What if you could triple the impact of your generosity without increasing your planned donation? In France, the tax system not only allows you to support causes that are close to your heart, but also to benefit from significant tax advantages.
In this article, we explain how to optimise your donations to charities through tax deduction. By understanding this mechanism, you can plan your donations in such a way as to give more support to the causes that matter to you, without increasing your budget for donations.
In France, donations to eligible associations entitle you to a reduction in income tax. Here are the key points to remember:
Reduction rate: You receive a tax reduction of 66% of the amount of your donation.
Reduction limited to tax due: The tax reduction cannot exceed the amount of tax you owe. For example, if you owe €2,500 in tax and your reduction is €3,000, you will not be able to claim back the extra €500.
Limit of 20% of taxable income: The total amount of your donations eligible for tax relief cannot exceed 20% of your taxable income (typically for salaries over €45,000 gross taxable income per year).
Tip: Want to know how much you can reduce your taxes?
An experienced team of dedicated volunteers offers personalized workshops to help you calculate your potential savings. For straightforward cases—like having a single job with no other income or dependents—this handy calculator can provide you with an estimate, even if it’s approximate until the Finance Act is passed. If you need further assistance, don’t hesitate to reach out to the tax department or consult a chartered accountant for expert guidance!
Annual taxable income: €30,000
Donation made: €2,400 (i.e. less than 20% of taxable income)
Tax reduction: 66% of €2,400 = €1,584
Tax due before reduction: Assume €1,600
Tax after reduction: €1,600 – €1,584 = €16
You benefit fully from the reduction, as it does not exceed 20% of your taxable income or your tax due.
Obtaining a tax receipt: Once you have made your donation, the association will automatically issue you with a tax receipt certifying the amount paid.
Declaring your donations: When you file your tax return, enter the total amount of your donations in the appropriate box: Box 7UF for 66% donations.
Keep your receipts: Keep your tax receipts safe for four years in case you are audited by the tax authorities. Associations you donate to also keep copies.
Suppose you plan to donate €100 to an eligible charity. Thanks to the 66% tax reduction, the state reimburses you €66 in the form of tax relief. This means your €100 donation truly only costs you €34.
However, you might not have realized that this donation actually enhances your purchasing power. Since your €100 donation effectively costs you €34, you can leverage this tax benefit to donate even more. By donating €300, your net cost would still be just €102, thanks to the tax relief, allowing you to make a more significant impact without straining your budget!
Amount of donation: €300
Tax reduction: 66% of €300 = €198
Actual cost after tax reduction: €300 – €198 = €102
So, by increasing your donation to €300, your planned expenditure remains unchanged, but the association receives three times as much support. You triple the impact of your generosity without any additional financial effort.
Some charities can help many more people with the same donation. Mieux Donner recommends high-impact charities, some of which are eligible for tax relief in France:
The first associations are recognised for their exceptional effectiveness in reducing poverty and saving lives, thereby contributing to a fairer world, and the Good Food Institute for its positive effects on the climate and animals.
Important note: The other charities we recommend are not currently eligible for tax relief in France, as they do not have an office in France. However, they are among the most effective in the world.
Our recommendations prioritize the impact of a charity over its tax status. In fact, the remarkable results achieved by these organizations often outweigh the absence of tax relief. During our personalized donation advice sessions—offered free of charge—we can help you explore additional options tailored to your specific situation, ensuring you make the most meaningful contribution possible.
By understanding the tax reduction mechanism, you can :
Increase your donations at no extra cost: As seen in the example, you can triple your initial donation by declaring it without adding to your actual expenses.
Support high-impact causes: By choosing effective charities, your donation will have an even greater impact.
Optimise your budget: By taking advantage of tax benefits, you can combine generosity with intelligent management of your finances.
No, you can only benefit from the tax reduction if you make donations to eligible charities. These are generally associations recognised as being of public utility or general interest.
The charity must be authorised to issue tax receipts. You can check this on their website or by contacting them directly.
The tax reduction for donations made in 2024 will be applied to your tax notice following your tax return in April 2025. It will reduce the amount of tax you have to pay for the 2024 tax year.
This does not change the withholding tax. However, if the government owes you anything, it will settle the amount at the same time as the withholding tax, in August of the following year, by means of a bank transfer.
If you donate in 2024 for the first time, you will not receive an advance on your tax reduction in January 2025; you will have to wait for the regularisation in August 2025. But in January 2026, the government will assume that you donated a similar amount in 2025 and you will receive an advance payment of 60% of the tax reduction resulting from your donations in 2024 in anticipation of the regularisation in August 2026 (regardless of the amount of your donations in 2025).
Yes, and it’s all the more attractive because the reduction is 75% of the amount of the donation, up to a limit of €50,000. You can therefore declare up to €66,667 of donations in box 9NC of your IFI return. These donations do not have to be carried forward to your tax return.
Please note that donations to the Good Food Institute can be used to reduce your income tax, but not your wealth tax.
Tax deductions for donations to associations are planned and budgeted by the State. This mechanism is designed to encourage support for associations of general interest that carry out essential missions for society. The State considers that the social and economic benefits generated by these associations more than compensate for the loss of tax revenue. If one day the tax deductions represent too great a burden on the national budget, the State may decide to amend the legislation accordingly.
This article details the issues and presents the figures.
If you don’t pay tax, unfortunately you can’t benefit from the tax reduction.
However, there is a solution to increase the impact of your generosity:
Imagine that someone close to you is thinking of giving you a gift of €100. Instead, suggest that they donate €300 to an charity in their name. After the tax reduction of €198, the real cost to your loved one will be €102. The charity will receive three times as much support.
Note: The information presented is based on the tax legislation in force in 2024 prior to the new Finance Act. For personalised advice, we recommend that you consult tax specialists or the tax authorities.
If you have any questions or would like to speak to Jennifer or Romain for advice on giving, please don't hesitate to get in touch.
