Béatrice de Durfort Déléguée générale du Centre Français des Fondations

1. Béatrice de DurfortDéléguée générale du Centre Français des Fondations Corporate foundations in France29 February 2008 – Polish Donors forum Conference

2. The French Foundation centre • By law an association • 140 members sharing the same « brand » : the capacity to be called Foundation in France is protected by law – 1987 (pre-required legal validation) • Our members = 15% of the active field _ annual growth of the centre : > + 10%

3. Quick overview of foundations in France • Main definition of Foundations : • Non for profit and un-refundable gift of wealth, rights, royalties, funds or ressources for a purpose of public interest and common good (article 18 de la loi du 23rd July 1987) •  I.e. does not include Trusts… • They are, and remain, Non For Profit Organisations. • As so, they enjoy tax benefits • Ie : no tax on endowment related income; no tax on commercial income under 60.000 €/yr, etc… • and provide tax benefits to corporate and private donors • Corporate : tax credit equal to 60% of the amount given by a company to a foundation • Private : Tax credit equal to 66% of the amount given on income tax or 75% of the amount of the gift on solidarity tax on wealth.

4. Quick overview of foundations in France • One concept : six different statutes ! • the original ( law : 23 July 1987) : the “Fondation reconnue d’utilité publique” FRUP (created by a Prime ministers’ decree), +/- 507 active foundations. It enjoys full legal capacity and provides maximum tax reductions for donors; 25 of theses foundations have the capacity to shelter other foundations acting in their field of activity. • Fondations abritées (FA) : sheltered foundations they benefit all the advantages of their umbrella foundations but have no legal entity of their own, +/- 800 in France but increasing sector; (created by contract with the umbrella foundation) • Fondation d’entreprise (FE) : Corporate foundation (163 on 01/07/2007); creation for a minimum of 5 years with minimum income of 150.000 € spared over the 5 years; capacity to extend beyond 5 yrs. Created by prefectorial decree, not intitled to receive private wills or donations, unless from corporate staff. Subsidiary companies of a group may join to co-fund a FE

5. Quick overview of foundations in France • Fondation de coopération scientifique (FCS) - foundations for scientific cooperation created by the law on Research issued in March 2006. Foundation dedicated to the research field to enable create programmes of excellence between laboratories, universities, private sector etc…), time limited foundations; 11. • Two latest statutes created by the law on University autonomy and responsibility, summer 2007: • Fondations Universitaires : University foundations (sheltered by a university, no legal existence of itself, very deregulatory system.. No example yet • Fondations Partenariales : Foundation in partnership benefits all the capacity of a FRUP but with less control (all funding possible including private wills and donations) as it takes its model on FE (time limited, public and private funding…); no example yet.

6. The only legal body allowed to found or co-found any of these 6 types of foundations are FIRMS • So they face a strategic choice according to : • Different ways to operate • Different ways to involve stakeholders and participate in the governance • Different levels of “hands-on” /autonomy • Means and expectations of the company / foundation’s purpose

8. Corporate foundations GROTH FROM 2001 TO 2007 : +164% • A recent sector (average groth of foundation sector +30%) • trend of laws and tax incentives issued since 2003 has strong impact on the sector • the corporate field investigates all the legal frameworks they may use to set up a foundation. • CORPORATE INVESTMENT IN FOUNDATIONS does not limit itself to the “CORPORATE FOUNDATIONS”

9. Elements of typology • I. Foundations in close relation with their corporate funders • The name of the funder shows in the name of the foundation (internal and external communication purpose) • Teams and financial resources are very dependant on the firm • Mainly they act as Donors, but more and more they add strong implication or collaboration of their teams to the designation of the beneficiaries and helping them set up their missions (identifying programmes, coaching, sharing – expertise, pro-bono work, etc…) • II. Foundations that show more distance and autonomy towards their corporate funders • Multiple funders; causing less stress and implication of each of them • General field of research on subjects of general interest to a branch (i.e: Institut de la gestion déléguée, fondation de recherche pour l’aéronautique et de l’espace) • Operating foundations, running hospitals, schools… (long term commitment, i.e. Fondation Caisses d’Epargne pour la solidarité)

10. 177Corporate Foundations 368 corporate funded foundations (out of 1448 Foundations in France) 69 FRUP 21 FCS (Scientifc cooperation foundation) 87Sheltered foundations Figures at November 2007

11. I. Foundations in close relation with their corporate fundersResources other Corporate funding

12. I. Foundations in close relation with their corporate fundersA growing sector Laws 2002-3 Law 1990

13. Fondations created in 1980 TO 1991 76.5 1991 TO 1996 1996- 2001 2001 -2004 2004 TO 2007 ALL TOGETHER France 80 53 47.5 58 Other than Paris region 23.5 20 36 47 52.5 42 I. Foundations in close relation with their corporate fundersAll geographic regions concerned 64

14. I. Corporate foundations tend to start small, and grow as confidence comes… 2004 engagement annuel des 20 nouvelles fondations : 390 K€ budget moyen de l’ensemble des fondations: 608 K€ 2005 engagement annuel des 24 nouvelles fondations : 338 K€ budget moyen de l’ensemble des fondations : 770 K€

15. Breakdown of foundations created by firms, according to annual spending in 2004 <50 K€ 25% de 50 à moins de 100 K€ 9% de 100 à moins de 200 K€ 14% de 200 à moins de 500 K€ 16% de 500 à moins de 1000 K€ 14% de 1000 à moins de 5000 K€ 20% > 5000 K€ 1% Total 100% I. 2004: major disparities in foundations capacity and size

16. Operating foundation Operating and donor Donors foundations I. Foundations in close relation with their corporate funders SPENDINGD (FE& FA) •  Total spending 116 million €, •  out of which 106 millions grants, awards, scholarships.

17. Arts and culture others Health and medical research Social services I. Breakdown of corporate Foundations spending 23 % of fondations 40 % of fondations 16 % of fondations 21 % of fondations 40 % « target » children and youth programmes 66% act at National level

18. II. corporate foundations « enlarged philanthropy » A SECOND WIND NUMBER OF ENLARGED PHILANTHROPY CORPORATE FOUNDATIONS CREATED

19. II. Specificity of these corporate foundations « Enlarged philanthropy »(2004 figures) • Size : Average annual spending in 2004 > 5.000.000 € • Employment : 30 % employ more than 5 people • Statute : 85 % are RUP reconnues d’utilité publique (emerging trend since 2006 FCS, and University foundations) • Generally co-funded by one or several firms (74) 32 % individual funder 44 % associations or other NGOs 21 % State or collectivity

20. II. Specificity of these foundations Greater diversity in Income resources Public funding 31% Others 11% Grants and Fundraising 26% Generated Income and fees 32%

21. 30 % des fondations Sciences 41 % fondations others 16% des fondations 13 % fondations Social services II.Break down of these corporate foundations « enlarged philanthropy » Spending Health and medical research • Total spending : 277 millions € in 2004 • But 7 foundations exclusively created by a single corporate founder • Have spent 84 millions € in 2004

22. Les statistiques présentées ici ont été élaborées à partir du corpus d’information collecté et traité par l’Observatoire de la Fondation de France. Ils concernent 1011 fondations actives à ce jour. (collecte info 2006 -2007) Nous exprimons toute notre gratitude à Odile de Laurens et Viviane Tchernonog, chargée de recherche au CNRS.

23. MERCI