Published on: March 16, 2025 | Article No: 315 | By: @rprasanth_kumar
Donating is a powerful way to support meaningful causes while reducing your tax burden. With the right planning, you can maximize your impact and tax benefits. It can also help to reduce your income tax in France. The amount of your tax reduction depends on the type of association you support. Let’s review the rules, tax calculations, and how to declare your donations.
Keywords: Réduction d’impot, déduction fiscale, don à une association and Loi Coluche.
Note: The idea behind this article is to promote donations to non-profit associations & get a tax reduction as a byproduct. It’s not written to promote tax reduction as the primary activity and the donation as an afterthought.
Which Associations are eligible?
To qualify for a tax reduction, donations must go to organizations that meet the following criteria:
✅ Non-profit status (but non lucratif).
✅ Socially beneficial purpose (philanthropic, educational, scientific, social, humanitarian, cultural, etc.).
✅ No private benefit to a limited group of people.
Some examples of eligible organizations include:
- Charities supporting the homeless, providing free meals, or medical aid.
- Cultural and educational organizations.
- Environmental protection groups.
- Associations fighting against domestic violence.
- Foundations for heritage conservation and restoration.
Types of Donations that qualify
Eligible donations include:
✅ Monetary contributions.
✅ Donating property or goods.
✅ Offering free services or facilities to an association
✅ Reimbursable expenses voluntarily waived by volunteers.
Absence of Counterparty Benefits for Donations
To qualify for a tax reduction, your donation must be without any compensation. So, you cannot receive any goods or services in exchange. However, certain minor advantages do not disqualify a donation:
- Membership fees that grant rights like voting at general meetings or receiving newsletters are not considered counterparty benefits.
- If you receive low-value items (such as greeting cards, badges, etc.), their total value must not exceed 25% of your donation amount, with a maximum limit of €65 per year.
- Example: If you donate €300, the maximum allowable value of items you receive in return should not exceed €65.
Note: I have come across some Associations giving a reçu fiscal for annual membership payments and then offering certain benefits including monetary. This is not a good practice. Personally, I declare only the actual donations that I have done in Line 7UF and not include any membership fees.
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How to calculate your Tax Reduction?
1. Donations to General Interest Organizations
- 66% tax reduction of the donated amount.
- Limit: 20% of your taxable income.
Example: If you donate €100, you can receive a tax reduction of €66.
2. Donations to Organizations helping those in need
- 75% tax reduction for donations up to €1,000 per year.
- Any amount above €1,000 gets a 66% tax reduction.
- Limit: 20% of taxable income.
Example: If you donate €1,200, your tax reduction is:
- 75% of €1,000 = €750
- 66% of €200 = €132
- Total tax reduction = €882
3. Donations for Heritage Conservation
- 75% tax reduction up to €1,000 per year.
- Applies to donations for restoring religious buildings in small towns (<10,000 people in France, <20,000 in overseas territories).
Example: If you donate €1,500, you get:
- 75% of €1,000 = €750
- 66% of €500 = €330
- Total tax reduction = €1,080
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How to declare your Donations?
Declare your donations on your annual income tax return using the annexure tax form 2042 RICI and the main tax form 2042.
✅ General interest organizations: Enter the total amount in Box 7UF. For example: Association Indian Community Toulouse via Donate to build option.
✅ Organizations helping those in need: Enter the amount in Box 7UD. For example: Les Restos du Cœur via Faire un don option.
✅ Heritage conservation (religious buildings): Enter the amount in Box 7UJ.
✅ Donations to EU-based organizations: Enter in Box 7VA or Box 7VC, depending on the nature of the organization.
Note:
- If your donations exceed 20% of your taxable income, the surplus can be carried forward for up to five years.
- Ensure that the organizations that you choose to donate are transparent about their finances.
Do you need Proof of Donation?
✅ You don’t need to attach receipts to your income tax declaration in France, but you must keep donation receipts issued by the association in case of an audit.
✅ Associations issue a reçu fiscal (tax receipt) immediately after a donation or the following January. Keep these documents safe for at least 5 years.
Advance Payment on Tax Reduction
✅ If you benefited from a donation related tax reduction last year, you may receive an advance payment in January (60% of the previous year’s reduction).
✅ The balance will be adjusted after you submit your income tax declaration.
Support This Blog!
If you’ve found my articles helpful and you want to say thanks, a cup of coffee or two is very much appreciated!. Please help keep it going!
Sources & References 📕
DISCLAIMER
Any finance-related information shared is not professional legal, tax, or investment advice. The information provided is of an educational and general nature and is not investment advice within the meaning of Articles L. 321-1 and D. 321-1 of the French Monetary and Financial Code. Investment carries risks of loss and past performance does not guarantee future performance. Please consult a financial advisor for any professional advice.