Know Your Rights: Donations to charity

Question

I make regular donations to charity. Can I claim tax back on my donations?

Answer

The tax code provides for tax relief for “eligible charities” and other “approved bodies” including schools and educational institutions. Revenue lists bodies that have been granted a charitable tax exemption on its website.

If you make a donation of at least €250 to an eligible charity, tax relief on your donation is allowed to the charity rather than to you (the donor). Cash donations made in instalments, such as by standing order, also qualify. The charity can claim a refund of tax on your donation at the end of the tax year. Relief is granted to the charity at a blended rate of 31% rather than the rate you actually pay. The donor is not entitled to a repayment of any part of the tax that has been repaid to the charity.

The amount repaid to a charity for any tax year cannot be more than the amount of tax actually paid by the donor for that year. For example, if your income tax liability for 2015 is €350 (which you have paid), the repayment to the charity is restricted to that amount. The minimum qualifying donation for individuals in a year of assessment is €250 and the maximum qualifying donation is €1 million. (Note that corporate donations are treated differently.)

If you are willing to allow the charity claim a refund on your donation, you need to fill out a form - either an “Annual Certificate” (CHY4) for a single tax year, or an “Enduring Certificate” (CHY3) which lasts for up to five years. You can find more information about tax refunds to charitable organisations in Revenue’s booklet about the Charitable Donation Scheme (pdf).

Further information is available from the Citizens Information Centre below.

Know Your Rights has been compiled by Boyle Citizens Information Centre which provides a free and confidential service to the public. Tel: 0761 07 6330

Address: Elphin Street, Boyle, Co. Roscommon

Information is also available online at citizensinformation.ie and from the Citizens Information Phone Service - 0761 07 4000