News

Stay up to date with all things Xero, accounting & bookkeeping advice, and business guides and tips.

Data migrationProject ManagementVacancyJargonGovernmentCouncilsGrantsFundsOffice partiesClient giftsStaff giftsStaff expensesEntertainmentJeannie davisMackyla worsellMarisRunning costsVehicleMotor vehicleLog bookMeet the teamStaffPetrol refundOff roadPetrolFuelExcise TaxAccounts Receivable SpecialistSelf-employedBusinessesSmall-Business Cashflow (Loan) schemeLeave Support SchemeShort-term Absence PaymentResurgence Support PaymentsCovid Protection FrameworkFinancial supportRed lightProtection FrameworkLossesGainsMortgageInterestLegislationResidential rentalRentalResurgence SupportResponse PlanFrameworkCovid-19Audit ShieldAnnual returnsRSPWage subsidyUpdateAR specialistDebtor managementBusiness HeadspaceDebtor DaddyIndustry specialistsICNZB Annual AwardsBookkeeperAnnual ICNZB conferenceBookkeeping Business of the YearBookkeeper of the YearLeaderTeam-buildingTeam workEmployment incomeBeneficiary incomeSuperannuation taxFBTPropertySharesTrustsTax obligationsIndividualsTax rateBusiness assetsDepreciationStarting out minimum wageWagesTraining minimum wageAdult minimum wageConProPlantMachineryEquipmentLeaseBuyTenantsPeriodic tenancyNotice periodsTenancyRentTenancy lawOfferingEmpathyChanges10 StepsBetter BusinessMerry ChristmasPivotTop tipsDiversifyOnline MeetingVideoFace-to-faceAgendaTechOnlineMeetingDowntimeAllocateManage timeListsDelegateScheduleProductivityTime ManagementTimeErrorsIRDSupportXAPMental HealthBusiness performanceEquityReportsStatement of Financial PositionDirect CostsReportP&LProfit & Loss StatementBusiness supportMackylaTrusted advisorBusiness advisorGST ReturnFilingHybrid basisInvoice basisPayments basisTurnoverRegisterGSTCelebrateVisualiseBusiness successSmall stepsSuccessfulBookkeeper in a Small Practice AwardNorthlandBookkeepersAwardsCertified BookkeepersICNZBNorthland BookkeepersGoodsSellingBusiness useOfficeRecordsHome OfficeImportanceTeachingSavingMoneyKidsPayment termsBalance sheetDebtCredit controlFreelancingControlCost managementBudgetPlanOutflowInflowCash flow forecastForecastCash flowInvoicing sytemsDebtor softwarePayment servicesPrompt paymentDebtorsIntegrationTrackingQuotingAccurateProcessesJob CostingGrow your businessReturn on investmentAccountantProfit vs CashFinancingMarginsInvoicingSalesProfitEmployment AgreementsACCDomestic violence leaveMinimum wage increaseERA Act 2018ACC LeviesSkillsIndependentEmployeeContractor vs EmployeeHiringContractorsServicesProductsNeedsCustomersTarget marketMarket researchEligibleExpenditureTax incentiveDevelopmentResearchR&DRecord keepingIncomeCashDeductionsTaxGetting startedContractingGoal-settingFinancesLifestylePerformanceVisionGoalsGrowthLiquidity ratiosLiabilitiesAssetsQuick ratiosProfitability ratiosSolvency ratiosRatiosBusiness healthMyIRPay runInland RevenuePAYEEmployeesPayday filingXero payday filingTax invoiceGetting paidContractorFocusConfidentClientsB2BBusiness to businessAcknowledgementAccountabilityActionAcceptanceAwarenessChangePayrollSoftwareSimplifyStreamlining processesCreativeAccounting tipsBusiness taxesLimited companyFinancialLegalBusiness complianceRegulatory requirementsFoundationsComplianceXero integratedPayment methodsCultureTeamSystemsFlexibilityCommunicationTechnologyRemote WorkEntrepreneurialSuccessValueMentorSmall businessInvestmentSuperannuationRetirementContributionsSelf employedSuperSafe onlineHackersCyber-crimeSecureAnti-virusSecurityInternetCloud platformBookkeepingAccounting systemFinanceCloud accountingCloudBusinessAccounting Income MethodProvisional taxAIMDataTasksSpreadsheetsAccountingAccounting SoftwareXero SoftwareExcelReviewSuppliersPaymentsInvoiceOverheadsExpensesPlanningWork-life balanceClaimCharitable organisationsTax returnTax deductionTax creditCharityDonationsBusiness.govt.nzLaw round upLandlordsEmployersBusiness ownersLaw changesCard paymentsOnline paymentsDirect debit paymentsOnline payment servicesAged debtCashflowXero payment servicesAccounting tools menuBusiness menuAccountants and bookkeepersNavigation MenuXero updateHolidaysClosure datesChristmas breakChristmasMy Two Cents AccountingXero AdvisorMy Two CentsXero NavigationXero
TAGS

Donations to charitable organisations

Donating to charity not only supports the vital work of an organisation or group, but it can have positive side-effects when it comes to claiming tax deductions. To be eligible for a tax credit, you need to make sure that your contributions meet certain conditions, and that you’re making a legitimate claim.

In general, when a charity is an approved donee organisation or registered as a ‘deductible gift recipient’ (DGR), and you donate over a certain amount, you can claim a tax deduction. You can find out if a charity is a DGR organisation by checking their website, calling them, or searching the register for charities.

But, be careful. There’s a difference between making a donation and making a contribution. When you’re making a donation, you must be doing so willingly, without receiving any ‘material advantage’. This means that you can’t be getting anything in return for your cash. So no chocolate bars, no raffle tickets, no movie tickets and no fancy dinners. If you receive anything after handing over your cash, then this is considered a contribution, and you should not claim this as a tax deduction.
Other situations which are commonly misunderstood to be donations are membership fees, expenses incurred by providing volunteer work (or the value of the time spent doing that work), donating gift vouchers, or money donated through a will.

The last two things you need to know are that a tax deduction for most gifts is claimed in the tax return for the income year in which the gift is made. However, in some circumstances, you can spread the tax deduction over five income years. And, just like any other tax deduction you’re hoping to claim, you’ll need to get and keep the receipt for your donation.

The tax department sometimes demands repayment for ineligible deductions. So, as with all things tax, it’s best to avoid penalties by checking in the with the experts.

Talk to us about your charitable donations and ensure you keep receipts for the payments you have made.