Are you missing out on a valid tax deduction? Are you one of the many generous Kiwi’s who donate to charity each year? Are you one of the generous people who forget to claim for that donation??? You do know that you can claim can claim the lesser of 33.3333% of the total donations you’ve made, or 33.3333% of your taxable income?????

Did you know that the vast majority of NZ’s who make donations do not claim back their tax credit!!!!

That’s right, if you donate to an approved charity or approved donee organisation (list can be searched on the IRD site) then you can claim a tax credit (previously known as rebate) on the amount of your donation. Better in your pocket than the IRD’s unless you wish to consider this a donation to the IRD, however they’re not an approved charity!!

How do I get this money back I hear you say! Well you need a receipt for $5 or more which shows:

  • the name of the donor(s)
  • the amount and date of the donation
  • a clear statement that it is a donation
  • a clear statement at the top of the page if the donation is a payroll giving donation
  • the signature of an authorised person, and
  • an official stamp with the name of the approved donee organisation

(The word “copy” or “replacement” should be clearly shown on any replacement receipt)

Ok, show me the money!! Hold on sport, first you need to complete an IR526 (downloadable from the IRD site), fill it out totalling your donations and attaching your receipts (keep a photocopy of the receipts for your records). There are maximum amounts you can claim which are based upon individual claims however if one partner has donated more than the maximum amount, their partner can claim the balance (up to their maximum amount).

Is that it??? No there is some fine print, there must be no identifiable direct benefit to you or your family (i.e. you get nothing in return for the donation), have sufficient taxable income during the year in which you’re claiming, were resident in NZ at any time in that tax year & are not a company, trust or partnership.

If you think this whole donation thing is a great idea and want to become an approved done organisation then have a read of the IRD booklet Charitable organisations (IR255).

So if you are making donations, make sure you get a receipt and check that they are approved and make sure you get that tax credit!!!