How TaxGift works
Donations of $5 or more to an IRD registered charity qualify for a tax credit of 33.33% (for NZ tax residents). Givealittle has partnered with TaxGift to offer you the opportunity to re-donate your tax credit to the charity. What's more, the process repeats each year as long as the credit donated is $5 or more.
For example:
If you donate $100, your tax credit is $33.33.
TaxGift claim that credit on your behalf and that extra $33.33 is donated via Givealittle to the charity you donated to.
That $33.33 donation, results in a tax credit the next tax year of $11.11.
The $11.11 is donated via Givealittle, resulting in a tax credit the following tax year of $3.70.
That $3.70 is also automatically donated, but it's below the threshold to claim on, so the process stops there.
The total tax credit gifted is $48.14. That's a 48% increase on the original donation of $100 at no cost to you!
Note - The revenue flow to the charity is not immediate, as the tax credit claims need to fit in with annual IRD processes.
Due to the volume and nature of the work required to administer, track and apply funds on behalf of many donors, a combined TaxGift/Givealittle fee of 12.35%+GST is charged on the tax credits passed on to the charity. Find out more.
You will be prompted by Givealittle later to provide your IRD number to TaxGift so they can process the tax credit - this is quick and easy.
