Tax Efficient Giving – Taxback on your Donations
If you’ve generously given €250 or more to Breakthrough in any one calendar year, you could make your donation work even harder by letting Breakthrough claim some of the tax that you’ve already paid to Revenue!
How it works
The taxback scheme allows Breakthrough Cancer Research and other charities to claim more than 40% in tax back on a year’s donations totaling over €250, at no cost to you. All you need to do is sign and return a CHY3 tax-back form so we can claim the tax back from the Revenue Commissioners.
Do you qualify?
If you pay any Irish tax, either PAYE or self-assessed, and you live in Ireland, then you probably do! In order to claim any tax back, you need to have donated €250 or more within any one year during the last four years. The amount need not be a lump sum – if you have donated several times and it adds up to €250 or more, then your donations count towards the tax we can claim.
It doesn’t matter if you’re PAYE or self-assessed for Breakthrough to be able to claim back your tax paid. And please remember that self-assessed tax payers can no longer claim their own tax back on charitable donations – only the charity can make this claim from Revenue, and the money claimed will be used to fund more research into new and better treatments for cancer.
How does it start?
The process is very simple, all you need to do is download a CHY3 form by clicking the link below.
Once you’ve downloaded the form, you just need to print it out and add your name and address details, including Eircode, and your PPS number, and then sign it and return it to the following address:
Breakthrough Cancer Research
Glenlee
Western Road
FREEPOST FCK679
Cork
T12 F9XD
Notes to the CHY3 Form:
The Charitable Donation Scheme allows tax relief on qualifying donations made to approved bodies. If an individual donates €250 or more in a year, the approved body can claim a refund of tax paid on that donation.
Guidance Notes for completion of Enduring Certificate CHY3
Section 848A of the Taxes Consolidation Act (TCA) 1997 provides for tax relief in respect of charitable
donations by self-assessed or PAYE taxpayers. This tax relief is provided to the approved body.
For the purposes of the Charitable Donations Scheme (CDS) a donation is grossed up at the rate of 31%.
The approved body is deemed to have received the grossed-up amount net of tax deducted.
It is important to note that a donor is not entitled to a repayment of any part of the tax that has been repaid
to the approved body under this scheme. This includes claims for tax relief for medical expenses.
Example
Joan makes a cash donation of €1,000 to an approved body in the tax year 2023.
Under this scheme the body is deemed to have received a donation of €1,449.27
(€1,000 grossed up at 31%) less tax deducted of €449.27.
On the assumption that Joan has paid income tax for 2022 of at least €449.27, the
approved body can obtain a refund of that amount. This can be claimed after the end
of the tax year 2023.
The amount repaid to an approved body cannot exceed the amount of tax paid by
the donor for the year in question. If Joan’s income tax liability for 2023 is €350, and
she has paid this amount, the repayment to the approved body is restricted to that
amount.
Joan is not entitled to a repayment of any part of the tax that has been repaid to
the approved body.
1. Approved bodies
The following are approved bodies for the purposes of the scheme of tax relief for donations:
• an eligible charity, i.e. any charity which is authorised by the Revenue Commissioners to operate this
tax relief scheme;
• educational institutions or bodies including primary, second level or third level, as described in Part 1 of
Schedule 26A TCA 1997;
• a body approved for Education in the Arts by the Minister for Finance as described in Part 2 of
Schedule 26A TCA 1997;
• organisations that promote human rights as detailed under section 209 TCA 1997.
A list of resident and non-resident charities authorised for the purposes of the CDS is available at:
https://www.revenue.ie/en/companies-and-charities/charities-and-sports-bodies/charitabledonation-scheme/index.aspx
2. Enduring Certificate CHY3
There is no obligation to complete a CHY3 certificate in respect of your donations. You can complete this
form in respect of some or all of the approved bodies to which you make donations. This certificate is valid
for a period of five years. You can cancel it before the end of that period.
3. Renewal and cancellation of Enduring Certificate
Breakthrough may contact you about renewal of your certificate. Alternatively, you can advise Breakthrough to renew it. If you wish to cancel your certificate you must notify Breakthrough.
4. Thresholds for tax relief purposes on the amounts donated
There are some limits in place for tax relief purposes.
• a donation to any one approved body must, for tax relief purposes, be in the form of money and / or
designated securities*.
• the donations must amount in aggregate to at least €250 in a tax year;
• the aggregate of donations to an approved body or bodies in any tax year from 2013 onwards cannot,
for tax relief purposes, exceed €1,000,000;
• if you are associated with an approved body, or bodies, the amount of your donations to that body or
bodies is for tax relief, limited to an amount equivalent to 10% of your total income. It should be noted
that these limits apply solely for the purposes of tax relief on your donations. They do not impose any
restrictions on the amount you can donate to an approved body.
*Designated securities are quoted shares and debentures.
These limits apply solely for the purposes of tax relief on your donations. They do not impose any
restrictions on the amount you can donate to an approved body.
5. Association with an approved body
You are associated with an approved body if at the time you make a donation you are an employee or
member of that body, or of another approved body associated with the former. One approved body is
deemed associated with another if it could reasonably be considered that:
• the activities carried on by both bodies are or can be, directed by the same person or by broadly the
same group or groups of persons, or
• the same person or broadly the same group or groups of persons exercise or can exercise control over
both bodies.
You should advise the approved body of any changes to your association with that body during the lifetime
of your certificate.
The aggregate of your donations in a tax year to all approved bodies with which you are associated cannot
exceed 10% of your total income for that year. The amounts of those donations exceeding the 10% limit are
not considered relevant donations. Tax relief is not available on that excess amount.
Further Information
You can obtain further information on the Charitable Donations Scheme from:
Revenue website https://www.revenue.ie/en/companies-and-charities/charities-and-sports-bodies/charitable-donation-scheme/index.aspx
Telephone: 01 738 3688
Email using MyEnquiries service available in ROS or myaccount
The information here is provided as a guide only and is not professional advice, including legal advice. It
should not be assumed that the guidance is comprehensive or that it provides a definitive answer in every case.
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