As The Gift Trust is a registered charitable trust, you're eligible for a tax credit as soon as you donate to your Gift Account. Even if you give to various charities over the year, you'll only have one tax receipt to keep track of — the one you get from us.
Individuals can donate cash into a Gift Account and can claim a 33.33% tax credit. This is paid to you by the IRD in the form of a refund. The tax credits you can claim are capped at one third of your total taxable annual income.
If you are planning a one-off donation that is likely to be larger than your annual taxable income, you may want to discuss this with us or your accountant to create a structured plan over a number of years that ensures you get your maximum tax credits.
To claim your tax credit you will need to complete an IR526 (we'll send you details of this each year along with your donation receipt from us). You can submit this and the receipt to the Inland Revenue Department within four years of making the donation to claim your tax credit.
Read more about donation credits on the IRD website.
Companies can also claim tax deductions for all donations made to The Gift Trust (a registered donee organisation), providing your claim does not exceed your total annual net income.
A tax deduction creates a reduction in the amount of taxable income. Companies can claim this deduction using the IR4 form here (Question 23 refers to donations).