Q – We are going to donate on a regular basis but want to do so to maximise the tax benefit for the two charities involved. Can you let us know the minimums and maximums for such donations ? John – Killarney Co Kerry
A – What a refreshing question John ! The minimum donation in any year that must be made to maximise the tax benefit to any one eligible charity or approved body is € 250. Donations made by instalments (e.g. Standing Order) will also qualify. For the purposes of tax relief, and where there is no association between the donor and the charity(s)/approved body(ies) to which the donation is made, there is no maximum qualifying donation. However, where there is an association between the donor and the charity(s)/approved body(ies) at the time the donation is made e.g. where the donor is an employee or member of the charity/approved body, then relief will be restricted to 10% of the total income of the individual for the relevant year of assessment. Details of this restriction are set out in the 2003 Finance Act. It must not be conditional on, or associated with, any arrangement involving the acquisition of property by the charity or the approved body. Further information can be obtained from Inspector of Taxes, 9/15 Upper O’Connell Street, Dublin 1.(DIRD@revenue.ie) (01) 874 6821. Well done.