There are a number of tax benefits associated with annual donations of €250 + to registered charities including the Make-A-Wish Foundation. The recipient of the benefit depends on the type of taxpayer making the donation:
PAYE Taxpayers:
In the case of PAYE taxpayers, donations of €250 + received by the Make-A-Wish Foundation, or any other registered charity, in one tax year are treated as having been received “net” of tax. For example: An individual on the standard rate of tax (i.e. 20%) makes a donation of €500. The value of the donation to the Make-A-Wish Foundation = €625 i.e. €500 x 100/80. The tax associated with the donation = €125. The Make-A-Wish Foundation will be able to claim a repayment of €125 from the Revenue Commissioners.
Self-Assessed Individual:
Self-assessed taxpayers can reclaim the income tax they pay on donations of €250+ in any one tax year. For example: A self-assessed individual on the standard rate of tax (i.e. 20%) makes a donation of €500. The cost to the taxpayer is €400. The taxpayer claims a deduction for the donation on his/her tax return. No repayment claim by the Make-A-Wish Foundation arises.
Corporate Donations:
The company claims a deduction for donations of €250 + in any one tax year as if it were a trading expense. The Make-A-Wish Foundation's registered Charity number is CHY 15267. This information is taken from the Revenue Commissioner’s paper “Scheme of Tax Relief for Donations to Eligible Charities and other Approved Bodies, Under Section 848A, Taxes Consolidation Act 1997. A full copy of this document is available at http://www.revenue.ie/pdf/chy2.pdf