Did you know you can get 33.3% back on donations to schools, charities and churches?
Many New Zealanders contribute to schools, charities, and churches, often without realising they can receive a tax rebate for their generosity. This article will explore the ins and outs of school rebates and charitable donations, helping you understand how you can benefit.
What are they?
School rebates are a form of tax relief designed to encourage donations to educational institutions and charitable organisations. Charitable donations refer to gifts/contributions made to organisations that are registered as charities under New Zealand law. These donations are typically given voluntarily and without expectation of direct personal benefit.
In New Zealand, for every donation you make, you are able to claim 33.3% back as a tax credit if the entity donated to is on the Approved Donee Organisations list. You can claim up to four years previous if you haven’t already done so. These donations involve donations made to schools, registered charities, and churches. Not all not-for-profits are on the approved Donee Organisations list but for those that we cannot claim the 33.3% rebate, businesses are able to deduct this as an expense from their taxable income.
Eligibility
The eligibility for claiming these rebates extends to both individuals and businesses that make qualifying donations.
Below are the types of donations that qualify:
Cash Donations: Contributions to school fundraisers or charity events.
Goods Donations: Donating items like books, computers, or sports equipment to schools.
Service Donations: Providing professional services pro bono, such as legal or accounting advice to a registered charity.
Other criteria:
Charity must be on the Approved Donee Organisations list (see link below)
Donations made have to be over $5 NZD to qualify for tax credits.
How to claim?
Collect receipts: Keep records of all your donations, including receipts and acknowledgements from the receiving organisation.
Fill out tax forms: Complete the necessary tax forms to claim your rebate. This typically includes the IR526 form for donations.
Submit by Deadlines: Ensure you submit your claims before the tax return deadlines to qualify for rebates.
What are the benefits?
It provides financial advantages to families and businesses but also contributes significantly to the community. Increased funding from these donations can enhance educational programs, support local charities, and ultimately improve the lives of many.
Conclusion
We encourage you to take advantage of the rebates available for your charitable donations. By claiming these refunds, you not only benefit financially but also contribute to the betterment of your community and its educational resources.
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