There are a number of tax benefits associated with annual donations of €250 or more to registered charities. This tax relief means that your donation can mean even more to Immunisation 4 Life And there is no limit to how much you can give!
The recipient of the benefit depends on the type of taxpayer making the donation:
1. In the case of PAYE taxpayers, the tax relief is applied at the marginal rate and is paid directly by the Revenue Commissioners to the Eligible Charity on receipt of the relevant appropriate certificate (an official form is completed by the donor and the charity receiving the donation). For example, an individual on the standard rate of tax (i.e. 20%) makes a donation of €500. The value of the donation to the charity = €625. The tax associated with the donation = €125. The charity will be able to claim a repayment of €125 from the Revenue Commissioners.
2. Individual taxpayers on self-assessment benefit directly from relief at the marginal rate by claiming the donation as a tax-deductible expense. For example, a self-assessed individual on the standard rate of tax (i.e. 20%) makes a donation of €500. The cost to the taxpayer is €400. The taxpayer claims a deduction for the donation on his/her tax return.
3. Corporate donors simply claim a deduction for the donation as if it were a trading expense.
So in the first case the tax relief is paid directly to the Charity whilst in cases two and three the donor receives the tax relief.
This information is taken from the Revenue Commissioner’s paper “Scheme of Tax Relief for Donations to Eligible Charities and other Approved Bodies, Under Section 848A, Taxes Consolidation Act 1997.
Further information is available on the Revenue website http://www.revenue.ie/en/personal/charities.html.