Dáil Éireann Debate, Monday - 11 September 2023
484. Deputy John Lahart asked the Minister for Finance if, in the context of Budget 2024, he has any plans to empower the charity sector to seek philanthropic support through a strong incentivisation of fundraising and giving, which would ultimately help to alleviate some of the significant pressure on the Exchequer; and if he will make a statement on the matter. [38937/23]
View answerAs the Deputy may be aware, the Charitable Donation Scheme allows tax relief on qualifying donations made to approved bodies. Section 848A of the Taxes Consolidation Act, 1997 provides that where an individual makes a charitable donation, the approved charitable body receiving it can claim a refund of income tax paid on that donation at a blended 'grossed-up' rate of 31%. The requirements of the scheme include:
• A minimum donation of €250 per annum must be made;
• The donor or anyone connected with the donor cannot get a benefit of any kind resulting from the donation; and
• The donor must have paid income tax of an amount equal to the income tax on the grossed up amount of the donations in order for the body to receive a refund of tax.
More information on the Charitable Donations Scheme can be found on Revenue's website at www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-36/36-00-17.pdf .
Insofar as the incentivisation of donating to charities might relate to changes to taxation measures such as s. 848A, it is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on any matters that might be the subject of Budget decisions. However, I would add that any such decisions must have regard to the sound management of the public finances and my Department's Tax Expenditure Guidelines.
