In 2007, a number of groups working in the charitable sector got together to form the Generosity Hub. The aim of the Hub is to create better awareness of giving in New Zealand. Giving includes money, time, gifts and acts of kindness. The vision for the Generosity Hub is a society where giving is the norm, where generosity is recognised and celebrated and where giving is supported by government, business and the community.

There are several projects underway, including a project to increase awareness of payroll giving. Payroll giving is a scheme introduced by Inland Revenue which enables employees to make a donation to registered charities and receive the tax benefit from the donation straight away. Employers can choose whether or not they offer this scheme to employees. The advantages of the scheme are:

• Tax benefits are immediate and are 33.33% of money donated with no upper limit
• There is no need for the employee to file a return to IRD
• It is easier on the pocket to donate by small, regular amounts rather than larger lump sums
• ll funds go directly to the charity with no ‘middle man’ costs from telemarketers or advertising campaigns

Other projects of the Generosity Hub include encouraging ‘giving circles’ to involve more people in giving time and money and promoting a ‘three money box’ idea for children (one for spending, one for saving and one for charity).

This is the season for giving and a good time to think about how you can be generous to others.

A new voluntary scheme called ‘payroll giving’ was introduce by Inland Revenue earlier this year so you can now arrange with your employer to make donations on your behalf from your pay.

The advantage of setting up this arrangement is you receive a tax credit of 33% at the same time as you make the donation. For every $10 you donate, you get back $3.33. Instead of keeping track of all your donation receipts throughout the year and putting in an annual claim for your donations, you have no paperwork to worry about. The amount of your donation is spread over the year in small amounts rather than being one lump sum, so it is easier on your budget.

There is one catch; it is up to your employer to decide whether they will offer this scheme to employees.

With the exception of schools, donee organisations must be approved by Inland Revenue for the tax benefit on a donation to be claimed. A full list of all approved charities can be found at www.ird.govt.nz /donee-organisations and there are plenty to choose from.

The thresholds for donation tax credits were increased on 1 April, 2008 so the amount that can be claimed as a qualifying donation is limited only by the amount of your taxable income.

Whichever way you look at it, giving to others makes good sense, allowing you to benefit not only from tax credits but from being a socially responsible citizen.