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UK charities and non-profit organisation – how can you collect gifts in France since Brexit ?

Since January 1st, 2021, Brexit is a reality and UK charities and non-profit organisations receiving gifts can no longer provide tax acknowledgments to French residents and other EU State members or EEE members residents, as it was the case since 2009 on the basis of Persche case.

Indeed charitable actions carried out outside the EU can no longer benefit from the sponsorship regime of member states. Pursuant to French tax legislation, the sponsorship scheme remains available for actions carried out outside the EU only in the following fields : humanitarian actions, showcase of French artistic heritage, French culture, langague and scientific knowledge, natural environment protection and scientific actions.

TGE, a private network of foundations across Europe, remains an option to consider to make cross-border gifts and donations, giving rise to tax acknowledgments in France.

UK charities and non-profit organisations can also consider different ways to be present in France and to raise funds :

  • setting up a permanent establishment to carry out part of its activities in France, and maintaining close tights with the EU, without legal personality,
  • setting up a local non-profit organisation (simple and quick as creating an association, a fonds de dotation) in France and allowing access to EU grants and tax benefits pursuant to French tax law…

Multiple solutions exist to avoid the adverse effects of Brexit, do not hesitate to contact us for more information on the foregoing.