In France, donations to organizations of general interest, associations, and non-profit foundations recognized as being of public benefit, such as the Pasteur Institute of Lille, entitle the donor to a tax reduction. These donations constitute an essential resource for the continuation of the Pasteur Institute of Lille's mission, namely research, information, and prevention related to infectious, inflammatory, and cardiovascular diseases, Alzheimer's disease, cancer, and diabetes.
Tax deductions in brief
All taxable person can benefit from tax deductions, also called rtax deductions ou tax cutsThis involves a partial or total exemption from the amount due under a tax (income tax, corporation tax, real estate wealth tax, etc.), corresponding either to the percentage of a donation paid by the taxpayer to an eligible structure, such as the Pasteur Institute of Lille, or to a reduction of the tax base used to calculate the tax, such as through the temporary donation of usufruct.
Whether it is a donation or cash donation When made to an association or foundation recognized as being of public utility, this gesture constitutes a double opportunity for the donor: that of supporting a cause that is close to their heart, such as research against diseases carried out by the Pasteur Institute of Lille, and that of significantly reducing their tax.
Different types of donations may qualify for tax benefits: one-off donations regular donationsor donations. The amount of the reduction depends on the tax in question, the type of organization to which the donation is made, and its amount. To benefit from it, the donor must declare the payments made on their tax return.
Tax deduction for donations to associations and foundations
Tax reduction for individual donations
Individuals wishing to support the Pasteur Institute of Lille are eligible for a tax deduction on Income Tax (IR) and on Real Estate Wealth Tax (IFI).
Donors subject to Income Tax can benefit from a tax reduction equivalent to 66% of the amount of the donation, up to a limit of 20% of taxable income.
Donors subject toReal Estate Wealth Tax can benefit from a tax reduction of up to 75% of the amount of the donation, up to a limit of €50,000 deducted, i.e. a donation of €66,667.
As a reminder, taxpayers owning a real estate with a net taxable value exceeding 1,3 million euros on January 1st of the tax year.
Tax deduction for corporate donations
Donations made by companies liable for Corporate Tax (IS) and individual companies subject to Income Tax for the benefit of associations or foundations recognized as being of public utility may also be eligible for a significant tax reduction.
Companies subject to Corporation Tax (IS) can benefit from a tax reduction of 60% of the donation amount, up to a limit of €20,000, or 0,5% of their pre-tax revenue if this amount exceeds €20,000. The 2020 Finance Act amended the rules for corporate philanthropy, raising this limit from €10,000 to €20,000. Donations exceeding €2 million are eligible for a 40% tax reduction.
Examples of tax reduction calculations
These tax deductions make it possible to make donations at a lower cost.
For example, a donation of €2000 This actually amounts to:
- For an individual or a sole proprietorship subject to income tax:
- Amount that can be deducted from income tax: 2000 x 0.66 = €1320
- The gift therefore only benefits : 2000 – 1320 = €680
- For an individual subject to the French Wealth Tax (IFI):
- Amount that can be deducted from income tax: 2000 x 0.75 = €1500
- The donation therefore only benefits: 2000 - 1500 = €500
- for a company subject to corporate income tax:
- Amount that can be deducted from income tax: 2000 x 0.6 = €1200
- The donation therefore only benefits: 2000 - 1200 = €800
How to make a tax-deductible donation to an association or foundation?
Donation options are flexible, allowing each donor to express their generosity. You can make a regular donation by setting up a direct debit, or opt for a one-time gift. Whichever type of donation you choose, it can be made online or by mail. The Institut Pasteur Lille will send you a tax receipt as soon as possible, which you can present to the relevant authorities in the event of an audit.
Note: You are not required to provide your tax return with your tax statement. Therefore, you can make your donation at the last minute, as your tax receipt will only be required in the event of an audit. To obtain it, contact the organization(s) to which you made your donation; they will send it to you electronically or by mail upon request.
Donations to associations and foundations, tax reduction and withholding tax
Le withholding Income tax does not affect the tax deductions resulting from donations. In the spring, when you file your tax return, you will simply need to enter the amount of payments you made to associations or foundations before December 31 of the tax year on form 2042 RICI of your income tax return.
The tax authorities will pay you the balance of your tax reduction during the summer (the exact date varies each year).
The importance of donations for the Pasteur Institute of Lille
The Pasteur Institute of Lille is a financially independent foundation, with 75% of its resources coming from the generosity of donors. Donations made to the Pasteur Institute of Lille are directly allocated to research teams.
For more information about donations and bequests to the Foundation, please contact us at 03 20 87 79 47 or at the address donsetlegs@pasteur-lille.fr.
