Tax Efficient Giving

Care of the elderly

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

Tax Reclaim for Charities

As a registered charity, donations to St. Vincent’s Foundation can be enhanced when we can reclaim tax on the amount donated. From January 2013, for all donations of 250 or more in a given tax year the receiving charity receives a tax rebate for the charity provided the donor/taxpayer had paid tax of this amount or more in the relevant tax period. Because donations are made from “after-tax” income the tax reclaim is calculated to refund the amount of tax that would have been deducted and the taxation rate used is 31%.

The benefit to charities is best demonstrated by the following example – where a donor gives 500 during 2018 to St Vincent’s Foundation the 500 is considered to be what was left after the donor had paid tax. At a rate of 31% this gross amount before deduction of tax is calculated at 724.65. If the donor has paid a minimum of 224.65 in tax in 2018 the Revenue will repay this amount (224.65) to St. Vincent’s Foundation thereby increasing the value of the donation by almost 45%.

Relevant donors complete and sign a Revenue form, which we will provide and the tax reclaimed is very worthwhile as it substantially increases the income to charities at no further cost to donors.

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