30 Aug 2024 The Dotation d’Action Territoriale chosen as part of the Poverty Plan
The Dotation d’Action Territoriale chosen as part of the Poverty Plan :
Emmanuel Macron announces the launch of the Dotation d’Action Territoriale to mobilize companies against poverty
Emmanuel Macron Announces the Poverty Plan
Today, Emmanuel Macron announced the details of the Poverty Plan. Among the selected measures is the launch of the Territorial Action Grant, a system designed by the Break Poverty Foundation.
This system, successfully tested in one territory, paves the way for a more responsible economy and proposes a new commitment from businesses in the prevention of youth poverty. The goal: to encourage companies to allocate up to 2% of their net income to poverty reduction projects. This system benefits from the tax advantages provided for corporate patronage.
According to INSEE, France has 8.9 million poor people, and 26% of households where the reference person is under thirty are poor. One in five children is born into poverty.
Across France, social actors are innovating and creating new approaches to address the scale of the challenges. However, due to a lack of resources, their actions remain limited in scope. The time has come to create the conditions for change and reinvent our social model.
THE TERRITORIAL ACTION GRANT: A NEW TOOL TO MOBILIZE COMPANIES AGAINST POVERTY
The President of the Republic has announced an ambitious plan to fight poverty. Among the measures included is the Territorial Action Grant, a system created by the Break Poverty Foundation to mobilize companies against youth poverty and exclusion.
This Territorial Action Grant will take the form of a voluntary allocation of up to 2% of a company’s net income, designated for poverty reduction and youth exclusion programs within the company’s own territory. The unique aspect of this grant is that the company will decide how to allocate it to projects of its choice within its territory.
This grant will benefit from the tax advantages provided by the Aillagon Law, which allows companies to enjoy a 60% tax reduction on their donation amount. The cost to the company will therefore be only 0.8% of its net income.
A SUCCESSFULLY TESTED SYSTEM
The Break Poverty Foundation tested the system in the city of Romans-sur-Isère, where poverty statistics are nearly twice the national average. The results of this pilot project speak for themselves. In just a few weeks, nearly 200,000 € was collected. In total, nearly one million euros could be invested over 3 years to fund programs that will benefit more than 1,000 of the most vulnerable young people in the city.
Far from being a burden for companies, the Territorial Action Grant should be seen as an investment in the future of their territory. According to Denis Metzger, President of Break Poverty Foundation, “No company thrives in a world that is declining. In the face of the growing impoverishment of French society and its youth, the Territorial Action Grant will mobilize businesses and foster new local alliances to eradicate poverty.
Discover the national strategy to prevent and combat poverty here