A money pot (cagnotte) between individuals gathers gifts, not loans: contributors are not repaid, the platform must be an authorised payment provider, and any promise of repayment or interest turns the operation into a loan governed by other rules.
Money pot or loan: a clear legal distinction
Under French law, money paid into a collection pot is a don manuel, a hand-to-hand gift: it is final and creates no debt. A loan obliges the borrower to repay the sum, which calls for a written agreement, a schedule and sometimes a tax filing.
Typical uses: birthdays, medical costs, group projects
Collection pots mostly fund a shared present, a leaving party, a funeral or care not covered by the Assurance maladie, France's public health insurance. For a project that must be repaid, a family loan set out in writing beats a vague whip-round.
Who holds the money collected on a platform
Fundraising sites collect funds on behalf of others, so they must be payment institutions, electronic money institutions or agents registered with the ACPR, the French banking supervisor. The public REGAFI register lets you check that status before sharing a collection link.
How gifts received by a private person are taxed
Money received from friends or strangers counts as hand-to-hand gifts. Beyond the family allowances, gifts between people with no family tie bear high transfer duties; the details are on our page about cash gifts between individuals and the thresholds that apply.
A money pot for a recognised charity
When the collection benefits a public-interest association, the donor can receive a tax receipt giving entitlement to an income tax reduction. A personal money pot, even for a moving cause, gives the contributor no tax advantage whatsoever, whatever the organiser may claim.
The fake solidarity fundraiser, a frequent fraud
Scammers copy a photo of a sick child or a fire victim found on Facebook and set up a fictitious collection. Before giving, check that the organiser really knows the beneficiary and that a local press article confirms the story being told.
When a fake lender asks for a money pot to cover fees
Some fake private lenders ask the victim to open a money pot to gather processing or insurance fees before the loan is paid out. This scenario matches the classic private lender scams: no real loan ever arrives, and the collected money vanishes.
Promising contributors repayment: a real risk
Promising participants repayment with interest turns the money pot into collective borrowing. Soliciting the public for repayable funds is regulated crowdfunding, which requires a platform licensed by the AMF, the French market regulator, under the European crowdfunding service provider status.
Closing the pot and withdrawing the funds
When the pot closes, the organiser transfers the balance to their bank account after an identity check required by anti-money-laundering rules. Keep the platform statements: they prove where the funds came from if the bank or the tax authorities ask questions.
Fees charged by collection websites
Some sites earn money from optional tips suggested to donors, others from a commission on withdrawals or card payments. Read the terms and conditions before launching, because the amount actually available can differ from the counter shown on the page.
Dispute with the organiser of the collection
If the organiser diverts the money, contributors can file a complaint for breach of trust or fraud at the police station. The platform can freeze the funds once alerted; a consumer group such as UFC-Que Choisir helps draft the written claim.
Reporting a suspicious collection
A fraudulent money pot is reported first to the platform, then on PHAROS, the French portal for illegal online content. If money was lost, a police complaint remains essential; the full procedure is described in our guide to reporting a private loan scam.
Launching or supporting a money pot safely
- Define the aim of the collection and state in writing that contributions are non-repayable gifts.
- Choose a platform whose payment institution or agent status appears in the ACPR's REGAFI register.
- Compare fees, suggested tips and withdrawal times before opening the money pot.
- Publish an honest description naming the beneficiary and the intended use of the funds.
- Close the collection, transfer the balance to a bank account in the organiser's name and keep the statements.
- Tell participants how the money was finally used, with invoices to back it up where possible.
Costs and tax treatment of an online collection
| Item | What you need to know | Amount |
|---|---|---|
| Platform commission | Depends on the model: optional donor tip or withdrawal fee | Variable, indicative, see terms and conditions |
| Card payment fees | Sometimes passed on to the organiser | Varies by site |
| Duties on gifts between non-relatives | Hand-to-hand gifts taxable beyond legal allowances | Check with the tax office |
| Donor's tax reduction | Only if the beneficiary is a public-interest body | Per tax receipt |
| Fake money pot for loan fees | Money paid to a scammer, rarely recovered | Total loss likely |
Records to keep for a money pot
- Identity document required by the platform at withdrawal
- Bank details (RIB) of the account receiving the collected funds
- Written description of what the collection is for
- Full statement of contributions and fees deducted
- Invoices or receipts showing how the funds were used
- Tax receipts if a recognised charity is the beneficiary
Traps and warning signs with collection pots
- Giving to a collection shared by a stranger in a Facebook group with no verifiable link to the named beneficiary.
- Opening a money pot at the request of a so-called lender to pay fees before receiving a loan.
- Promising contributors repayment with interest without a licensed platform or a written loan agreement.
- Using an unknown collection site, missing from the REGAFI register, that endlessly delays the withdrawal of funds.
- Mixing money pot funds with personal spending without keeping any record of how it was used.
Your questions about money pots between individuals
Can the contributors to a money pot be paid back?
Nothing prevents you from spontaneously returning a gift, but a money pot is not designed as a loan. If repayment is planned from the start, you need a written loan agreement with each lender and, above 5 000 euros in a year, a filing on formulaire 2062 (French tax form for declaring loans).
Is money received through a collection pot taxable?
In principle it consists of hand-to-hand gifts. Between relatives, allowances apply; between unrelated people, gift duties may be due beyond certain thresholds. For a large collection, ask the tax office or a notary before spending the funds.
How can you spot a fake fundraiser?
Be wary of urgent stories with no verifiable name, photos taken from other sites and organisers who refuse to explain their link to the beneficiary. A reverse image search and direct contact with the family concerned often expose the fraud.
Can a charity use an online money pot?
Yes, many associations raise funds this way. If it serves the public interest, it issues tax receipts to donors. It must record the gifts in its accounts and report on how they were used to its members at the general meeting.