How to get money back from your charity donations
Did you know that New Zealand is one of the most generous countries in the world? The Charities Aid Foundation’s (CAF) World Giving Index 2021 found that New Zealand scored 7th for their generosity in 2021, based on the number of people who have helped a stranger, volunteered, or donated to charity. If you are one of the many New Zealanders who give to charity, today I’ll be showing you how you can claim back part of your charity donations.
To claim back part of your donations, you need to have donated $5 or more to an approved charity or organisation as an individual (not as a trust, partnership, or company) within the last 4 years. You can claim back the lesser of:
33.33% of your total donations, or
33.33% of your taxable income.
So how do you claim?
Ask the approved charity or organisation for a donation receipt.
Log into myIR and under 'All accounts (tax types) that you can access', click on 'Donation tax credit'.
If you haven't got this account, go to 'I want to...' > 'Register for new tax accounts' > Select your IRD number > 'Donation tax credit'
Once you're in your 'Donation tax credit' account, click on 'Add new receipt'
Attach your receipt under 'Add receipt attachment'
Confirm and submit your donation receipt(s) and bank account details.
Voila! IRD will either refund you the amount directly to your bank account, or, if selected, use it to offset any debt you might have for another tax type (e.g. income tax).
Personally, I’ve donated to two charities on an ongoing basis: World Vision and the Mental Health Foundation of New Zealand. I still donate to World Vision, and getting my donation receipt from them is always extremely easy. Payroll giving to the Mental Health Foundation of New Zealand meant that I didn’t even need to make a claim at the end of the financial year!
If you are thinking of giving to charity, I’d recommend finding a charity that truly resonates with your personal values - whether you are passionate about advocating for human rights, children’s rights, saving the planet, or something else.
You can find out more about making a donation tax credit claim here. There’s helpful information to let you know if you've donated to an approved donee organisation, information on what needs to be on your donation receipt, and more.
Love,
Sophia
