The generosity market - France (2023)

1.2 The global market

Culture and habits differ from one country to another, so the act of giving is also more or less deeply rooted depending on the region. Overall, we can see that the number of donors is on the rise. Indeed, the proportion of the world's population who are donors has risen from **% in **** to **% in ****.

Evolution of the proportion of the world's population making a monetary donation World, ****-****, in [***]

since ****, there has been a clear upward trend in generosity. The share of the world's population making a donation in **** has in fact reached a record **%, i.e. over *.* billion donors.

Indonesia is the world's most generous country, with **% of its population donating in ****. Burma and the Netherlands complete the podium, with donor rates of **% and **% respectively in the same year.

Ranking of the world's ten most generous nations, **** World, ****, in CAF

Although the amount of each donation is unknown, we can assume that it varies according to a country's level of development. In addition, other indices such as the fact of helping an unknown person, or the amount of time spent volunteering, tell us something about a country's level of generosity. Taking all these indices together, the three most generous nations ...

1.3 The French market

Individual donations

According to the Baromètre de la Générosité **** published by France Générosités, the amount of donations declared by taxed and non-taxed households in France stood at **** million euros. The *% increase in donations by individuals in **** leads us to a total collection of ****.** million euros for this year.

Evolution of total donations declared by taxed and non-taxed households France, **** - ****, in millions of euros Direction Générale des Finances Publiques, Traitement Recherches et Générosités Corporate donations More and more French companies are becoming corporate sponsors, motivated in part by the fact that this practice entitles them to corporate tax reductions.

Evolution of corporate philanthropy France, **** - ****, in millions of euros and thousands of companies Direction Générale des Finances Publiques, Admical processing The number of companies involved in corporate philanthropy rose steadily over the decade ****-**** (***). There were ***,*** corporate sponsors in ****, around three times as many as in ****. Likewise, the amount of donations has risen sharply, doubling in just ** years. If we add to these figures (***) an estimate of undeclared donations, based on surveys of French people, it is possible to give an idea of the total amount of donations ...

2.1 The French and collecting donations

The generosity market is special in that demand refers to the individuals and companies who make donations. Donors therefore embody the demand side of the generosity market.

Breakdown of one-off donations by amount France, ****, in euros and as a % of total donations

larger amounts account for an essential share of total one-off donations, and the French seem to be increasingly favoring this option, to the detriment of smaller donations. Whereas small donations accounted for **% of total donations in ****, they will account for just **.*% in ****. Between **** and ****, small donations fell by *.*%.

Change in the average amount of donations declared annually France, **** - ****, in constant euros **** Direction générale des Finances publiques, Traitement Recherches & Solidarités.

While new donors are becoming increasingly rare, as we saw earlier, French donors are becoming increasingly generous. The average donation in constant **** euros has risen by almost *** euros in the space of eight years.

Although direct debit donations account for **.*% of donations received by associations and foundations, a figure that is rising sharply (***), the number of new donors per organization fell by **.*% between **** and ****. French people's willingness to make medium- and long-term donations is therefore less strong than it used to be[***].

Furthermore, a correlation can ...

2.2 Cyclical determinants of demand

Donors are sensitive to a country's economic situation, and make more or less donations depending on the current situation in the region. Health, economic and geopolitical factors can all have an impact on donations, and consequently on the generosity market. The pandemic, for example, was the source of an unprecedented surge of generosity. In fact, five healthcare organizations alone raised more than *** million euros in ****, most of which was donated in March[***]. The table below shows the amounts raised by the five organizations during the pandemic.

Source: ****

Donations were therefore particularly high and numerous during the health crisis, even if, as the Cour des Comptes points out, the beneficiary associations lacked clarity with regard to the "causes targeted by the collection".

With regard to the macro-economic determinants of the generosity market, we can mention inflation, which has a major influence on French donations. The graph below shows inflation trends in France since ****.

Inflation trend France, **** - ****, in Source: ****

Inflation has been particularly high since the start of the war in Ukraine, and has led to a loss of purchasing power for the French. As a result, French consumers have to cope with soaring prices, and are unable to allocate the same ...

2.3 Cyclical determinants of demand

Every year, we see a significant increase in donations in the last quarter of the year. The graph below illustrates this cyclical phenomenon.

Share of one-off and direct debit donations by quarter France, ****, in France Générosités

looking even more closely, we see that of the **% collected in the last quarter, **% of donations are made in December. This can be explained by the fact that, in the run-up to the festive season, the French are more inclined to give because the context is favorable.

2.4 Affective determinants of demand

Like individuals in general, the French each have a different sensitivity to the causes defended by associations. Naturally, they don't all give to the same associations, and the amount of each donation differs according to the beneficiary association and the cause it supports. The graph below illustrates the proportion of donors in each field of activity.

Donors by field of activity France, ****, in Source: INJEP

the sectors that attract the most donors are social, health and environmental. In ****, a quarter of French people over the age of ** said they had made a donation to an association in the social sector.

Beyond the sector itself, certain associations are also more or less attractive to the French. Donation levels vary greatly from one association to another. Recherches & Solidarités has compiled a table of the ** largest donations in ****, excluding bequests and corporate donations.

Ranking of the ** biggest fundraisers, excluding bequests and corporate donations,France, **** Restos du Coeur * Abbé Pierre Foundation for housing the underprivileged ** Fondation Notre Dame ** ** million friends foundation ** French Muscular Dystrophy Association (***) * Apprentis d'auteuil ** SOS Children's Villages ** Fondation du Patrimoine ** Secours Catholique (***) * Handicap International - Association ** SNSM ** WWF Foundation ** Red Cross * Secours populaire ** Monastery Foundation ** APF France Handicap ** Médecins Sans ...

3.1 Overview of the non-profit sector and the generosity market

There will be between *.* and *.* million associations in action in ****, of which **,*** were created during the year[***].

Distribution of associations by sector of activity France, **** - ****, as % of total Source: ****

Sports and cultural associations alone account for over a third of French associations. The leisure sector completes the podium. On the other hand, associations committed to the environment represent just *% of the French associative fabric, despite the importance of contemporary ecological issues.

In all, there are **.* million volunteers involved in the French associative landscape, ***,*** civic service volunteers, *.*** million salaried employees and **,*** work-study students (***). The proportion of women in the voluntary sector is extremely high. They are over-represented, at **%, whereas in the private sector as a whole they account for just **%. Today, it is estimated that almost **% of associations are run entirely by volunteers. The associative sector employs almost a tenth of all salaried workers in the private sector[***].

The diagram below describes the interactions in the generosity market, from donation to tax declaration, for both donor and recipient.

Source: ****

3.2 Change in the number of players

Since ****, the number of associations created each year has remained broadly unchanged.

Change in the number of associations created France, **** - ****, in thousands of companies Source: ****

on average, some **,*** companies have been created each year over the past ** years. Between July **** and June ****, half of all associations created were in the entertainment sector, whether related to culture (***).

The number of volunteers performing civic service has risen sharply since ****, providing further insight into the changing structure of the French associative fabric.

Evolution of the number of volunteers having completed a mission during the year France, **** - ****, in thousands Source: Civic Service Agency despite a significant drop in the number of volunteers in ****, caused by multiple confinements, civic service has rapidly attracted new applicants in ****, resuming the strong growth momentum begun in ****.

Although many associations are created each year, as demonstrated in *.*, many associations also disappear, particularly those that employ people.

Change in the number of employing associations France, **** - ****, in thousands Source: URSSAF and MSA, R&S processing as a result, the structure of the French associative fabric is constantly evolving, with employing associations springing up and disappearing in a wide variety of sectors.

4.1 Overview of traditional donation drives

As described in the introduction, there are currently three ways of donating to associations and foundations. These are manual donations, gifts and bequests. Donations are generally collected in the form of manual gifts, and more specifically in the form of cash donations. A particular feature of the donation offer is that it is not systematically expressed by associations and foundations, which do not necessarily solicit the donations they receive. However, many of them do make repeated appeals for donations, usingintensive marketing to solicit the generosity of the French. The techniques employed include mailings, gifts and street collections. In ****, nearly *** million items of mail were sent out by associations and foundations in France[***].

Street collections

Old-fashioned but as effective as ever, this technique is being used more and more because it helps find loyal donors. There are even service providers who employ employees from outside the associations to recruit new donors. For example, the NGO Greenpeace, a pioneer in street collections, collects * million euros a year using this technique, i.e. **% of its income[***].

Television charity events

Created in ****, the Telethon is one of the world's leading television charity events. It is organized every year by the French Muscular Dystrophy Association (***) to ...

4.2 New supply trends: digital fundraising and Generosity Day

With the rise of online donation collection platforms such as HelloAsso and Leetchi, the generosity market is experiencing a real revival. In fact, HelloAsso alone counted ***,*** registered organizations in ****. In the same year, ***.* million euros were raised using the platform's tools, and over *.** million payments were made for associations on the site. The total amount raised on the site's crowdfunding platform came to **,***,*** euros. A total of **,*** crowdfunding campaigns were created in ****, and **,*** campaigns received at least one payment (regardless of their creation date[***]. The company takes no commission on donations.

Focus on Giving Tuesday

Originating in the United States in ****, this is the World Day of Generosity and Solidarity. It takes place on the Tuesday following Thanksgiving, "in response to the commercial events of Black Friday and Cyber Monday" [***]. The aim of the day is simple: to celebrate and encourage giving around the world. Over the years, the movement has grown to include some *** countries. A Giving Tuesday survey listed the donations collected by four collection platforms, giving us the following data:

Source: ****

4.3 New supply trends: streaming

In full expansion over the last ten years or so, the streaming referred to in this paragraph refers to the live broadcast of a streamer's content on his or her computer. It has been democratized by platforms such as Twitch, and serves the generosity market, particularly in the context of charity events designed to collect donations for an association. The Telethon, for example, has seized on this new collection channel, creating the Telethon Gaming. Bringing together partners, youtubers, streamers, artists and influencers, the Digital Telethon consists in broadcasting gaming for ** hours non-stop, soliciting the generosity of viewers to collect as many donations as possible.

The best-known charity streaming event, however, is ZEvent. Created by Adrien Nougaret and Alexandre Noucharet, this charity project is a "video game streaming marathon during which numerous specialized animators gather throughout the weekend." Throughout the ** hours of streaming, participants encourage viewers to get involved in supporting a charity. This charity changes every year.

The chart below shows the amounts raised by ZEvent over the last seven years:

Evolution of the amount raised by ZEvent France, **** - ****, in millions of euros Source: ****

the event has been gaining in popularity since its inception. Indeed, the amount raised has increased ...

5.1 Donations and tax relief

Firstly, the organizations concerned, i.e. those eligible to receive donations, must meet the following three conditions:

be non-profit-making have a corporate purpose and disinterested management not operate for the benefit of a restricted circle of individuals.

The following types of donation are eligible for tax relief:

sums of money donated to one or more associations donations in kind (***) income that individuals decide to forego in favor of associations (***) expenses incurred by volunteers in connection with their associative activities, for which they waive reimbursement.

For donations to organizations of general interest or recognized public utility, "donations give entitlement to an income tax reduction equal to **% of the amount paid, up to a limit of **% of taxable income". For donations to organizations helping people in difficulty, the reduction is **% for amounts of up to €*,***, rising to **% for fractions over €*,***. [***].

5.2 Association regulations

Associations can all receive manual donations, but only some can receive gifts and bequests. These must be declared to the prefecture. Any association receiving at least €***,*** in donations must have its accounts certified by a statutory auditor and publish its annual financial statements in the JOAFE (***).

Gifts, donations and bequests made to associations and foundations recognized as being in the public interest are subject to inheritance tax (***).

The rates applicable are those laid down for succession between brothers and sisters. Thus, for the portion of the donation below €**,***, the applicable rate is **%. For donations above this amount, the tax rate is **%. For other associations (***), the applicable rate is **% after an allowance of €*,***. However, in certain cases, gifts and bequests may be exempt from inheritance tax. This applies to donations made to certain associations recognized as being in the public interest[***].

6.1 Segmentation

• Apprentis d'Auteuil
• Médecins Sans Frontières
• Les Restos du Coeur
• Association Française contre les Myopathies
• Secours populaire
• Secours Catholique
• La Croix Rouge française