Donations, gifts and legacies to an association

The donation or the bequests is performed by authentic act or by act under private signature.

The donation is made during the lifetime of the donor, the bequest is made by will.

Donations and bequests granted to an association are permanently incorporated into its assets and are always made as free (i.e. without consideration).

Organizations that can accept donations or bequests, without authorization prior, are the following:

• Associations of general interest declared for at least 3 years having a philanthropic, educational, scientific, social, humanitarian, sporting, family, cultural character, or contributing to the enhancement of the artistic heritage, the defense of the natural environment or the dissemination of French culture, language and scientific knowledge
• Associations whose sole purpose is assistance, charity or scientific or medical research, declared before July 31, 2014 and which have accepted before that date a donation or a legacy
• Associations of Alsace-Moselle registered in the register of associations
• Associations and foundations recognized as being in the public interest
• Cultural Associations and public establishments of the cults of Alsace-Moselle
• Approved unions of family associations.

An association that has not received a donation or bequest for 5 years and wants to know if it falls into one of these categories can ask the prefect of the department of its head office.

The application must be accompanied by the following documents:

• Statutes of the association
• Surname, first names, profession, domicile and nationality of the directors
• Estimated budget for the current financial year and annual accounts for the last 3 financial years or, if the association has been established for less than 3 years, accounts for the financial years ended since its creation
• Any document establishing that the association falls into one of the categories of associations authorized to receive donations and bequests
• For religious associations, any document establishing that the association fulfills the conditions required to be qualified as a religious association.

3 hypotheses can be envisaged subsequently:

• The prefect issues a decision favorable. It is valid 5 years.
• The prefect plans to respond unfavorably. It shall inform the association accordingly and invite it to submit its observations in the 15 days.
• The association does not get no response within 4 months who follow his request. The silence of the administration implies that the association fulfills the conditions to receive donations and bequests. The association can then ask the prefect for a certificate of implicit decision of acceptance.

A donation or bequest granted to an association must be declared to the prefect of the department where the association has its headquarters.

Donation

When it comes to a donation, it is to the beneficiary association it itself to make the declaration.

Legacies

When it comes to a legacy, it is the notary responsible for the settlement of the estate which makes the declaration after having informed the beneficiary association.

The declaration must be made on free paper, by registered mail with acknowledgement of receipt.

It must be accompanied by the following documents:

• Copy of notarial deed or will
• Copies of the statutes of the association, of the deliberation relating to their approval and of the JOAFE: titleContent
• Justification of the acceptance of the gift or bequest and, where appropriate, justification of the ability of the association to carry out the expenses or to satisfy the conditions thereof, taking into account its purpose
• Estimated budget for the current financial year and annual accounts for the last three financial years or, if the association has been established for less than three years, annual accounts for the financial years ending since its creation
• Any document establishing that the association falls into one of the categories of associations authorized to receive donations or bequests
• For the cultural associations, any document establishing that the association fulfills the conditions required to be qualified as a cultural association.

When the prefect intends to oppose the acceptance of the gift or bequest, he informs the association (or the notary) and invites it to submit its observations within 15 days.

At the end of this period, the prefect decides, in the light of any observations of the association, whether or not to oppose the acceptance of the gift or bequest. In the event of opposition, the reasons for its decision shall be stated.

Failure to take a decision within 4 months of receipt of the declaration shall constitute failure to object to the acceptance of the gift or bequest. The association can then ask the prefect for a certificate of implied decision toacceptance.

Donations, gifts and legacies made to associations and foundations recognized as being of public utility are subject to inheritance tax (called transfer duties free of charge).

The applicable rates are those for successions between siblings. Thus, for the part of the donation less than €24,430, the applicable rate shall be 35%. Beyond that, the portion of the donation exceeding that amount is taxed at 45%.

For other associations (not recognized as being in the public interest), the applicable rate is 60% after a abatement of €1,564.

However, in some cases, gifts and bequests may be exempt from inheritance tax. These are donations made to certain associations recognized as being of public utility :

• Public or recognized institutions of public utility which are involved either in carrying out activities of a philanthropic, educational, scientific, social, humanitarian, sporting, family or cultural nature, or contributing to the enhancement of the artistic heritage, the defense of the natural environment or the dissemination of French culture, language or scientific knowledge, or in carrying out concrete actions in favor of press pluralism
• Public charitable establishments, mutual societies and organizations supporting charitable or charitable organizations, the defense of the natural environment or the protection of animals
• Public institutions or special businesses that participate in the building of war memorials or in the glory of armies.

Certain associations which have legal personality (that is to say which have formed a group and which have the possibility of acting legally: to conclude contracts, to take legal action) open the possibility for donors or legatees to benefit from exemption from transfer duties free of charge. In order to do so, these gifts and legacies must relate to one of the following cases:

• Works of art intended to form part of a collection, monuments or objects of historical character, books, printed matter or manuscripts
• Associations declared for at least 3 years on the date of receipt of the gift and which pursue an exclusive purpose of assistance and charity (foundation or congregation)
• Donations of money or real estate to enable the purchase of works of art, monuments or historical objects
• Donations or bequests to cultural associations.

The tax authorities agree to exempt donations and bequests made to associations working in the field of medical or scientific research in a disinterested manner.

Any association that benefits from at least €153,000 donations from natural persons or morals entitling donors to a tax advantage must:

• have its accounts certified by an external auditor,
• and publish its annual accounts at JOAFE: titleContent.

It must transmit its annual accounts and the auditor's report electronically to the Legal and Administrative Information Directorate (Dila) in the following 3 months following their approval by the statutory legislative body.

Publication of the annual accounts of associations, foundations and endowment funds

This publication is free of charge.

These documents are available to the public free of charge.