Donations and tax
What typically applies in New Zealand, in plain English. The official pages have the final word.
Typically
- Donors can claim a tax credit only for gifts to an IRD-approved donee organisation, such as a registered charity, school or kindergarten. Check IRD's list of approved organisations.
- Individuals can claim back one-third (33⅓%) of eligible donations of $5 or more; the donations counted can't add up to more than their taxable income for the year. They need a correct receipt and must claim within 4 years.
- Companies can usually deduct cash donations to donee organisations, up to their net income for the year.
- A donation must be a voluntary gift of money with no direct benefit to the giver or their family. Raffle tickets, purchases, membership fees and gifts of goods don't qualify.
- Sponsorship that buys advertising, naming rights or other promotion is a business arrangement, not a donation, so it doesn't earn a donation tax credit.
- A group doesn't have to be a registered charity to get donee status, but a group whose purposes are all charitable must register with Charities Services first. Anyone can look up a charity on the Charities Register.
Ideas this applies to
- Anzac Day: what your group can and cannot do
- Sponsor-a-player or sponsor-a-place
- Pick-a-date calendar
- Club contribution to an individual member's trip
- Grants and scholarships open to individuals
- Ground, fence and clubroom signage
- Mufti (non-uniform) day for a gold coin
- Payroll giving
- Regular giving (monthly automatic payment)
- Fill My Jersey (pick-a-number jersey)
- Business donation (no advertising in return)
- Buy-a-square grid (no-prize version)
* General fundraising information, not legal, tax or financial advice. Money figures are examples and estimates, not promises. Check current official requirements before you commit. About this guide