The Local Corporate Endowement adopted in the Anti-poverty Plan
Anti-poverty Plan: Emmanuel Macron announces the launch of the Local Corporate Endowment for the mobilization of corporations against poverty
Today, Emmanuel Macron has announced the content of the Anti-poverty plan. Among the selected measures, the Local Corporate Endowment, a concept initiated by Break Poverty Foundation.
This program which has already been successfully tested on a specific territory, opens the path to a more responsible economy and proposes a new company engagement in the prevention and fight against poverty among young people. The goal is to encourage companies to attribute up to 2 % of their net result towards programs that fight poverty and the exclusion of young adults on the same local territory as the company’s. This endowment would benefit from the same fiscal advantages as current company donations.
According to the INSEE, France has 8.9 million people living under the poverty line and 26% of the households where the person of reference is under 30 years old are poor. One in every five children is born poor.
Everywhere in France, actors of the social sector are developing new and innovative methods to respond to the magnitude of these challenges. However, without the appropriate means, their ambition and actions are limited. The moment has arrived to create the conditions for a fundamental change and to reinvent our social model.
LOCAL CORPORATE ENDOWMENT: A NEW COMMITMENT BY COMPANIES IN THE FIGHT AGAINST POVERTY
The French President has announced an ambitious plan to fight against poverty. Among the selected measures, the Local Corporate Endowment, a program created by Break Poverty Foundation to mobilize companies to fight against poverty and the exclusion of young people.
This Local Corporate Endowment against poverty will consist of a voluntary allocation of up to 2% of a company’s net result towards programs that fight poverty and the exclusion of young adults on the same local territory as the company’s.
The particularity of this endowment is that the company would select, on their own, the projects of their choice in order to help the most destitute, specifically children and young adults on their territory
This endowment would also be subject to the fiscal advantages under the Aillagon law, which allows companies to benefit from a 60% tax reduction on the amount donated. The expense for the company would thus only represent 0,8% of their net result.
A SUCCESSFULLY TESTED PROGRAM
Break Poverty Foundation tested this program in the city Romans sur Isère, where poverty statistics are close to twice the national average. The results of the pilot program speak for themselves.
In only a few weeks after the pilot’s launch, close to 200,000€ have already been collected. In total, it is close to 1 million euros that could be invested over 3 years to finance these projects which would benefit more than 1 000 children and young adults amongst the most vulnerable of the city.
Far from being a strain to companies, the Local Corporate Endowment must be perceived as an investment for the future of their territory. According to Denis Metzger, Break Poverty Foundation’s President, «No company wins in a world that loses. Confronted by the increasing pauperization in the French society and of its young generations, the Local Endowment Fund will favor the mobilization of companies and foster new local partnerships to eradicate poverty.