for 2023 in your 2024 declaration, all associations will be placed in the box of organizations of general interest or recognized of public utility, with the exception of organizations helping people in need. It will then be necessary to calculate according to the rules that already exist for these two categories.