How much tax relief do I get for donating to an association?
The tax relief is a tax benefit granted to taxpayers who make donations to certain associations. It reduces the amount of income tax payable.
Donations are eligible for tax relief because they support causes of general interest, such as humanitarian aid, education, medical research and many others. In this way, the State encourages philanthropy by offering tax benefits.
But how does this tax reduction work? What is the amount of tax reduction obtained after a donation to an association? What steps do you need to take to benefit from them? Action Éducation can help you find out more about the tax benefits of making a charitable donation.
Amount of income tax reduction after a donation to an association
The rate of tax reduction is generally 66 % of the amount of the donation20 % of taxable income. For example, a donation of 100 euros entitles you to a tax reduction of 66 euros. This rate applies to donations made to organisations of general interest or recognised as being of public utility as is the case for Action Éducation.
It is important to note that the tax reduction cannot exceed 20 % of the donor's taxable income.
For donations made to organisations that help people in difficulty, the tax reduction rate can be as high as 75 % up to a limit of 1,000 euros. Beyond this limit, the fraction of the donation that exceeds €1,000 entitles the donor to a tax reduction of 66 %.
For example, for a donation of 1,200 euros to such an association, the reduction will be 75 % for the first 1,000 euros, i.e. 750 euros, and 66 % for the remaining 200 euros, i.e. 132 euros. The total reduction would therefore be 882 euros.
Beyond these limits, the surplus can be carried forward to the next five years. It is important to check the specific limits for each type of tax. type of donation and association.
Eligible types of association
Associations recognised as being in the public interest
The associations recognised as being in the public interest (ARUP) are organisations whose purpose and operation are of general interest. They must receive official recognition by decree to qualify for this status. ARUPs work in a variety of fields, including education, health, social welfare, culture and many others. This is the case ofAction Education which is authorised to receive donations as well as legacies, life insurance policies and gifts, free of transfer fees. In other words, Action Education is exempt from the inheritance tax normally payable in the event of a transfer. In this way, the entirety of your donation will be used directly for our social mission.
General interest associations
Associations of general interest (AIG) are not necessarily recognised as being of public utility, but they pursue objectives of general interest, are non-profit-making and are managed on a disinterested basis. They must also meet certain conditions, such as not operating for the benefit of a restricted circle of people.
Foundations and charities
Approved foundations and charities are also eligible to enable donors to benefit from tax advantages. These organisations often work in areas such as medical research, helping people in difficulty, environmental protection and heritage preservation.
Tax-deductible donations
To be eligible for the tax reduction, donations must be disinterested and free of any consideration.
Donations and subscriptions paid to one or more associations, income that individuals decide to forego in favour of associations (such as the provision of premises free of charge), and expenses incurred by volunteers in connection with their association activities for which they forego reimbursement, are all taken into account by the tax authorities.
Donations in kind
Donations in kind, such as clothing, food or household goods, may also qualify for a tax reduction. The value of these donations must be estimated by the association and mentioned on the tax receipt.
International Donations
Donations made to associations located in the European Economic Area may also be eligible for a tax reduction, subject to certain conditions.
Donations via equity crowdfunding platforms
Donations made via crowdfunding platforms are also eligible for a tax reduction, provided that the funds are earmarked for projects of general interest.
