In France, the tax authorities encourage donations by individuals and companies by enabling them to claim a tax deduction on donations to charitable organizations and foundations.
Individuals can enjoy a tax reduction of 66% of the amount you donate, up to a maximum of 20% of your taxable income. If you exceed this limit, you can carry forward the excess amount over the next five years.
Companies can enjoy a corporate tax reduction of 60% of their donations, up to a maximum of 0.5‰ of their annual turnover. If you exceed this limit, you can carry over the excess for the payment of taxes due in the next five financial years. You can even carry a loss year over. Companies subject to income tax enjoy the same tax benefit. This tax reduction mechanism applies to cash donations, in-kind donations (gifts of movable property or shares, for example) as well as skill-based sponsorship. This attractive tax system also governs the level of benefits that may be enjoyed in return for the donation: the benefits must not exceed 25% of the value of the donation.