Making a donation to an association is a way to benefit from income in order to develop its projects and actions. As a result, to defend a cause, donation is an essential resource for an association whose purpose is non-profit. Donation is also called “manual donation” or “hand to hand”.
Which associations can benefit from it?
The associations that can receive and benefit from manual donations are all associations under the 1901 law. They are all authorised to receive donations without necessarily the intervention of a notarial deed. One of the conditions to be met is that the manual gift must be made during the donor’s lifetime because, otherwise, it would be a legacy.
It should be noted that a gift is different from a gift and a legacy. A gift is an act by which the donor delivers an asset to a donee, who accepts it. Its particularity is that it is governed by a notarial and irrevocable deed. A bequest is a gift that takes place under a will in which the donor, during his or her lifetime, has undertaken to donate his or her property once he or she has died. Finally, not all associations under the 1901 law can receive donations and legacies.
It is important to understand that the donation and the membership fee are two different payments in the life of the association. Indeed, to make a donation, the donor does not necessarily have to be a member of the association, unlike the membership fee that is paid by the members. In addition, a contribution has a certain recurrence, unlike a donation, which can be a one-time donation.
To find out more about contributions, read our article dedicated to it!
Donation and its different forms
The donation can take the form of a financial payment :
- Species
- Credit card
- Check
- Bank transfer
However, the donation can also take a different form than the payment of a sum of money:
- Loan of premises
- A workforce
- A service
And this, without compensation or registration fees.
Why make a manual donation?
The manual donation is a resource for the association, regardless of its sector of activity. Indeed, in the context of associations, income is lower and project financing can be difficult. So, donations make it possible to be the necessary financing solution to support the cause defended. For associations of general interest, it is therefore relevant to launch donation campaigns.
A public interest association is an organisation that is authorised to issue tax receipts according to the criteria of the tax authorities set out in Articles 200 and 238 bis of the General Tax Code.
For the donor too, several advantages are available to him. By donating to an association, the donor contributes to defending the common project. Also, making a donation allows you to be eligible for a tax reduction. The tax reduction is only possible in associations that issue tax receipts.
The tax receipt is the document that proves that the donation has been received. It is also a document that may be requested in the context of an audit by the tax authorities. The associations that have the power to generate tax receipts are public interest organizations or associations recognized as being of public utility.
Managing donations according to members and external people as well as the different payment methods requires time and organization. This is why eBrigade offers, within its online tool, the ideal functionality to manage donations. Everything is centralized, permanently accessible and saves a lot of time. Also, there is the possibility of automatically generating tax receipts as well as thanks to send to your donors, in a few clicks. Finally, automated and customizable reminder messages can be generated.
Declaration of donations
An association that receives donations must declare them according to the new article of January 1, 2021, Article 222 of the General Tax Code. This declaration is made through a form on the website set up by the government for this purpose. This article requires all non-profit organizations to list the donations they have received and that have resulted in the issuance of a tax receipt. This same tax receipt that could be used in the case of a tax reduction request. In the event that an association does not declare its donations, it will have to pay a fine of €1,500.
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