New Zealand offers a generous tax credit for donations to approved charities — you get 33.33 cents back for every dollar you donate. This effectively reduces the after-tax cost of giving significantly. Yet many New Zealanders fail to claim this credit, leaving real money with IRD.
You can claim a 33.33% tax credit on donations of $5 or more to approved donee organisations (registered charities). There is no upper limit on the donation amount you can claim on — you can claim on 100% of your taxable income. Claim via myIR using your receipts, or via an IR3 return. IRD pays the credit directly into your bank account. You need official receipts from the charity — electronic receipts are fine.
How the Donation Tax Credit Works
When you donate to an approved charity:
- The credit is 33.33% (one-third) of your donation amount
- This credit directly reduces your tax bill — it is not a deduction, it is a dollar-for-dollar reduction in tax owed
- If your tax bill is already zero (e.g., you have had correct PAYE deducted), the credit is refunded to you as cash
Example: $300 donation to a registered charity
- Tax credit: $300 × 33.33% = $100 refund from IRD
| Donation amount | Tax credit (33.33%) | Effective after-tax cost |
|---|---|---|
| $100 | $33 | $67 |
| $500 | $167 | $333 |
| $1,000 | $333 | $667 |
| $5,000 | $1,667 | $3,333 |
Who Qualifies for the Credit
The donation tax credit is available to individuals (including those with trust distributions). Companies do not use the donation tax credit — companies deduct donations as a business expense instead.
Requirements:
- You made a donation of $5 or more to an approved donee organisation
- The donation was made from your own money (not from a trust or business account)
- You hold a valid receipt from the organisation
What Is an Approved Donee Organisation?
A donee organisation is a charity registered with IRD for donation purposes. This includes:
- Charities registered with Charities Services NZ (the main register)
- Some government bodies, museums, libraries, and universities
- Overseas charities that meet IRD criteria
You can search IRD’s database of approved donee organisations at ird.govt.nz under “donee organisations.”
Common approved organisations: Cancer Society, Heart Foundation, St John, SPCA, Salvation Army, Oxfam NZ, KidsCan, Ronald McDonald House, university foundations, Kiwi Foundation, and many others.
Not eligible: Donations to school fundraisers (unless the school’s foundation is a registered donee), crowdfunding campaigns (unless the platform and recipient are registered), political parties, or overseas charities not approved by IRD.
How to Claim
Via myIR (Recommended)
- Log in to myIR
- Select “Donation tax credit” under your income tax
- Enter each donation (date, amount, organisation)
- Attach or enter receipt details
- Submit — IRD calculates and processes the credit
IRD typically processes claims within a few weeks. Refunds go to your nominated bank account.
Via IR3 (If Filing an Income Tax Return)
Include your total donations in the “Donation tax credit” section of your IR3. Attach a summary of receipts. IRD will apply the credit in your assessment.
Automatic Assessment
If IRD issues your assessment automatically, you can add donations via myIR — the assessment updates to include the credit.
Filing Deadline for Donation Claims
You can claim donation tax credits for up to 4 years after the end of the tax year in which you made the donation. For example, donations made in the 2021–22 year can be claimed until 31 March 2026.
Maximum Claim Amount
There is no maximum dollar limit on donations you can claim on — you can claim on up to your total taxable income for the year. If you donated 100% of your income to charity, you could claim a credit on the full amount.
However, the credit cannot exceed your total tax liability plus any PAYE overpayment — you cannot receive more back than you paid in or owe in tax. Any excess can be carried forward (unusual situation for most donors).
Payroll Giving — Donate from Your Pay
If your employer participates in payroll giving, you can authorise recurring deductions from your pay to approved charities. The tax credit is applied immediately (reducing your PAYE each pay period) rather than as a year-end refund:
- Donation deducted from gross pay
- PAYE reduced by 33.33% of the donation
- Net effect: your take-home pay decreases by only 67 cents per dollar donated
This provides immediate cash flow benefit vs. waiting for a year-end refund.
Frequently Asked Questions
Can I claim on a donation I made to a local school?
Only if the school’s foundation is an approved donee organisation. Many schools have foundations registered with IRD — ask the school office for their donee status and get an official receipt.
I donated $5,000 to charity but I’m a low income earner and paid little tax. Can I still claim?
Yes — if you paid less than $1,667 in tax (the 33.33% of $5,000), you receive whatever credit reduces your tax to zero, plus IRD refunds any overpaid PAYE. In practice, if you are receiving an automatic refund and add donations, the credit increases your refund.
Do I need paper receipts or will an email confirmation do?
Electronic receipts (email confirmations from charities) are acceptable. The receipt must show the charity’s name, your name, the amount, and the date. Keep receipts for 7 years.
Can businesses claim donation tax credits?
No — companies claim donations as a deductible expense (under s. DB 41 of the Income Tax Act 2007), not as a tax credit. The deduction reduces taxable income at the company tax rate (28%), which is less generous than the individual 33.33% credit.