The Foundation is working with UL’s President to identify our next major project but have a number of key priorities we are actively fundraising for.
The University of Limerick Foundation is approved as an “eligible charity” (Reg # CHY 9688) for the purposes of Sectio n848A TCA 1997 and, therefore, qualifying benefactions which total €250 or more in any year will qualify for tax relief.
PAYE and Self Assessed Individuals
The tax relief is given back to the UL Foundation making the value of the donor’s gift considerably higher.
Relief is given on a “grossed up” basis, so the donation is treated as received by the Foundation “net” of Income Tax at a blended rate of 31%. The UL Foundation then makes a claim directly to the Revenue Commissioners for repayment of this tax. The donor will need to complete a form called CHY2/3/4 CERT, which will be supplied by the Foundation and can last for up to 5 years if the donor wishes.
- An Irish taxpayer wishes to make a contribution of €10,000 to the UL Foundation under S848A TCA 1997. The benefit to the Foundation will be €14,493.
|Individual’s Marginal Tax Rate||31%|
|Total value of gift to UL Foundation||14,493|
|Tax associated with the gift (recovered by UL Foundation from the Revenue Commissioners)||4,493|
|Net cost of gift to taxpayer and amount of gift to UL Foundation||10,000|
- An Irish taxpayer wishes to make a TOTAL contribution of €10,000 to the UL Foundation under S848A TCA 1997, calculated as follows:
€6,900 paid directly to UL Foundation, with CHY cert (€10,000/100*69)
€3,100 reclaimed from Revenue by UL Foundation (€6,900/69*31) = €10,000
A company agrees to make a contribution of €100,000 to the UL Foundation under S848A TCA 1997. Assuming a Corporation Tax Rate of 12.5%, relief is as follows:
|Tax saving @ 12.5%||12,500|
|Net cost of gift to corporate benefactor||87,500|
For further information, please consult your tax advisors.