The Gift That Gives Back — And How to Claim It

With March 31 approaching, it’s a good time to revisit charitable donations — and the tax credits you may be entitled to claim.

As we move through different stages of life, our relationship with money evolves. We think more about the kind of community we want to help shape.

The basics are straightforward: donate to an approved charity, and you can claim back 33.33% of your donation as a tax credit. Give $100 and receive $33.33 back. You can keep your refund or donate it again, increasing your impact without increasing your cost.

Donation tax credits can be claimed after the tax year ends on March 31.

You have several straightforward options to claim your credit. The easiest is through your myIR account. Upload your donation receipts and IRD calculates your credit automatically. If you prefer paper, form IR526 still works — attach your receipts and mail them to IRD after March 31. If you have an accountant, you can include charitable receipts as part of your usual year-end tax process. And if you’ve forgotten to claim in previous years, you can go back up to four years.

We all want our donations to have a meaningful impact. For that reason, the Aoraki Foundation remains a strong local option. Community foundations, like Aoraki, operate on a powerful idea: the benefit of your donation stays in South Canterbury. It’s invested, and the income supports our community year after year.

The Aoraki Foundation offers established funds you can donate to, such as health, age concern, financial literacy, or their general impact fund. You can donate geographically to Temuka, Waimate, or Mackenzie. Larger donations can create a personalised endowment fund to support specific causes you care about. For existing charities with funds, but limited investment expertise, the foundation provides donor-advised funds. The charity can have input on distributions while the foundation handles investment and administration.

We live in a world increasingly reliant on the generosity of individuals and organisations to function effectively. The tax credit system makes that generosity a little easier. Our donations help strengthen our community — and if you choose to regift your credit, your impact multiplies.

This article is courtesy of the Timaru Courier and was written by Stephen McFarlane a Certified Financial Planner and a Director of Timaru financial planning business Central Wealth Limited.

For more information on claiming your tax credit, head to our Give and Get You Tax Back page