How Dermott Made His Gift Go Further
How Dermott O’Sullivan and His Accountant Made a Scholarship Go Further
When farmer and former valuer Dermott O’Sullivan set out to support young people into land‑based careers, his initial plan was simple: fund a $5,000 agricultural scholarship each year for a local student heading to Lincoln University. He liked the immediacy of it — a meaningful award delivered annually, with the added benefit of being able to claim back 33% of his donation through the charitable tax rebate system.
“It was quite straightforward,” Dermott says. “A $5,000 scholarship effectively only cost me $3,333 after the rebate. It felt like an efficient way to support someone each year.”
But the more he thought about it, the more he wanted his contribution to last longer — to be something enduring for South Canterbury students well into the future. That’s when he began exploring the idea of establishing a permanent scholarship through an endowment with the Aoraki Foundation. By creating a fund large enough that its annual investment income could support a meaningful scholarship every year, Dermott could create a legacy far beyond a single donation.
The Foundation encouraged him to speak with his accountant, Paul Wolffenbuttel from HC Partners, to ensure the structure of the gift maximised every benefit available to him as a New Zealand donor.
As Paul explains, the tax rebate rules are generous — but they have limits.
“In New Zealand, you can claim a 33.3% rebate on donations to registered charities,” he says. “But you can only claim up to the total of your taxable income for that year. If Dermott put the entire endowment contribution in all at once, a portion of that rebate would essentially be lost.”
Paul recommended that Dermott be given the discretion to determine how much contribution he would like to make on an annual basis, instead of making a one-off lump sum donation. This simple shift meant Dermott could claim the full rebate each year, effectively stretching his giving power and allowing him to contribute more overall to the long‑term fund.
Dermott says the advice was invaluable.
“It was a no‑brainer once Paul explained it. By spreading the contributions out, I could give more and make the scholarship stronger. It’s a great example of how getting your tax back actually helps you give more.”
The impact of that approach is already evident. The O’Sullivan Scholarship has now been awarded for the second time, with Geraldine High School student Sophie Bock receiving a $6,000 scholarship to support her studies toward a Bachelor of Property and Land Management (BPLM) at Lincoln University.
Dermott says seeing young people step confidently toward careers in agriculture and land valuation is exactly why he wanted the scholarship to last in perpetuity.
“It’s about investing in the future of our region. If smart planning means I can give more, and help more students over time, then that’s something I’m really proud of.”
If you would like to know more about claiming the tax rebate on your charitable donation, head to our Give and Get your Tax Back page for Tips and FAQ’s