How should a religious association declare foreigner funding for worship?
Verified 05 April 2024 - Directorate for Legal and Administrative Information (Prime Minister)
A cult association that receives funding straightforward or indirect of the foreigner must declare it. Regardless of the form of the benefit or the resource, the obligation to report is imposed, as soon as the amount received, over an accounting year, exceeds €15,300. The reporting obligation applies regardless of the amount for donations notaries and bequest. To whom is the statement to be made? Can the administration oppose it? We give you the information you need to know.
The funding involved is all the benefits and all the resources in kind or in cash.
This funding may be allocated to:
- By way of donation (donation and bequest)
- By way of manual donation.
Funding may take the following forms:
- Hardware delivery of an object
- Donation of money (cash, check or wire transfer)
- Securities
- Labor loan
- Subsidized (i.e. preferred) cash loan or not
- Capital injection
- Provision of a room
- Support of expenses
The funding received directly or indirectly must be declared, including those received by a French intermediary (association, endowment fund, SCI, natural person...).
Examples:
- Provision of premises belonging to a civil real estate business (SCI) under the control, even indirect, of a foreign organization, which is used for worship. If a foreigner-funded association owns 40% of the shares of an SCI holding a place of worship, the association using the place of worship must declare it as foreigner funding.
- Free provision of a minister of worship by an association funded by a foreign organization.
FYI
volunteering performed by an individual who is not resident in France is not concerned.
Everything will depend on the location of the recipient organization and the form of the financing (donation, will or benefit obtained without notarial deed).
General case
For benefits or resources (excluding gifts)
- Cultural Association
- Association supporting the maintenance, expense and exercise of a cult, even if it has other objects (association called “mixed”)
For donations (donations made by notarial act and bequests in a will)
Alsace-Moselle
For other benefits or resources (excluding gifts)
Registered Association with Cultural Object
For donations (donations made by notarial act and bequests in a will)
- Public institution of worship
- Registered Association with Cultural Object
- Congregation
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For donations (donations made by notarial act and legacies in an estate)
All gifts (irrespective of their amount), coming directly or indirectly from the foreigner, must be declared.
The donation is declared as soon as its beneficiary (called the donee) accepted it.
The bequest is declared on the death of its author (called the testator) as soon as the notary is in possession of the will.
For other benefits or resources (excluding gifts)
Benefit or resource of more than €15,300
Any donation must be declared when:
- the benefits or resources come directly or indirectly from the foreigner
- and benefits and resources received in an accounting year (over an accounting year) are of one amount greater than €15,300.
The declaration must take place within 3 months after the threshold has been exceeded of €15,300.
Please note
Once the threshold is exceeded, any new foreigner funding received must be reported within 3 months of receipt until the end of the accounting year.
Example :
The accounting year of an association shall begin on 1er January of year N.
During the year, it receives:
- on 24 february, a foreigner funding of €5,000
- on 23 may, a foreigner funding of €6,000
- on 10 july, foreigner funding of €10,000.
The latest funding from €10,000 causes it to exceed the threshold of €15,300.
As of July 10, the association has 3 months to declare all funding received (€5,000, €6,000 and €10,000) which led it to exceed the reporting threshold.
As of July 10, any new foreigner funding received must be reported within 3 months of receipt until the end of the accounting year.
Funding commitments received over time
An association may benefit from funding commitments which are collected over time. We're talking about successive claims for enforcement.
These claims must be reported in their entirety within 3 months of 1er day on which they are collected.
Example :
An association, under the control of a foreigner body, makes available to another association a minister of worship free of charge for a period of 2 years.
This 2-year benefit represents a value above the reporting threshold of €15,300.
The association benefiting from this advantage must therefore declare within 3 months from 1er day of making available to the minister of worship the total amount of this making available granted over two years.
FYI
It is possible to make the declaration of funding one year before actually receiving the amount.
Example :
An association knows it will receive €20,000 to 1er March of year N.
It may declare this benefit in the preceding year (N-1).
It will thus be able to secure this future operation, which will take place when it already has the response of the administration.
The declaration of benefits and resources and donations made by notarial act shall be made by thebeneficiary body (as appropriate, the association, congregation or public institution of worship).
The fact that the recipient association declares the benefit does not exempt an intermediate body from also declaring the benefit if that body is subject to the reporting obligations.
The declaration of the inheritance directly or indirectly from the foreigner shall be made by the notary in charge of the succession.
Please note
Where the donation is received through an organization that has received foreigner funding, that organization shall also declare the benefit. This obligation only applies to bodies subject to reporting obligations, such as religious associations.
Example :
An association whose purpose is to assist other associations to practice worship, by making places of worship or ministers of worship available, is an association subject to the reporting obligations of foreigner funding.
When it receives benefits and assets from the foreigner, it must declare them.
The association to which it makes available benefits (grant, asset, labor, etc.) financed directly or indirectly from the foreigner is also subject to the obligations to declare these benefits.
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On the Internet
The statement shall be made to the Minister of the Interior in the following online service:
By mail
The donation (donation made by notarial act and legacy in an estate) can also be declared by registered letter with request of receipt (LRAR).
The declaration is to be sent to the Ministry of the Interior and Overseas Territories.
Who shall I contact
Where the declaration relates to an amount inferior or equal to €15,300, the information requested shall be simplified.
Where the declaration relates to an amount superior to €15,300, the information requested is more detailed. The identity of the contributor and of the persons involved in the financing and the conditions of the financing shall, in particular, be specified.
FYI
This information is intended solely for the administration and is not the subject of any public communication.
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Financing up to €15,300
The declaration shall include information on the beneficiary association:
- Name
- Address of registered office
- E-mail address
- Telephone Contact Information
The declarant's surname, first name(s), e-mail address and telephone details must also be given.
The nature (in cash or in kind), the amount and, if any, the estimated date of receipt or acquisition of the benefits and revenues derived directly or indirectly from the foreigner must be disclosed.
Funding over €15,300
The declaration shall include information on the person who granted the financing.
Where funding involves one (or more) middleman(s), the same information on (or concerning) it, depending on whether natural person or a legal person shall be indicated in the declaration.
The person is a natural person
- Name
- First name(s)
- Date and place of birth
- Nationality(ies)
- Home
- E-mail address and telephone numbers
The declaration must also contain a note explaining the arrangements for granting the benefit or resource, accompanied by a copy of the acts or contracts relating to it.
In the case of a bank transfer, the international bank account number (‘IBAN number’) or the number identifying the account which made the transfer must be specified.
The person is a legal person
- Name or business name
- Legal form
- Address of registered office
- E-mail address and telephone numbers
The declaration must also include a note explaining the arrangements for granting the benefit or resource (possibly specifying the role of the intermediary(s) involved in the financing), together with a copy of the acts or contracts relating thereto.
In the case of a bank transfer, the international bank account number (‘IBAN number’) or the number identifying the account which made the transfer must be specified.
The silence of the administration within 2 months shall be absence of opposition in the case of a reporting procedure.
However, if the complexity of the case so requires, the Minister of the Interior may extend this period for a further period of 4 months from the expiry of the initial 2-month period.
In the course of the procedure, the Minister may ask the declarant for additional information necessary for the investigation. In this case, he shall inform the declarant of the extension of the time limits for the investigation.
If, at the end of all the deadlines, the administration did not reply, it did not object to the financing.
Consideration of the statement by the Minister of the Interior
Where the Minister of the Interior intends to oppose the receipt of the benefit, resource or donation, he shall inform the declarant thereof by registered letter with request for notice of receipt (LRAR).
The declarant shall have a time limit 1 month to address the grievances presented by the Minister. At the end of this period or from the date of receipt of the declarant's reply, the Minister shall have a period of time 1 month to decide whether or not to oppose.
In the absence of a formal agreement, the minister's silence is tantamount to no opposition.
At the request of the declarant, the Minister of the Interior shall issue a certificate of the absence of opposition.
Consequence of opposition
Where the Minister decides to object to the benefit of the benefit, resource or gratuity, he shall inform the declarant of his decision, with reasons, by LRAR.
Within 2 months of the opposition decision, the declarant may challenge the decision by bringing the matter before the Minister for the Interior (ex gratia) or by bringing the matter directly before the judge (litigation).
Within 3 months of notification of the opposition decision, the declarant shall provide the minister of the interior with any evidence that the benefit or resource received has actually been returned.
FYI
The Minister may object to foreigner funding where there is actual and sufficiently serious threat affecting a fundamental interest of the business. This threat may be due to the actions of the beneficiary of the benefit, the persons involved in the financing, the contributor, or the directors or officers of the association.
The penalty depends on the nature of the offense.
Non-compliance with the reporting obligation
This offense shall be punishable by a fine of €3,750, but the amount may be increased to one quarter of the amount to which the infringement relates.
An additional penalty of confiscation of the value of the benefits and resources concerned may also be imposed by the judge.
Incomplete reporting or retention of benefit or resource
A fine of €3,750 may be pronounced in any of the following cases:
- Incomplete Declaration
- Request for additional documents or information not produced in time
- Retention of the benefit or resource.
This amount may be increased to one quarter of the amount of the infringement.
An additional penalty of confiscation of the value of the benefits and resources concerned may also be imposed by the judge.
Non-return of funding after objection by the Minister
If the financing is not returned within three months after opposition by the Minister of the Interior, a penalty of two years' imprisonment and €30,000 a fine may be imposed.
An additional penalty of confiscation of the benefits and resources concerned is possible.
Non-certification of accounts
A legal person governed by French law or a trust intermediated in foreigner financing (excluding donations) of a total annual amount of more than €15,300 must have its accounts certified.
Failure to do so shall be punishable by a penalty of €9,000 of fine.
The association that has benefited from more than €50,000foreigner funding (excluding donations) in an accounting year is also subject to an accounting certification requirement.
In the event of non-compliance with this obligation, the head or director of an association shall be liable €9,000 of fine.
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