Charitable Donations Scheme
Schools who are registered with the Charity Regulator can claim tax relief for eligible donations made to them by parents/donors.
Contributions made towards the following do not qualify as they confer a benefit on the donor
- Book Rental Scheme
- Arts & Crafts
- School Tours
- Contributions for photocopying material
- Extra circular activities
Only voluntary contributions from parents/donors of €250 or greater per year for which the donor does not get a direct benefit or preferential rights are allowable.
Tax relief applies to donations which:
- are €250 or greater in one year
- are in the form of money or shares, or a combination of money and shares
- are not repayable
- do not confer a benefit on the donor or any person connected with the donor, and
- are not conditional on, or associated with, any arrangement involving the acquisition of property by the charity or approved body.
A donation which satisfies the conditions of section 848A is grossed up at 31%.
For example, Joan makes a cash donation of €1,000 to the school in the tax year 2017.Under the Tax Relief Scheme the school is deemed to have received a donation of €1,449.27 (i.e. €1,000 grossed up at 31%) less tax deducted of €449.27. The school will receive a tax rebate of €449.27
To avail of the charitable donations scheme, a school must:
- Have a Roll number
- Charitable Tax Exemption
To apply for Charitable Tax Exemption a school must:
- Be registered with the Charities Regulator (RCN)
- Be registered on Revenue Online Service (ROS)
- Must have a minimum of three trustees(board members)
To apply for tax exemption via ROS:
- Click on My Services tab
- Select ‘Other Services’
- Select ‘Charities and Sports Bodies eApplications’ and complete the questions
Once your school has been granted tax exemption, Revenue will issue a CHY exemption number.
The school must request all donors to complete a CHY3 Cert form CHY 3 Certificate and this will allow the school to claim tax relief in respect of all donations by the donor made to the school during the lifetime of the certificate normally five years. Donors making a once off donation should complete a CHY4 form CHY 4 Annual Certificate.
To make a claim via ROS
- Log into ROS
- Under My Services tab
- Choose ‘File a return’
- Select tax type ‘Charitable Donations’ and the form ‘CDS1’
- Click ‘File Return’
- Select the CDS period you wish to file for
- Enter Donation details using the information completed by the donor on the CHY3/4 form
- Click ‘Add Donation’
- Click Continue to sign and submit claim.
The claim can be submitted following the end of the tax year in which the donation is made. Claims must be made within four years.
If you have a query that is not addressed in these FAQs, please email us at email@example.com.