Tax Efficient Donations

Tax Efficient Donations

Tax Reclaim for Charities on Personal Donations

The Charitable Donation Scheme allows tax relief on qualifying donations made to approved bodies.

  • For Personal Donations of €250 or more per annum , the approved body can claim a refund of tax paid on that donation (explained in more detail below);
  • For Corporate Donations of €250 or more per annum, the company can claim a tax deduction as if the donation was a normal trading expense;

As a registered charity, donations from individuals to Beacon Foundation can be enhanced when we can reclaim tax on the amount donated.  For all personal donations of €250 or more in a given tax year,  the receiving charity receives a tax rebate provided the donor/taxpayer had paid tax of this amount, or more, in the relevant tax period.

Revenue Form: CHY4 Cert

Relevant donors can  complete and sign a Revenue Form (CHY4 Cert). We can provide this form. The tax reclaimed is very worthwhile as it substantially increases the income to charities at no further cost to donors.  You can download this form from our website here or contact for a copy.

Example of Tax Reclaim by Charity

Personal donations are made from “after-tax” income, therefore the tax reclaim is calculated to refund the amount of tax that would have been deducted and the taxation rate used is 31% e.g. where a donor gives (say) €1,000 during 2020 to Beacon Foundation the €1,000 is considered to be what was left after the donor had paid tax.  At a specified tax rate of 31% the “after-tax” donation of €1,000 is deemed to be 69% of the gross amount before deduction of tax of €1,449 calculated as (€1,000/69%). If the donor has paid a minimum of €449 in tax in 2020 then Revenue will repay this amount (€449) to Beacon Foundation, thereby increasing the value of the donation at no further cost to donors.

You can download a form here and return it to the below address. Thank You

Beacon Foundation
Suite 15 The Mall
Beacon Court
Dublin 18
D18 KX64