Corporate giving (mécénat) lets a company support a cause of general interest while benefiting from a tax reduction. For the beneficiary organisation, it entails precise obligations.
For the donor company
Donations to eligible organisations give a tax reduction, calculated on the amount donated within a ceiling. The rate and ceilings are set by law and can change. Donations can be in cash, in kind or in skills.
For the beneficiary organisation
It must be eligible given its purpose and management, issue compliant receipts and, in some cases, declare the amounts received. In case of doubt, a ruling procedure (rescrit) lets it ask the tax authorities.
Points to watch
- Benefits in return granted to the donor must remain well below the value of the donation (marked disproportion).
- The valuation of donations in kind and in skills must be supported.
- The distinction from sponsorship, which follows a commercial logic and a different regime.
Common mistakes
- Giving to a non-eligible organisation without checking: the tax reduction can be challenged.
- Granting disproportionate benefits in return: visibility, invitations, services.
- Misvaluing a donation in kind or in skills: it is valued at cost, with supporting documents.
- Forgetting filing obligations when donations exceed the thresholds.
Our support
For companies: calculation and monitoring of the tax reduction, filing formalities. For associations: eligibility review, tax receipts, presentation of accounts. See associations
Frequently asked questions
Can an association always issue tax receipts?
No. It must meet conditions relating to its purpose, its disinterested management and the absence of a restricted circle of beneficiaries.
What if the donation exceeds the ceiling?
The excess can, under conditions, be carried forward to the following financial years.
Corporate giving or sponsorship?
Sponsorship involves proportionate advertising in return: it is a deductible expense, but does not give a tax reduction.
Is skills-based giving possible?
Yes: a company can make employees available free of charge. Valuation is based on their cost, within the limits provided.
Must donations received be declared?
Some organisations must declare each year the amount of donations giving a tax reduction and the number of receipts issued.