One Sector That’s Not Cheering French Tax Cuts
France's large charitable sector has been hit hard by Emmanuel Macron’s changes to the tax code.
Fewer donations.
Photographer: Nicolas Tucat/AFP/Getty Images
The French state has, at times, been as close to a nanny state as it gets. But that doesn’t mean France lacks a thriving charity and nongovernmental sector. On the contrary, France’s charity sector is massive, with some 1.3 million estimated nonprofit groups. They spend close to 3.4 percent of French GDP, and employ close to 2 million people, with 14 million volunteers, donating time equivalent to almost 1 million full-time workers, according to one study.
The nonprofit sector has been growing faster than the overall economy since the 2008 recession, in part thanks to increased public spending and in part thanks to donation tax incentives. Now that sector is under threat because of changes French President Emmanuel Macron has made to the tax code.