France Considering Measures to Promote Charitable Giving

In an effort to promote charitable giving and the creation of foundations, the French government has proposed a dozen measures to increase incentives and reduce restrictions on philanthropic activities.

The proposals, which follow similar measures approved by Germany in 2000 and the United Kingdom last year, are intended to bring French law more in line with that of other Western countries by lowering some of the administrative barriers that have constrained giving.

Several of the measures are aimed at increasing giving by individuals. They include raising limits on the tax deductibility of donations, for example, and allowing deductions for large gifts to be spread out over five years.

Other proposals would increase tax deductions for gifts by corporations, and would allow employees to receive tax deductions for gifts to foundations set up by their own companies.

Foundation Rules

Still other measures are meant to encourage the formation of foundations, of which France has only about 2,000. The proposals would shorten the period in which the government can consider an application for foundation status, for instance, and allow more flexibility in how such institutions choose to organize themselves.

The French Parliament must approve the taxation measures, but the government is already putting in place the other proposals.