Core Issues

ICTRG successfully campaigned over the past ten years to provide tax incentives for personal and corporate donations to charities, which would encourage increased giving from both individuals and companies to the sector. We have also represented the interests of charities and the donor public in advocating for appropriate legislation for the effective regulation of charities.

Direct Tax

As of the 6th April 2001, donations to eligible charities of at least €250 in any one tax year from whatever source (i.e. individuals, partnerships or companies) attracts tax relief at the taxpayer’s marginal rate of tax, with no upper limit on the amount of donations. Full details of how the system operates are given under Tax Effective Giving.

Indirect Tax

Reducing the tax burden on the sector (Indirect Taxation) - Relief of irrecoverable VAT Although some charities receive significant government funding, they suffer a substantial VAT burden which cannot currently be reclaimed. This means that charities pay up to 21% more for goods and services than the commercial sector, as the VAT already paid cannot be recovered. Campaigning to have this situation changed is a real priority for the ICTRG (see www.vatcampaign.com).

Regulation

In 2002, governmental responsibility for charities was taken over by The Dept of Community, Rural and Gaeltacht Affairs (CRaGA), and since that time, the sector has undergone a period of radical development and change. The most significant development has been the enactment of the Charities Act 2009, following an extensive consultation process that began in 2003. 

Tax Effective Giving

Since the 6th April 2001 tax relief is available on donations of €250 or more in any one tax year to eligible charities from both individual and corporate donors. Tax relief is applied to these donations at the donors' marginal rate of tax (currently 41%). In most cases there is no upper limit on the amount of the donation. However, in the case of donors 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.