The Charities Institute of Ireland (Cii) is calling for the €250 limit for tax relief on charitable donations to be reduced to €100 as part of its submission for the next budget.
Cii say such a reduction will incentivise and encourage more donations. The submission in relation to the €250 threshold is one of a number of suggestions contained in Cii’s budget proposals designed to increase funding to the charitable sector.
Cii says it is working with the Revenue on the Charitable Donation Scheme (CDS) to simplify its operation and administration. Cii and Revenue plan to examine the CDS for more digital processes to make the scheme more transparent and efficient for both the Revenue and charities.
A digitalised scheme would allow for one off donations to be eligible for tax relief. This, say Cii, would be of particular benefit for crisis campaigns.
Cii is also proposing additional Capital Acquisitions Tax (CAT) relief to encourage charitable donations in wills.
As a way to ease the burden of VAT for charities, the budget submission is asking the Minister to increase the VAT compensation allowance for charities to be increased from €5 million to €20 million.
The Charities Institute of Ireland was formed in 2016 following a merger of the Irish Charity Tax Reform Group and Fundraising Ireland. Cii’s role is to support its membership through advocacy, education and communication.
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