An eligible donor may claim up to 33.33 cents for every dollar that they have donated to charities, schools or other similar organisations that are approved “donee organisations
To be eligible for a tax credit, donations must be made to an approved donee organisation (as set out on www.ird.govt.nz) or school, must not be linked to any benefit to you or your family, and must not be made as part of a bequest or debt forgiveness.
You can claim a donation tax credit if you are an individual (i.e. not claiming on behalf of a trust, partnership or company), and you were a New Zealand tax resident at any time during the relevant tax year. However, you can only claim on donations to the extent that your taxable income is more than the amount of those donations.
When you opt in to TaxGift for a given donee organisation, you are appointing TaxGift as your tax agent for the sole purpose of claiming your tax credit on eligible donations to that organisation.
Appointing TaxGift as your tax agent for the purpose of donation rebates simply allows us to prepare, file and sign an IR526 (a donation specific tax return) with Inland Revenue on your behalf to claim the available tax credits. Importantly, this does not affect any other tax agents that you might have appointed for other reasons (for example, if you have an accountant that does your income tax returns).
You can terminate your TaxGift appointment at any time by emailing us at firstname.lastname@example.org.
As a donor, the terms and conditions under which you have appointed TaxGift are set out here on our website.
TaxGift is free from a donor perspective: instead, you will not be able to claim the tax credit for donations that you have made to charities for which you have opted in to TaxGift. We note that the charities pay TaxGift a small fee for our service of integrating with Inland Revenue and claiming the tax rebate: our standard fee is an amount equal to 10% (plus GST) of the tax credits that we receive back from Inland Revenue on their behalf.
Feel free to email TaxGift at any time on email@example.com. We are more than happy to help!
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