Kiwis can now claim a rebate on donations made to charities registered with Tax Management NZ (TMNZ) without providing a receipt.
Our Smart Donation service liaises directly with a charity to which a donor has given money in order to get the required receipt and fill out the form needed by IRD for the donor to get a rebate.
TMNZ has already partnered with the Mental Health Foundation and Women’s Refuge to process donation rebates on donors’ behalf.
Discussions are being held with other charities.
“Kiwis donate roughly $1.373 billion to charity each year, with rebates on close to $695 million going unclaimed each year,” says TMNZ chief executive Chris Cunniffe.
“Many rebates go unclaimed because of the hassle of having to hold tax receipts or fill in forms. Smart Donation makes it easier for these people to claim the rebate which they are entitled to. That’s more than $230 million that could be reinjected into New Zealand’s charitable sector or passed back to donors.”
A donor could choose to have the rebate paid to them directly or re-donate it to charity.
TMNZ would become a donor’s tax agent for donations only, not their other tax affairs.
The company deducts its fee before the rebate is paid.
TMNZ’s belief in giving back to the community is what encouraged the company to add the service to its core business of helping provisional taxpayers manage their income tax payments.
“We hope this will encourage Kiwis to increase their generosity to help raise even more money for the charitable organisations they care about,” says Cunniffe.
Kiwis who donate $5 or more to a charity or organisation like a school or church may be able to claim a 33.33 percent rebate on their donation, provided they had taxable income in the tax year they made the donation.
More information about Smart Donation can be found here.