Alternative giving options for employees

Submission

(54 – Business New Zealand, 67 – New Zealand Institute of Chartered Accountants)

Inland Revenue should have a communications programme established around alternative solutions if an employee wishes to give through their payroll, but is unable to with their current employer.

Comment

Inland Revenue, the Office for the Community and Voluntary Sector and the Treasury are developing a communication and assistance plan to help raise public awareness and encourage take-up of the tax and charitable-giving initiatives. These initiatives include the lifting of the caps on charitable donations made by individuals and companies (which applied from 1 April 2008), the proposed payroll-giving scheme and clarifying the tax rules for volunteer reimbursements and honoraria.

The communications plan will state that the only alternative to payroll giving for donors is to give directly to donee organisations and to claim the tax benefit on their cash donations at the end of the tax year.

Recommendation

That the submission be noted.