Gifts, donations and bequests to an association

The donation or the bequest shall be carried out by authentic instrument or by privately signed document.

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

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

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

• Associations of general interest declared for at least 3 years with a philanthropic, educational, scientific, social, humanitarian, sporting, family or cultural character, or contributing to the promotion of the artistic heritage, the defense of the natural environment or the dissemination of French culture, language and scientific knowledge
• Associations for the exclusive purpose of scientific or medical assistance, charity or research, declared before 31 July 2014 and which have before that date accepted a gift or a bequest
• Associations of Alsace-Moselle registered in the Register of Associations
• Associations and foundations recognized as being of public benefit
• Religious associations and public institutions of Alsace-Moselle worship
• Unions approved by family associations

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

The application shall be accompanied by the following documents:

• Statutes of the association
• Surname, forenames, occupation, domicile and nationality of the directors
• Current year's provisional budget and annual accounts for the last 3 financial years closed or, if the association has been established for less than 3 years, accounts for the financial years closed since its date of creation
• Any document establishing that the association falls within one of the categories of associations authorized to receive donations and bequests
• In the case of religious associations, any document establishing that the association fulfills the conditions required to be classified as religious associations

Three possible hypotheses can be considered later:

• The prefect makes a decision favorable. It is valid 5 years.
• The prefect is considering responding unfavorable. It shall inform the association thereof and invite it to submit its comments within 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 benefit from donations and bequests. The association can then ask the prefect for a certificate of implicit decision of acceptance.

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

Donation

When it's a donation, it's at the beneficiary association the person responsible for making the declaration.

Legacies

When it comes to a legacy, it's the notary responsible for settling the succession which makes the declaration after informing the beneficiary association.

The declaration duty be on free paper, by registered post with acknowledgement of receipt.

It must be accompanied by the following documents:

• Copy of the notarial deed or will
• Copies of the association's articles of association, of the decision to approve them and of the witness for publication in the JOAFE: titleContent
• Justification for acceptance of the gift or legacy and, if applicable, justification of the association's ability to perform its duties or meet its conditions, taking into account its purpose
• Current year's provisional budget and annual accounts for the last 3 financial years ended or, if the association has been established for less than 3 years, annual accounts for the financial years ended since its date of establishment
• Any document establishing that the association falls within one of the categories of associations authorized to receive donations or bequests
• For religious associations, any document establishing that the association fulfills the conditions required to be classified as a cultural association.

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

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

If no decision is taken within 4 months of receipt of the declaration, there shall be no objection to acceptance of the gift or legacy. The association can then ask the prefect for a certificate of implicit decision ofacceptance.

Gifts, gifts and bequests made to associations and foundations recognized as being in the public interest are subject to inheritance tax (known as transfer duty free of charge).

The rates applicable are those laid down 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 gift exceeding that amount shall be taxed at 45%.

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

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

• Public or recognized institutions of public utility which intervene either to carry out activities of a philanthropic, educational, scientific, social, humanitarian, sporting, family or cultural nature, or which contribute to the promotion of the artistic heritage, the defense of the natural environment or the dissemination of French culture, language or scientific knowledge, or to carry out concrete actions in favor of press pluralism
• Charitable public establishments, mutual societies and organizations supporting charitable or charitable organizations, the defense of the natural environment, or the protection of animals
• Public institutions or businesses involved in the building of monuments to the dead of war or to the glory of armies.

Certain associations which have legal personality (i.e. which have formed a group and which have the possibility to act legally: to enter into contracts, to take legal action) open the possibility for donors or legatees to benefit from exemption from transfer duties free of charge. To do so, these donations and bequests must relate to one of the following cases:

• Works of art intended to form part of a collection, monuments or objects of a historical character, books, printed matter or manuscripts
• Associations declared for at least three years on the date of receipt of the grant 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 objects of a historical character
• Donations or bequests to religious associations

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

Any association which benefits from at least €153,000 gifts and bequests of natural persons or moral giving rise to a tax advantage for the benefit of donors shall:

• have his accounts certified by an auditor,
• and publish its annual accounts to the JOAFE: titleContent.

She duty transmit its annual accounts and the auditor's report electronically to the Directorate for Legal and Administrative Information (Dila) in the 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.

These documents shall be available to the public free of charge.