Can a company deduct a donation made to an association?

Yes: a company that makes a donation to an eligible association benefits from a tax reduction, just like an individual, but under different rules. This scheme is called corporate patronage and is based on article 238 bis of the French General Tax Code (CGI), whereas donations from individuals fall under article 200 of the same code.

The reduction is 60% of the amount given, up to the higher of €20,000 and 0.5% of the company's turnover. Your association's eligibility does not change depending on whether the donor is a person or a company: the same authorisation for tax receipts covers both cases.

Corporate patronage, a scheme separate from that for individuals

Corporate patronage means that a company supports a general-interest body without expecting any real counterpart in return. This is what distinguishes it from sponsorship, where the company funds an activity in exchange for advertising visibility: in that second case, the expense can be deducted as a business cost, but it does not give entitlement to the patronage tax reduction.

All companies can take part in patronage, whatever their size: companies subject to corporation tax, but also sole traders and self-employed people subject to income tax under the category of industrial and commercial profits or non-commercial profits. A shopkeeper, a craftsperson or a freelance professional who supports your association is therefore entitled to it in the same way as a large company.

The donation can take three forms:

• a payment in cash, the most common case on Donoor;
• a donation in kind: equipment, goods, provision of premises;
• a provision of skills: the working time of an employee made available to the association, for example.

For a donation in kind or in skills, the amount taken into account is the book value of the item or the cost of the service for the company, not its selling price.

To qualify for the reduction, your association must meet the same conditions as for individual donations: disinterested management, a main activity that is not for profit, no operation for the benefit of a restricted circle of people, and a purpose falling into a category recognised by law (social, cultural, humanitarian, religious, sporting, among others).

The applicable rate and ceiling

The rate and ceiling are not the same for an individual donor and for a corporate patron:

Beyond the threshold of two million euros of donations in the year, the rate therefore falls to 40% for the portion exceeding that threshold. One exception exists: donations made to certain bodies that provide meals, accommodation or care free of charge to people in difficulty remain at 60%, with no limit on the amount. The details of this rule are set out in the official bulletin of public finances.

Good to know: if the donation exceeds the ceiling for the financial year, the excess is not lost: the company can use it over the following five financial years, within the ceiling of each of those years.

How the company declares its tax reduction

The company enters the total of its donations on form no. 2069-RCI-SD, attached to its annual accounts return. It does not need to attach its tax receipts to its return, but must keep them: the tax authorities may ask for them during an audit.

What Donoor provides for a company donation

On Donoor, a company donation is paid just like a standard donation: the company, or the person acting on its behalf, pays from your fundraising page, your payment link or your QR code, entering the name and address to appear on the receipt. As soon as your association has activated tax receipts and the donation is marked as tax-deductible, Donoor automatically generates and sends a tax receipt for the amount paid, without any action on your part. You can find each donation and its receipt under Fundraising › Donations, where each line opens a Donation details page.

Important: since 1 January 2022, the law distinguishes between the document to be given to an individual donor and the one to be given to a corporate patron. If your association regularly receives company donations, ask your accountant or tax adviser to check that the particulars on the receipts you send match what the law requires for this type of donor.

To find out more about activating and the content of receipts, see how tax receipts work and their compliance. The Tax receipts page of the site presents the service as a whole.

Key takeaways

• A company that gives to an eligible association benefits from a 60% tax reduction (patronage, article 238 bis of the CGI), compared with 66% or 75% for an individual's donation (article 200 of the CGI).
• The annual ceiling is the higher of €20,000 and 0.5% of turnover; beyond two million euros of donations in the year, the rate drops to 40% on the excess portion.
• All companies can benefit, including sole traders and self-employed people.
• Your association's eligibility for tax receipts is the same for individuals and companies: a single authorisation to activate.
• The company declares its reduction on form 2069-RCI-SD attached to its annual accounts return, and must keep its tax receipts in case of an audit.