Charitable Donation Scheme

Who can claim the relief?

Donations from individuals

When an individual donates, the approved body claims the tax relief. To allow the approved body to claim the relief you must complete one of the following forms and give it to the organisation:

Where you allow the charity to claim the relief, you will not be able to claim a refund of the same tax.

Calculating the relief on donations from individuals

The relief is calculated by grossing up the donation at the specified rate. The specified rate is currently 31%. This is explained in the following example.

The amount of the refund cannot be more than the amount of tax paid by the donor for the same year. So, in example 1, if Joan only paid tax of €350 in 2020, then the maximum refund the approved body can claim is €350.

Donations from companies

When a company makes a donation to an approved body, it is the company that claims the relief. There is no grossing up arrangement in this case.

Calculating the relief on donations from companies

The approved body has the benefit of receiving €1,000, but the cost to the company of making the donation is only €875 (€1,000 - €125). The company simply claims a tax deduction on the donation as if it were a trading expense

Next: How does a donor help an approved body to claim the relief?