Dáil Éireann debate -
Tuesday, 23 Apr 2002

Vol. 552 No. 3

Written Answers. - Departmental Funding.

Billy Timmins

Question:

103 Mr. Timmins asked the Minister for Finance if there is a scheme in his Department whereby a community group can apply for funding to upgrade a local community hall or obtain funding for other community projects; if a contact or liaison person in his Department co-ordinates such an application; and if he will make a statement on the matter. [12493/02]

Minister for Finance (Mr. McCreevy)

There are no schemes in my Department whereby a community group can apply for funding to upgrade a local community hall or obtain funding for other community projects, as my Department has no function in the administration of grant schemes. It may be the case, however, that certain community groups which satisfy certain conditions may be able to qualify for tax relief under the donations scheme.

As the Deputy may be aware, in the Finance Act, 2001, I introduced a new uniform scheme of tax relief on donations made by either individuals or corporate bodies to approved bodies. Approved bodies include certain charities, schools, universities and other eligible bodies. An eligible charity is any charity in the State which has been granted exemption from tax for a period of not less than three years and which is authorised by the Revenue Commissioners for the purpose of the scheme.

The minimum qualifying donation for relief purposes to any one eligible charity or approved body is €250 per annum and there is no upper limit on the amount which can be donated. Donations for any one year can be on a cumulative basis so that a weekly donation of €5 can qualify for the relief. The relief on the donation will be at an individual's marginal rate of tax.

The arrangements for allowing tax relief on donations will depend on whether the donor is a PAYE taxpayer or an individual on self-assessment or a company. Corporate donors and persons within the self assessment system will be able to claim a deduction for the donation as if it were a trading expense, whereas for a PAYE taxpayer the relief will be refunded by the Revenue Commissioners, at the end of the tax year, on a grossed-up basis directly to the charity or approved body rather than to the donor. This means, for example, that if a person, who pays income tax at the higher rate of 42%, donates €1,000, the approved body can claim €724 from the Revenue Commissioners. Further information on the scheme may be obtained from the Office of the Revenue Commissioners, Charities Section, Nenagh, County Tipperary.