Know the vocabulary

Glossary of terms

It is a good idea to know the following terms so that you can speak confidently to potential donors about tax incentives and how they can benefit from them.

• Close company
  a company which is under the control of five or fewer people or other companies
• Donation
  a gift given from one person or organisation to another. This is different to a payment given in return for goods or services.
• Donee
  a person or organisation receiving a donation. Donors need to donate to an IRD-approved donee organisation to get a tax credit. To become an IRD-approved donee organisation, see the charitable organisations section of the IRD website
• Donor
  a person or organisation that gives money, property or services to another
• Maori authority
  an organisation that administers or controls property or income in trust for the benefit of a group of Maori people
• Publicly listed company
  a company that is allowed to offer its shares to multiple owners
• Rebate (now called a tax credit)
  the amount that can be claimed back in a tax return at the end of the tax year
• Registered charitable entity
  an organisation that is registered with the New Zealand Charities Commission and is therefore eligible for some tax exemptions. Being a registered charitable entity is helpful in becoming an IRD-approved donee organisation. To become a registered charitable entity, see the guidance notes on the NZ Charities Commission website
• Schedular payment (formerly a withholding payment)
  a payment for services provided, made to someone other than an employee. An organisation must withhold tax at a rate specific to the type of service.
• Tax year
  the taxable year for individuals and companies. For most individuals, the tax year is 1st April - 31st March