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France générosités is calling on the French government to introduce new emergency tax incentives that will boost philanthropy and help to reverse the long-term decline in charitable giving.
The proposal highlights the vital role of nonprofits in supporting the nation through Covid-19 and the sector’s critical need for funds in light of income shortfalls during the pandemic.
This news comes as France générosités publishes its latest study, the Generosity Barometer 2019 (Le Baromètre de la générosité 2019). The report finds that donation levels in France saw a small 3.5% uplift from 2018 to 2019, but that this was not sufficient a rise to compensate for losses linked to the changed tax framework around individual and corporate donations. As a result, the total amount received by charities in 2019 has returned to levels last seen in 2016.
Charitable giving has been falling over the years, with supporter acquisition figures dropping by 15% in the past decade. Nonprofits are now reeling from the impact of Covid-19, which put even greater pressure on charities, minimising fundraising activity and increasing the demand for services,
France generosités has proposed three new measures. These include making all charitable donations from taxpayers tax deductible during 2020 (up to 75% of the value of the gift), creating an exceptional tax credit for non-taxable donors (again, equivalent to up to 75% of the amount donated) and offering employees a day’s leave to volunteer. The proposal gives employees the flexibility to donate their volunteering day to another employee for that purpose.
Nolwenn Poupon, head of studies and communication at France générosités, says:
“Every year, 40% of donations arrive during the last three months. This final quarter is crucial for charities. So, we’re calling on government to step in and take action as soon as possible, ensuring that we have the best possible framework to encourage generosity and mobilise donors in the build-up to this critical period for donations.”
Le Baromètre de la générosité 2019
Other findings published in the 2019 study include continued growth in online donations and major giving. Online donations now account for 12% of all individual donations, while the proportion of major donors has increased fivefold in 15 years. Donations of more than €10,000 represent 10.8% of the amount of one-off donations received in 2019 compared to 8.3% in 2013.
