Understanding Tax Relief on Donations in Ireland – A Simple Guide for Individuals and Companies

Giving to charity feels good, but in Ireland it can also be highly tax-efficient. The Charitable Donation Scheme offers tax relief on qualifying donations to approved charities and sporting bodies. While the rules are straightforward once understood, many individuals and companies still miss valuable reliefs simply because they’re unsure how the system works or assume it’s too complex to claim.

This guide explains what the scheme is, who benefits, how relief works, and the key steps to ensure your donation delivers the greatest impact for the organisations you support.

What Exactly Is the Charitable Donation Scheme?

The Charitable Donation Scheme allows tax relief on donations of €250 or more made in a calendar year to approved bodies in Ireland. These bodies include recognised charities, eligible educational institutions, and certain sports organisations.

The donation must be a gift, meaning it cannot be linked to any benefit or advantage in return. Once that threshold is reached, the way relief is granted depends on whether the donor is an individual or a company.

How the Scheme Works for Individuals

If you donate as a private individual, the tax benefit goes to the charity, not to you personally. The charity claims the relief from Revenue after you complete a short CHY form.

Here’s how it works:

• Individuals donate €250 or more in a given tax year.
• Donations may be made as a lump sum or as multiple smaller gifts that reach the threshold.
• You complete a form (such as CHY3 or CHY4) confirming you paid tax.
• The charity submits a claim to Revenue.

Revenue then “grosses up” your donation at a blended rate so that a €250 gift could be worth nearly €362.33 to the charity. This uplift provides substantial additional value without any extra cost to the donor.

This approach makes the scheme particularly powerful for charities relying on consistent public giving.

How the Scheme Works for Companies

Corporate donations operate differently. Instead of the charity receiving the relief, the company claims it as a deductible trading expense.

Key points for companies include:

• The donation must be at least €250 within the tax year.
• The company deducts the donation in its tax return as if it were an ordinary business expense.
• The charity receives the full donation value immediately and does not need to claim any refund from Revenue.

This is often a straightforward way for businesses to support community organisations while reducing their taxable profits in a compliant and transparent manner.

Who Can Receive Qualifying Donations?

To qualify for relief, the organisation must be an approved body with the proper Revenue authorisation. Most registered charities and recognised sports bodies will meet the criteria, but not all do.

Approved bodies will usually state their eligibility clearly, often referencing their CHY number. When in doubt, donors and companies should verify the organisation’s status before making significant gifts.

Which Donations Qualify?

Most monetary gifts are eligible, subject to these conditions:

• Donations must be in money, not goods or services.
• They must be outright gifts, with no benefit in return.
• Payments that form part of fundraising activities where goods or services are received in exchange are not eligible.
• Donations must not be conditional or repayable.

Because the rules emphasise gifts rather than purchases, transparency is essential. Clear separation between fundraising activities and actual donations ensures both donors and recipients remain compliant.

Making the Process Simple

For individuals, the practical step is completing the charity’s CHY form. Many charities now provide multi-year enduring forms, reducing paperwork for both sides.

For companies, the key step is ensuring the donation is properly recorded in the accounts and that the supported organisation is eligible under the scheme.

In both cases, the administrative burden is deliberately light. Revenue has designed the system to encourage legitimate giving and to make compliance accessible for donors and charities alike.

Why This Scheme Matters

Ireland’s charitable sector depends heavily on public and corporate generosity. By allowing tax-efficient giving, the scheme increases the impact of each donation and provides predictable support to organisations serving communities, sports, education, healthcare, and social services.

For donors, it is a simple way to maximise the positive impact of contributions. For approved bodies, the uplift in value can significantly strengthen their work without increasing fundraising pressure.

Final Thoughts

The Charitable Donation Scheme remains one of the most effective ways to enhance the value of charitable giving in Ireland. Whether you’re donating personally or making a contribution through your company, understanding how relief works ensures that your generosity goes further and directly supports the organisations you care about.
If you’d like personalised guidance on incorporating charitable giving into your financial or corporate planning, book a confidential consultation with Chartered Capital today.

The content of this article is for information purposes only and does not constitute a personal recommendation. You should always speak to a financial adviser that is regulated by the Central Bank of Ireland when considering financial advice. Any recommendation made will be based on a full suitability assessment that will include a comprehensive review of your circumstances, needs and objectives. Past Performance Is Not A Guide To Future Returns.