The 2013 Budget introduced changes to the Tax Relief Scheme on charitable donations.
ALL TAX PAYERS ARE NOW ELIGIBLE
With the new Tax Scheme on charitable donations, as long as you are a tax payer in Ireland – PAYE or Self Assessed – and you have given €250 or more to the Irish Red Cross in the course of a tax year, the Irish Red Cross can then claim the tax paid on your donation(s).
While you don’t get the tax relief yourself anymore, your donations to the Irish Red Cross can be worth 45% more at no extra cost to you.
WHAT YOU HAVE TO DO
Please download and fill out the new Enduring Certificate (or CHY3 form) which covers five years. This means that after you complete this new form, for the next five years, each year you make a gift of €250 or more to the Irish Red Cross, we can claim tax on your donations without having to send you a form each year. Once you have it filled out, please return it Freepost to: Irish Red Cross, Freepost, 16 Merrion Square, Dublin 2
Because we don’t have to send you a form each year we will save money and you will save time.
We can claim tax back for the past four years – so if you donated four years ago, this year is our last chance to claim the tax on it.
YOUR DONATIONS ARE WORTH EVEN MORE NOW
The rate of tax relief for charities is no longer related to the actual rate of tax the donor pays. It is a blended rate of 31% for all donors.
The gross donation is 100%/ (100% - 31%) = 144.93% of the net donation, so the tax relief works out as 44.93% of the net donation.
HOW TAX RELIEF HELPS YOUR DONATION GROW
|The value of your donation||Increase after Tax|