Corporate philanthropy in France: tax credit, caps and evidence requirements (2026)

Last updated 25 May 2026 — reviewed by Samuel Hayot, chartered accountant (expert-comptable). This article provides general information; specific situations require a review of your documents and current legislation.

Making a donation to a French association can unlock a substantial tax credit for your company. But the mécénat (corporate philanthropy) regime under Article 238 bis of the Code général des impôts (CGI) is more demanding than it first appears: eligible organisations, the critical distinction between mécénat and sponsoring (sponsorship), valuing in-kind gifts, the CERFA 11580*04 fiscal receipt, and the five-year carryforward — each step can make or break the file.

Quick answer: the tax credit is 60% on donations up to €2,000,000 and 40% above that threshold, capped at the higher of €20,000 or 5‰ of annual turnover (excl. VAT). Unused credit carries forward over the five following financial years. These rates apply only to donations to organisations meeting the strict public-interest criteria set out in the BOFiP.

The regime is governed principally by Article 238 bis of the Code général des impôts and detailed in the BOFiP (BOI-BIC-RICI-20-30). The Aillagon Law of 1 August 2003 on mécénat broadened the scope of eligible beneficiaries, and successive Finance Acts have adjusted the caps since. The rates in force from 1 January 2026 are those introduced by the 2020 Finance Act, confirmed at the date of publication — verify any subsequent change on legifrance.gouv.fr.

Not every non-profit qualifies. The tax authority distinguishes three main categories:

• General-interest organisations: associations under the 1901 Law, foundations and endowment funds (fonds de dotation) pursuing philanthropic, educational, scientific, social, humanitarian, sporting, family or cultural objectives, with a disinterested management structure;
• Foundations and associations recognised as being of public utility (RUP);
• Approved organisations: humanitarian NGOs, higher-education institutions, research bodies, national museums (musées de France), etc.

Key practical point: a registered French association is not automatically eligible. The company must verify that the organisation meets the BOFiP criteria. For significant or unusual beneficiaries, a prior tax ruling (rescrit fiscal under Article L. 80 B of the Tax Procedure Code) is the safest course of action where there is any doubt.

The annual cap is the higher of:

• €20,000; or
• 5‰ (five per thousand) of annual turnover, excl. VAT.

What this means in practice: for a company with €5 million turnover (excl. VAT), the cap is €25,000 (5‰ × €5,000,000). If it pays out €30,000, the credit is calculated on €25,000 (i.e. €15,000 tax credit), and the excess €5,000 carries forward to the next five financial years.

Take a SARL (société à responsabilité limitée) subject to corporate tax (IS), with turnover (excl. VAT) of €5,000,000 for the 2025 financial year.

• Donation paid to an eligible association: €30,000
• Applicable cap: max(€20,000; 5‰ × €5,000,000) = €25,000
• IS tax credit: 60% × €25,000 = €15,000
• Carryforward excess: €30,000 − €25,000 = €5,000 (to be applied against the cap in each of the five following years)

The actual net cost borne by the company on the in-cap donation of €25,000 is therefore €25,000 − €15,000 = €10,000. The donation remains a genuine financial commitment — it is not fiscally neutral — but its effective cost is significantly reduced.

Confusing mécénat with sponsoring is the most common error in the files we review. The table below maps the operational differences:

Our reading: sponsorship is not fiscally inferior. A direct deduction from taxable profit may be more valuable than a tax credit depending on the company's effective IS rate, its profit position and its capacity to absorb the credit in the year. The firm can model both options before you commit to either route.

Three forms qualify under Article 238 bis CGI:

1. Cash donation: payment by bank transfer or cheque to the recipient organisation. The simplest to document and the easiest to defend at audit.

2. In-kind gift: transfer of assets (equipment, stock, vehicles, etc.). The value used is generally the net book value or market value — the method adopted must be documented clearly. If the asset was subject to VAT on purchase, the initial input VAT deduction may require a regularisation adjustment on disposal.

3. Skill-based support (mécénat de compétences): secondment of an employee to an eligible organisation during normal working hours. The value equals the employee's salary costs plus associated employer social charges. A written tripartite agreement between the company, the employee and the recipient organisation is essential.

A robust file requires at minimum:

• A valid CERFA n° 11580*04 receipt issued by the beneficiary organisation, dated and signed;
• Beneficiary identification (SIREN number, registered purpose, contact details);
• Proof of payment (bank statement, transfer confirmation, delivery note for in-kind gifts);
• For in-kind gifts: the valuation method adopted, stock exit slip or formal handover record;
• For skill-based support: the secondment agreement, timesheets, and employee consent.

Without a valid CERFA, the tax credit cannot be maintained at audit. The recipient organisation bears legal liability if it issues a receipt that is not justified.

The donation is posted to account 6238 (or 6713, depending on the company's chart of accounts) — not to an ordinary operating expense account. The corresponding tax credit is deducted from the IS liability on the tax return (form 2065). Any carryforward balance is tracked on a supplementary schedule and declared each year until fully applied.

The underestimated risk: inadequate multi-year tracking of the carryforward. Some executives discover several financial years later that they have lost the benefit of a carryforward simply because it was not carried through successive tax filings with adequate documentation.

Based on published BOFiP guidance (BOI-BIC-RICI-20-30), typical audit focus areas include:

• Whether the beneficiary organisation is genuinely eligible (disinterested management, no dominant profit-making activity);
• Whether the date of payment falls within the relevant financial year;
• Consistency between the declared nature of the donation and the documents produced;
• Existence and validity of the CERFA 11580*04;
• Absence of any direct material or commercial benefit to the company.

A client — a management consultancy with around ten staff — seconded a senior consultant for ten days to support a professional integration association. The director had spontaneously posted the value to account 6238 and declared the corresponding tax credit.

During the annual review, we found that there was no secondment agreement and no CERFA receipt. The association, acting in good faith, had not formalised the receipt. The result: the tax credit had to be abandoned for that financial year. The association subsequently corrected its procedures; the client put in place an internal process triggered from the moment a donation is decided, and the following years were handled without issue.

The lesson: the decision to donate and the collection of supporting documents must happen at the same time — not afterwards.

• The 2026 Finance Act has not modified the 60%/40% rates or the caps at the date of publication of this article — confirm the current position on legifrance.gouv.fr.
• A prior tax ruling (rescrit fiscal under Art. L. 80 B of the Tax Procedure Code) remains available to confirm the eligibility of an organisation before a significant donation.
• For recently established corporate foundations (fondations d'entreprise) and endowment funds (fonds de dotation), verifying the approval status is essential.
• Donations between related companies or to subsidiaries are not eligible for the mécénat regime.

1. Identify the beneficiary and verify its eligibility: legal status, public-interest character, disinterested management.
2. Qualify the transaction: mécénat, sponsoring or communication expense? The answer determines the tax and accounting treatment.
3. Calculate the impact on the current-year cap and the potential carryforward.
4. Formalise the donation before payment: written agreement, secondment protocol where applicable.
5. Obtain the signed CERFA 11580*04 at the time of the donation or payment — not subsequently.
6. Post to account 6238 and note the tax credit to be declared on form 2065.
7. Archive the complete file for a minimum of six years.

For a broader view of managing your company's French tax position, see our guide on corporate tax planning and our article on mandatory tax filings for companies in 2026.

Sources: Article 238 bis CGI (legifrance.gouv.fr), BOFiP BOI-BIC-RICI-20-30 (bofip.impots.gouv.fr), Service-Public entreprises (entreprendre.service-public.fr), impots.gouv.fr. Rates and thresholds are those in force at the update date shown — verify any subsequent legislative change.