Taxation: Three More Years for Coluche Donations

An amendment to the budget bill extended the eligibility for a tax deduction through 2026 for so-called "Coluche" donations.

These donations are intended for organizations that help the most vulnerable people. But what is the tax deduction percentage, and what is the donation limit? Here are the details.
 

The precarious financial situation of the Restaurants du Cœur was highlighted by Patrice Douret, the organization’s volunteer president, last September. Faced with a significant increase in the number of meals distributed, a call for help was issued, and several prominent figures—including Minister of Solidarity and Families Aurore Bergé and LVMH CEO Bernard Arnault—responded by pledging substantial donations.
 

Members of Parliament also responded by adopting an amendment to the budget bill proposed by Representative Stella Dupont. This amendment extends the tax deduction for so-called “Coluche” donations through 2026. It maintains the increased income tax deduction limit for donations to organizations that assist the most disadvantaged for a period of three years.
 

"Coluche" donations refer to contributions made to nonprofit organizations that provide assistance to people in need, particularly in the form of meals, medical care, or housing. These donations qualify for a tax deduction equal to 75% of the amount donated.
 

Since 2020 and the COVID-19 health crisis, the tax deduction rate for "Coluche" donations has been increased to 75%, with a cap of 1,000 euros. This means it is possible to receive up to 750 euros in tax deductions. Previously, the cap was set at 552 euros. For donations exceeding 1,000 euros, a 66% tax deduction is available, up to a limit of 20% of the donor’s taxable income.
 

To qualify for this tax deduction, it is essential to keep the tax receipt provided by the organization receiving the donation. The tax authorities may request this document in the event of an audit. When filing your tax return, donations to organizations must be reported in the appropriate box; for example, donations to Restos du Cœur should be reported in box 7UD. It is crucial to distinguish between a tax deduction and a tax credit, as the latter entitles you to a refund if the amount exceeds the tax owed or if no tax is due.