Contributions to charitable foundations—French tax perspective

Abstract

Gifting assets to foreign charitable foundations could constitute a taxable event in France under French gift or inheritance tax. Such gifts thus require careful planning, as, depending on the localization and nature of that foreign charitable foundation, they might be taxed in France and hence jeopardize the initially intended charitable project, at least from the standpoint of its financing. Assessing whether the charitable project would indeed qualify for French preferential tax rules, requires a good understanding of both the respective foreign charitable institution and its French counterpart.