Tax benefits for donations and bequests to the Procure missionnaire de l’Assomption

Donations and bequests: what are the tax benefits and how can they be optimized?

Donations and bequests offer significant tax advantages, enabling you to support causes close to your heart, such as the works of the Augustins de l’Assomption, while optimizing your tax situation. According to the French Ministry of the Economy, over 60% of donors are still unaware of the tax reductions and exemptions to which they are entitled. Is this also the case for you?

Do you know how to benefit from the tax advantages linked to your bequests and donations, what the ceilings and conditions are, or how to optimize your generosity while complying with current legislation?

1. Tax benefits of donations to the Procure missionnaire de l’Assomption

You benefit from a reduction in your income tax

Donations to associations recognized as being of public utility or declared to be of general interest, and which pursue an exclusive aim of assistance and charity (such as the Assumption Missionary Procure) entitle you to an income tax reduction of 66%, up to a limit of 20% of your taxable income.

In other words:

• For a donation of €1,000, you receive a tax reduction of €660.
• For a donation of €10,000, your tax reduction is €6,600 (if your taxable income is equal to or greater than €33,000).

However, this benefit is subject to a ceiling. So how do you calculate your tax reduction?
The tax reduction is limited to 20% of your taxable income. This is known as the ceiling? If your donation to the Procure missionnaire de l’Assomption exceeds this ceiling, the excess can be carried forward to the following 5 years.

Let’s take an example:

If your taxable income is €50,000, you can donate up to €10,000 (20% of €50,000) and benefit from a tax reduction of €6, 600.

The special case of family donations: allowances and exemptions

Donations between members of the same family benefit from taxallowances:

• Up to €100,000 per parent and child (every 15 years).
• 31,865 per grandparent and grandchild.

A parent can therefore give €100,000 to his or her child free of gift tax.

2. The tax advantages of bequests to the Procure missionnaire de l’Assomption

Bequests to associations recognized as being in the public interest and having an exclusive charitable purpose (such as the Procure missionnaire de l’Assomption) are exempt from inheritance tax.

If you bequeath €100,000 to the Procure missionnaire de l’Assomption, noinheritance tax is payable by the association.

Bequests with encumbrances and tax optimization

A bequest can be accompanied by a charge (i.e. the obligation for the legatee to pay a sum to a third party). This makes it possible to support a cause and projects while benefiting a loved one.

For example: “I bequeath €100,000 to the Procure missionnaire de l’Assomption, on condition that it pays €40,000 to my nephew”. In this case, your nephew receives €40,000 net, and the association receives €60,000. In any case, if you bequeath €100,000 to your nephew, he will have to pay €60,000 in inheritance tax and will receive €40,000 net.

3. Make the right choice with our tax comparison between gifts and bequests

4. How can you optimize your tax benefits?

You can choose to combine gifts and bequests

If you give to the Procure missionnaire de l’Assomption during your lifetime, you benefit from a tax reduction. And bequeathing after your death allows you to support this cause beyond your lifetime, without inheritance tax.

You can choose to donate €5,000 per year to the Procure missionnaire de l’Assomption (tax reduction of €3,300 per year), and bequeath €50,000 in your will.

How to use the available portion?

The ” quotité disponible ” is the portion of your estate that you can freely pass on (by gift or bequest) without harming your heirs reservataires. It depends on your family situation.

How to choose the right type of gifts?

It all depends on your wishes, your family situation, your daily needs and your means.
A gift of full ownership enables you to offer immediate support and benefit from a tax reduction. With abare ownership donation, you retain the use of your property. And a bequest represents posthumous support free of inheritance tax.

5. Tips for doing things the right way

Be careful not to exceed the ceiling of 20% of taxable income

• The mistake would be to give more than 20% of your taxable income without deferral.
• The best practice is to spread your donations over several years, or to use the 5-year carry-forward.

Don’t forget that donations must be declared

• The mistake would be not to declare your donations on your tax form.
• The best practice is to attach form 2735 to your tax return.

Not all associations are eligible for legacies

• The mistake would be to bequeath to an association that is not recognized as being of public utility or general interest, and that pursues an exclusively charitable aim.
• The best practice is to make sure that the association is eligible (e.g.: Procure missionnaire de l’Assomption).

6. Frequently asked questions