Tax Efficient Giving

Did you know that donations made to a charity could be eligible for tax relief?

Because St. Vincent’s Foundation is an “Eligible Charity” as defined by the Irish Revenue Commissioners, donations of €250 or more in any one year are eligible for tax relief. This relief also applies if donations of €21 or more per month are made by standing order.

The relief means that the Irish Revenue Commissioners repay the tax that is relevant to the donation. The tax relief is given at the donor’s marginal tax rate (either 20% or 41%). The treatment of the tax differs between PAYE taxpayers and self-employed. The following examples demonstrate the benefits

PAYE Donors

St. Vincent’s Foundation can seek the tax relief on the donation. Depending on the tax rate of the donor the following applies to a donation of €250:

• If the donor pays tax at 41%, St. Vincent’s Foundation reclaims €174 thereby increasing the donation to €424 without any additional cost to the donor
• If the donor pays tax at 20%, St. Vincent’s reclaims €62 which increases the donation to €312 again at no additional cost to the donor

Larger donations attract a correspondingly increased tax refund.

Self Employed Donors

The same level of tax relief applies as with PAYE taxpayers but, in this case, the refund is claimed by the taxpayer.