New Zealand not for profit organisations (Non-profit)

NOT-FOR-PROFIT.ORG.NZ

FAQ
- Non-profit
organisations
in NZ
Latest updates:
IRD TIGHTENS UP ON DONATION RULES
TAX CREDIT CHANGES
PAYROLL GIVING

Situations
Wanted
and
services offered

Discounts and special
offers for non-profit organisations

PROUD SUPPORTER

TAX CREDITS ('Rebates') INCREASED

Please note: This information is provided in good faith, but please check with IRD or a tax professional for definitive information.

You can claim a tax credit (formerly called a rebate) if you gift $5 or more during the year to an approved donee organisation. Donee organisations include charites registered with the Charities Commission, and certain other charitable organisations listed on the IRD website.

Personal donations. For tax years to 31 March 2008 you could claim 1/3rd of the total amount donated, up to a maximum of $1890 (ie you could claim a maximumj rebate of $630). For the tax year ending 31 March 2009 and subsequent years you can claim a tax credit of 1/3rd of the total amount donated, up to your annual taxable income. Claims can be made, from 1 April 2009, on IRD form IR526 which can be downloaded from the IRD website (www.ird.govt.nz) or obtained from IRD offices, or by phoning 0800 257 773. Receipts must accompany all claims. Consult the IRD website for more information.

Company Donations. For tax years to 31 March 2008 companies could claim 5% of the company's net income. For the tax year ending 31 March 2009 and subsequent years companies can claim a deduction up to the amount of the company's net income. There are some exceptions (eg some closed companies) - consult the IRD website.

The changes are good news for qualifying charities, who can encourage donations to their cause by pointing out that all donations are eligible for tax deductions. Receipts must contain basic information, including the charity's IRD number, Charities Commission number (if applicable), be clearly stamped with the charity's name and state that the sum is a donation. A monetary figure must be shown.

Charities should consult the IRD website and in particular the Guide for Charities (IR255) which can be downloaded from the website.