Christmas Donations: The Tax Upside

Christmas is a time for giving – and it’s not all about presents. Donating to charitable organisations is a fantastic way to support the causes close to your heart. Not only that, but it’s surprisingly good for your health, and you even get a tax credit, so it’s a real win-win for you and your favourite charities.

Giving is good for everyone

Your donations improve lives for the people who receive them. This year, with its high inflation, will be a tough one for some Kiwi households – the City Missions across Aotearoa hand out thousands of food parcels at Christmas.

And the people who need it aren’t the only ones who benefit. Giving money to causes you care about is good for your mental and physical health. It has been shown to boost happiness and improve your longevity. So why not consider making a donation on behalf of your clients this year, instead of giving them hampers or bottles of wine?

Over 650 organisations approved for tax credits

As an individual, if you donate $5 or more to an approved charitable organisation, you are eligible for a tax credit. This is 33.33 cents for every dollar you donate. This means that if you donate $100 to a charity, they get the full benefit of $100, but it only costs you $66.66.

Businesses can also deduct donations from their income, so keep your receipts (physical or digital) when you make a donation. Once again, the charity gets the full benefit, while your business effectively pays a reduced price.

You can search the full list of approved donee organisations here.

Find out more about the tax implications of donating

We can walk you through the tax implications of making donations this Christmas – whether you want to make donations in lieu of client gifts, or as part of your personal festive giving. We can help you maximise the tax advantages of all your donations, including any school donations for your children’s schools.

Get in touch – we’d love to hear from you.