Tax Relief On Charitable Donations
In the case of PAYE taxpayers, donations in excess of €250 received by Cheeverstown, are treated as having been received “net” of tax.
For example: An individual on the standard rate of tax (i.e. 20%) makes a donation of €500. The value of the donation to Cheeverstown is actually €625 i.e. €500 x 100/80. The tax associated with the donation is €125. Cheeverstown will claim a repayment of €125 from the Revenue Commissioners.
A Self-assessed taxpayer can reclaim the income tax they pay on donations over €250 in any one tax year. For example: A self-assessed individual on the standard rate of tax (i.e. 20%) makes a donation of €500. The net cost to the taxpayer is €400. The taxpayer claims a deduction for the donation on his/her tax return.
A company can claim a deduction for donations in excess of €250 in any one tax year as a trading expense. Cheeverstown’s registered Charity number is CHY 3203.
More information is available from the Revenue Commissioners at http://www.revenue.ie/pdf/chy2.pdf