The patronage of individuals
Individuals who make a donation to a charity or organization of general interest receive an income tax reduction equal to 66% of payments, within the annual limit of 20% of taxable income (Art. 200- CGI).
In addition, if the limit of 20 % of income is exceeded, the benefit of the reduction may be carried forward to the Next 5 years.
Ex. 1: an individual makes a donation of 200 € to an association working in the cultural field. For the year of the donation, he will receive a 66% tax reduction, €132. The actual cost of his donation will be €68.
Ex. 2: Another individual has a taxable income of €50,000. In Year A, they make a donation of
€15,000 for a cultural structure. This amount exceeds the 20% threshold of €5,000.
For Year A, he will benefit from a 66% tax cut up to €10,000, or
He will carry the €5,000 surplus over to year B, which will give him an advantage at the same rate, €3,300.
Over two years, the cumulative reduction will be €9,900, which corresponds to a tax benefit equal to 66% of the donation. The actual cost of his donation will therefore be €5,100.
Please note that donations can be cash, but also in-kind donations (for example, artwork).
Counterparties are a benefit to the donor in addition to the tax reduction. The value of these counterparties must remain in a ratio of 1 to 4 with the amount of the donation, up to the €65.
Ex: an individual making a donation of €100 will be able to benefit from €25 of compensation corresponding to the delivery of «good menus» (catalogue, pins, greeting cards,...). However, the consideration of an individual making a donation of €1,000 may not exceed €65.