The parliament definitively adopted, a few days ago, the law relating to the SSE (social and solidarity economy) following the government bill. This bill aimed to support a specific way of undertaking and to highlight the decisive contribution of the SSE to the deeply rooted solidarities in the social life of our country, as well as to the creation of wealth in France.
It is an important recognition of the associative sector and its weight in the economic and social life.
What are the new measures and advancements?
The funding for associations is diversified and secured legally. New tools are being implemented to encourage the development of associations. Support for voluntary and volunteer engagement in associations is reaffirmed. The government is authorized to introduce by ordinance the necessary measures to create a “simplification shock” for associations.
The actors of the social economy have often led the creation of services and activities because they identified new needs, defined the conditions for a collective and mutualized response, and organized the financial viability of this response. Alongside mutual societies and cooperatives, associations represent about 80% of the jobs in the SSE sector.
The main provisions concerning associations
*The legal and financial framework:*
1. Grants are defined by law for the first time. This secures the 550,000 grants awarded each year by the State or local authorities and offers an alternative to the abusive use of public procurement procedures.
2. The legal capacity of associations is increased: associations recognized as being of public utility could, with some exceptions, possess or acquire only those real estate properties necessary for their purpose, while being able to receive the same types of properties as gifts and legacies. When they received these gifts and legacies, they were obliged to sell them, sometimes unfavorably, even though managing them could be a source of income for the associations. The law aligns these two rules by allowing associations recognized as being of public utility to acquire and manage income-generating properties and more broadly to carry out all civil life actions that their statutes do not prohibit. On their part, declared associations can receive and retain real estate, including income-generating ones, by donation (either while living or through legacy).
3. Associative titles are made more attractive to strengthen the equity of associations: the liquidity and remuneration arrangements of the new title are adjusted. It is redeemable after a minimum period of seven years if equity reaches the nominal issue amount. The freely negotiated remuneration rate is increased.
4. The merger of associations benefits from a clear and secure legal framework for both associations and third parties. The tax doctrine adapts to the new legal regime of mergers and allows the application of the deferred taxation regime on capital gains for mergers between associations.
Tools for the development of associations:
1. Local support mechanisms (DLA) are made permanent in the SSE law: it acknowledges their complementary role to association networks and groupings in supporting SSE structures by formalizing their existence.
2. Territorial funds may eventually be supplemented by those associations wishing to undertake shared projects in training or research and development, in addition to the Fund for the Development of Associative Life (FDVA).
3. Guarantee funds for contributions in associative funds are created to improve the cash flow of associations. Associations can receive equity contributions, guaranteed by a fund that ensures contributors can reclaim their contribution at the set deadline, regardless of the financial situation of the beneficiary association.
4. Associations can now create training funds to accompany the qualification of sector’s volunteer leaders, in complement to the Fund for the Development of Associative Life (FDVA).
Support for engagement:
1. The government will submit to the parliament a report on the evaluation of the existing leave provisions to promote voluntary engagement in associations and on the creation of engagement leave for serving in volunteer association roles.
2. Article 65 of the law promotes the validation of acquired volunteer experience, particularly by allowing associations to provide an assessment to the concerned juries when the request comes from a volunteer member of an association.
3. Associative volunteering replaces civic service volunteering for those over 25 years old, to reignite adult engagement.
4. The “Public Interest Group” (GIP) “Civic Service Agency” is made permanent. This measure is part of the government’s commitment to developing civic service by 2017 and dedicating significant new resources to it.
