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Tax Effective Giving IE – Wells for Zoë
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Tax Effective Giving IE

Wells for Zoë is authorised by the Revenue Commissioners as an approved body under the Scheme of Tax Relief for Donations to eligible Charities and other Approved Bodies under the terms of Section 848A Taxes Consolidation Act 1997.

What this actually means is that if you pay tax in Ireland (whether PAYE or self-assessed), and donate €250 or more to Wells for Zoë in any year, we can claim nearly 45% in tax relief from Revenue IE at no extra cost to you.

 

To enable Wells for Zoë to claim this relief, all you need do is complete a simple form (which we will send you part-complete) that covers any year in which you donate €250 or more. This enduring form will cover you for 5 years even if you donate to w4z or not and then it can be simply renewed without the need for more paperwork. It can also be back-dated for 4 years if you have donated to w4z in that time.

 

The bottom line is that it’s a ‘no-brainer’ if you pay or have paid tax in Ireland, as all you are doing is telling Revenue IE to give some of that tax to Wells for Zoë and, really extra-fantastically, we then send that extra chunk, plus your original donation, to Malawi, because at Wells for Zoë 100% of your donations get to the projects in Malawi.

For example

 

  • for every €20 you donate or spend in our shop we will be able to send €29 to Malawi;
  • for every pump installation you buy we will also be able to pay school fees for two of our girl child students for a year;

A few Questions you might have:

Can Wells for Zoë getting tax rebates on my donations affect the tax I pay?

Not at all. It won’t cost you a cent in tax or affect your tax status in any way.

How much is the tax rebate worth?

44.93%, i.e. ca. 45% of your donations of €250 or more. For example, if you donate €250, Wells for Zoë can claim €112.33, making your donations worth €362.33 to Malawi. If you donate €1,000 w4z can claim €449.30 making your donations worth €1,449.30 to Malawi.

But I pay 20%/41% tax - how can the charity get 45%?

The rate of tax relief for charities is no longer related to the actual rate of tax the donor pays. It is a blended rate of 45% for all donors.

I thought the charity tax rebate rate was 31%?

Yes, the notional rate is 31% of before-tax-income but, because the donations you make come out of your after-tax-income, Revenue “grosses-up” to take account of you paying a notional income tax rate of 31%.

 

The gross donation is 100%/(100%-31%) = 144.93% of the net donation, so the tax relief works out as 44.93% of the net donation.

How does Wells for Zoë obtain the tax rebate?

After the end of any year in which your donations total €250 or more, Wells for Zoë will send you the CHY3 tax form, to complete unless you already completed one for that period. w4z will then claim the rebate and, when Revenue is satisfied you paid at least that amount in tax, they will pay the charity.

 

Please send the completed form to w4z, not Revenue.

How much tax do I have to pay for the charity to benefit?

The amount of tax you pay should at least equal the tax rebates that the charity claims in respect of your donations. For example, if you donated €1,000 to the charity, your tax paid for that year should be at least €449. If not, Revenue will not give a full rebate to the charity.

What if I am an employee or member of Wells for Zoë?

Well, we don’t have any employees outside of Malawi, but if you are on the board the total donations to approved bodies with which you are formally associated which may qualify for tax relief is limited to 10% of your total income for that year – any excess of donations above that to bodies with which you are associated will not qualify for tax relief.

What payments qualify as donations for tax purposes?

Any donations which you paid yourself (not on behalf of or refunded by another party) from which you and people connected with you obtained no tangible benefit (e.g. if you bought raffle tickets, raised sponsorship yourself or sponsored someone to do an event, they would not qualify).

I'm not a taxpayer but my spouse is – can my donations still be tax-effective?

Yes, if you are jointly assessed as a couple.

What if I'm not employed or have a pension?

If you have a pension, investments or any other means on which you pay either income tax or capital gains tax, that’s eligible for tax relief.

I'm self-employed/self-assessed – don't I get the tax relief myself?

Since 1st Jan 2013, self-assessed and PAYE taxpayers are treated the same – all tax relief goes to the charity, not the taxpayer. So, while you don’t get the relief yourself, your donations to the charity can be worth 45% more at no extra cost to you.

I live outside Republic of Ireland – can the Wells for Zoë get the tax rebate?

For the charity to obtain the tax rebate from the Revenue Commissioners, you must reside in Republic of Ireland in the year in question and pay income tax and/or capital gains tax.

I don't like revealing my tax details.

You don’t need to. You don’t need to tell Wells for Zoë how much tax you pay – under the new system, they don’t even need to know whether you are PAYE or self-assessed or what tax rate you pay. All Wells for Zoë need is your signature and PPS number, which you can find on most tax / social welfare documents addressed to you – the charity will retain this number securely and only for the purposes of obtaining tax rebates on your donations.

Does signing an Enduring Certificate commit me to pay anything to Wells for Zoë?

No, the enduring certificate is not a commitment on your part to pay anything – it simply enables the charity to claim tax relief if you donate €250+ in any of the five years covered by the form.

What if I haven't paid tax for the year in question yet but will do?

You can still complete a CHY 3 form – when you do pay enough tax, Revenue’s system will trigger the addition of the tax relief on your donations to its next scheduled payment to Wells for Zoë.

What if I do not want to complete an Enduring Certificate?

If you prefer to provide a certificate on an annual basis, Wells for Zoë can send you an Annual Certificate (CHY 4 form). However, it is more effective if you complete an Enduring Certificate (CHY 3 form) because it could make your donations over a five-year period tax-effective without the need for any further paperwork on your’s or our behalf.

Can I renew an Enduring Certificate after 5 years?

Yes, and you will be able to do so without further paperwork. It would be helpful if you supplied your phone number and/or email on the CHY 3 form so the charity can contact you about renewal in due course.

Can I cancel an Enduring Certificate?

If you decide later that you do not want the charity to obtain the tax relief, you can cancel an enduring certificate at any stage by contacting the charity.

What about donations I made before 2013?

The scheme was different then. If you were a PAYE-taxpayer and gave €250+ to Wells for Zoë in 2012, please complete the old annual form (CHY 2), if you have not already done so. If you were self-assessed in 2012, you can, if you have not already done so, claim tax relief on donations of €250+ per charity at your marginal rate of tax. Claims should be made in your self-assessment tax return by 31 December of the 4th year after you paid the relevant donations.

Download our CHY3 Form which is available in two formats

Digital Form – Download, Save and Complete using Adobe Reader etc. (instructions on form) and e-mail to us.

Printable Form  – Download and Print form using Adobe Reader etc., hand fill, sign and post to us.

REMEMBER

completing a CHY 3 cert makes your donations worth 45% more and, since Wells for Zoë promises that 100% of your donations go to Malawi, we will make sure we send that 45% too.