IRD Charitable Donation Rebate.

With the new financial year just commenced a number of people have been unsure about the changed rules regarding the rebate on charitable donations.

Since March 31st 2009 there have been different rules concerning the rebate from money given to charities then there had been previously.

If you give more than five dollars to
    • an approved charity,
    • an approved New Zealand religious organisation,
    • medical research schools and universities,
    • an approved overseas aid funds,
    • kindergarten associations (excludes private kindergartens or other early childcare fees - these may be claimed under the childcare tax credit)
    • or state and state integrated schools, or their board of trustees (the payments can either be "donations" or payment of "school fees" if they go to the school's general fund), then you can apply for a rebate.

The amount of rebate is what has changed.

You can now claim back
    • 33.3333% of the total donation you have made,
     or
    • 33.3333% of your taxable income whichever is the LEAST.
What that means is that you cannot claim back more than a third of what you earned.

The claim should be made on IRD's Tax Credit Claim form (IRD526).  If you have previously made such a claim, a form will be sent to you automatically.  If you do not receive one you can phone the IRD or download a form from the IRD website.