With the end of our tax year now clearly in sight, ‘tis the season to talk about your charitable contributions!
Charitable donations are an excellent way to reduce your tax for the year, all while doing something for the greater good. But as with everything in tax law, there are a few key things you need to know.
Here are some tips for making sure that you get the best return on your donations for 2019:
You can claim a tax credit if you donated an overall annual amount of $5.00 or more to an approved donee organisation - where there is no identifiable direct benefit to you or your family. If you're not sure whether an organisation is qualified, you can check whether they have donee approved status here: http://www.ird.govt.nz/donee-organisations/
NB: Just so you know, Diabetes New Zealand is an approved organisation and our Charities Commission number is CC11432
You cannot claim for any amount given to Diabetes New Zealand in exchange for goods or services. In other words, you cannot claim your membership subscription as a tax credit as you have received a quarterly magazine and other member benefits for this payment.
All amounts claimed must be accompanied by a signed receipt from the organisation. If you donate monthly throughout the year, Diabetes New Zealand will send you one receipt for the total amount given for the year. If you have given a single donation anytime since 1 April 2018 and don’t have a copy of this receipt, please contact us on 0800 34 22 38 to request one.
Contributions are deductible in the year made so be sure and get any donations you intend to make into us by March 31st 2019. And yes, that means that credit card charges made before the end of the year are deductible even if the credit card bill isn't paid until the next year. Similarly, cheques which are written and mailed by the end of the year will be deductible for this year even if they aren't cashed until after April 1st 2019.
One last thing, the total donations you claim can't exceed your taxable income for the year. If they do, you can claim donations up to the amount of your taxable income.
The maximum tax credits you can claim are the lesser of:33.3333% of the total donations you've made, or 33.3333% of your taxable income. In other words, you can claim up to a third back through a tax rebate.
For example, if you donate $3,000 that’s a whole $1,000 back in your pocket!
If you have any queries or concerns as we approach the end of the tax year this month please don’t hesitate to email us at firstname.lastname@example.org or phone 0800 34 22 38 (0800 DIABETES)
Of course, if you’re thinking “Now’s the time to make that gift!” then that would be wonderful too.
Simply click here to make a secure online donation right now! [Link to Donations Page]