Voluntary Contributions
Each year your family will receive a letter from the Board of Management regarding the request for payment of voluntary contributions. Below are answers to some frequently asked questions in relation to voluntary contributions.
Frequently Asked Questions
How do I ensure that the school receives extra money from the Revenue Commissioners for my family’s voluntary contribution?
In order to avail of the tax relief your family will need to make a voluntary contribution of at least €250 in a calendar year. The Board of Management will review the amount of a contribution paid by your family in a calendar year to calculate whether it can avail of tax relief. You will also need to fill out a CHY3 form which are available from Springdale or at the following link: CHY3 Form. If Springdale receive an amount of €250 or over from you in a calendar year and you have not provided them with a CHY3 form, they will send you the form for completion. The form does not need to be returned to the Revenue. It should be returned to Springdale where they keep it on file. We do not send the form to Revenue. We use the information from the form to request a tax refund from Revenue.
Who can complete the form?
Anyone who has paid tax in the calendar year can complete the form. It is a one-page form that requires your name, address, PPS number and signature.
Will the completion of the form have any impact on my tax credits or take-home pay?
No.
I don’t pay tax at the higher rate. Does this mean that Springdale won’t get as much tax relief?
The Revenue provide the tax relief to charities at 31% regardless of the rate of tax that applies to the parent. All that is required is that the tax payer has paid an amount of tax at least equal to the amount that the school is requesting from Revenue in the calendar year.
I have already completed this form for a different charity that I contribute to. Does this mean that I can’t complete another form for the school?
You can complete this form numerous times for each charity you may contribute to. There is no restriction on the number of forms you complete.
I am self-employed. Does this change the position for claiming tax relief?
No it doesn’t. The CHY3 applies equally to employees and self-employed.
How is the tax relief calculated?
Any donation over €250 is “grossed up” at 31%. This simply means that Revenue recalculate the amount of the donation as if it was taxed at 31% and give Springdale the difference. If you pay Springdale €250, Revenue gross this up (€250/0.69) and recalculate it as €362. The difference (€112) is refunded to Springdale by Revenue.
I would prefer to get the tax relief myself rather than give it to the school
Unfortunately, this is not possible. Since 2013, no tax relief is available to tax payers for voluntary contributions made. It is only the charity that can claim the relief and not the individual tax payer. This remains the case regardless of whether you are an employee or self-employed.
I looked at the forms on www.revenue.ie but there are two forms (CHY3 and CHY4). I am confused!
The CHY3 form is an enduring form. This means that is lasts for up to five years. The CHY4 form needs to be completed every year. Springdale is recommending that the CHY3 is used for ease of administration but it is your choice which form to complete. Both achieve the same purpose from a tax refund perspective.
I filled in a CHY3 form previously and returned it to the school. What do I need to do now?
If you have already filled in this form and returned it to the school then there is no need for you to complete another form.
Examples of How the Tax Relief Operates are Set Out Below
- Once off Payment
| Amount of Voluntary Contribution Paid in Calendar Year
(A) |
Amount Springdale Receives from Revenue
(B) |
Total Contribution Received by Springdale
(A) + (B) |
| €150 | €0 | €150 |
| €300 | €135 | €435 |
- Payment in Instalments
| Amount of Voluntary Contribution Paid Per Month for 11 Months in Calendar Year
(A) |
Amount Springdale Receives from Revenue (in total from the 11 payments)
(B) |
Total Contribution Received by Springdale
(A) + (B) |
| €13.60 | €0 | €150 |
| €27.50** | €136** | €439** |
**If you set up this direct debit, you will need to cancel it after 11 months as
you will have contributed €302.50 which is the equivalent of two year’s
contribution.