Non-profit organizations in France

A non-profit activity pursues an objective of general or collective interest, without seeking the distribution of profits among its members or founders.

Any surpluses may exist, but they must be reinvested in the company’s corporate purpose and statutory mission. This principle distinguishes these structures from traditional commercial companies.

In France, four main categories structure this landscape:

• The association, governed by the law of July 1, 1901.
• The foundation (including the corporate foundation and the recognized public utility foundation or FRUP).
• The scientific cooperation foundation.
• The endowment fund.

These structures benefit from a stable, controlled and internationally recognized legal framework.

The association allows at least two people, private individuals or corporate entities, to pool resources or activities for a purpose other than the sharing of profits.

A corporate foundation is created by one or more companies that commit to funding a program of action of general interest.

It has legal personality and operates on a non-profit basis.

It may engage in profit-making activities provided that their proceeds are entirely allocated to its purpose.

What are its main characteristics?

• Multi-year financial commitment from the founders.
• Minimum endowment of €150,000.
• Minimum term of five years, renewable.
• Prior authorization from the Prefecture.
• Publication in the JOAFE.
• Annual accounting obligations with the appointment of at least one auditor.

A corporate foundation is well-suited to structured and sustainable philanthropy strategies. For further information, please visit the dedicated website.

A recognized public utility foundation is a non-profit legal entity under private law, based on the irrevocable allocation of assets or resources to a work of general interest. It operates according to a patrimonial logic: the endowment constitutes capital whose income finances the mission.

 What are its main characteristics?

• Minimum endowment of at least €1.5 million, which can be paid over a maximum period of 10 years.
• Investigation period by the Ministry of the Interior.
• Opinion of the Council of State.
• Created by decree published in the Official Journal.

This status is suitable for large-scale projects that require a stable and highly regulated structure. For further information, please visit the dedicated website.

Scientific cooperation foundations support public research and higher education. They are created by several institutions, including at least one public research or higher education institution.

Their governance is generally based on:

• A board of directors.
• A director.
• A scientific advisory board.

They can benefit mainly from public funding and supplement their resources with private funds.

An endowment fund is a non-profit private legal entity intended to carry out or finance a mission of general interest.

It is a flexible tool that is quick to implement.

What are its main characteristics?

• Minimum initial endowment of €15,000.
• Declaration at the Prefecture with filing of the statutes.
• Publication in the JOAFE.
• Mandatory annual accounts.
• Appointment of an auditor when certain financial thresholds are exceeded.
• Annual transmission of financial documents and activity report to the administrative authority.

The endowment fund is particularly well-suited to philanthropic projects that require flexibility and responsiveness. For further information, please visit the dedicated website.

When the organization is eligible for sponsorship:

• Businesses can benefit from a tax reduction of 60% of the sums paid up to a limit of €20,000 or 5 parts per thousand of revenues (whichever is higher), with a reduced rate beyond a certain threshold.
• Individuals can benefit from a tax reduction of 66% of donations up to a limit of 20% of taxable income.

Specific mechanisms exist for donations to organizations that help people in difficulty.