Donation receipts: what to keep, and what a valid receipt shows

When you give money to a registered charity, school, or other approved organisation, you may be able to claim a portion of that gift back from the government. To do this, you need to keep valid donation receipts. These documents serve as your proof of payment when you apply for a donation tax credit. Keeping these records in one place makes it much easier to manage your household finances and ensures you do not miss out on money you are eligible to claim.

What a valid receipt must show

Not every piece of paper from a charity counts as a valid receipt for tax purposes. Inland Revenue requires specific information to be present on the document before they can process your claim. A valid receipt must clearly state that the payment was a donation. It must also include the full name of the person who donated, or their partner's name, and the exact amount of money given. Donations of property, such as goods or cryptoassets, do not qualify for these tax credits.

Your receipt must also show the date of the donation or the tax year in which it was made. It needs to display the name of the organisation you donated to, their IRD number, and their Charities Services registration number if they have one. Finally, the receipt must include the full name, designation, and signature of an authorised person from the organisation, a unique receipt number, and the organisation's official letterhead or stamp. If you lose your original, you can ask the organisation for a replacement, but it must be clearly marked as a copy or replacement.

Keeping your records together

You can claim a tax credit for donations of five dollars or more. Because you have up to four years to submit your receipts, it is helpful to have a system for storing them. Many households find it useful to use an app like Hey Proofy to keep these records organised. You can photograph or upload your receipt as soon as you receive it, which prevents paper copies from fading or getting lost. Hey Proofy can help you keep your bills and receipts in one list, making it simple to find what you need when tax time arrives.

How to claim your tax credit

The easiest way to claim your donation tax credit is through your myIR account on the Inland Revenue website. You can submit your receipts throughout the year as you receive them. If you do not have a myIR account, you can use the IR526 tax credit claim form after the tax year ends on 31 March. You can only claim a tax credit if you earned taxable income during the year you are claiming for and were a New Zealand tax resident at some point during that year.

Individuals can generally claim one-third of the value of their eligible donations. If your total donations for the year exceed your total taxable income, you can split the donations with your partner so they can claim the remainder. Remember that you cannot claim a tax credit for payments that provide a direct benefit to you or your family, such as school fees or attendance dues. You can find more information on your rights and the rules for these claims at https://heyproofy.com/nz/your-rights.

What to do next

Check that your current donation receipts include all the required details listed by Inland Revenue. If any information is missing, contact the organisation to request a corrected version.

Set up a digital folder or use an app like https://heyproofy.com/nz to store your receipts as you get them. This prevents the stress of searching for lost paper slips when you are ready to file your claim.