Charity tax change risks undermining vital breast cancer support

Breast Cancer Foundation NZ is deeply concerned a change to charity tax rules announced in last week’s Budget could reduce major charitable giving at a time when demand for its life-saving programmes continues to grow.

Currently, people who donate to charities can claim back up to a third of their donation through a tax credit, with no upper limit on the amount that qualifies. The new policy says tax credits will be capped at donations of $100,000 per year meaning donations above that threshold will no longer qualify for additional tax credits.

Ah-Leen Rayner, chief executive of Breast Cancer Foundation NZ, says the cap risks unintentionally weakening the charity’s ability to deliver essential services to the people who rely on them most.

“Charities are already operating in an increasingly challenging environment, with rising demand for support and growing pressure on fundraising. Any move that reduces our ability to generate sustainable income risks impacting the people and communities who depend on these services every day,” Ah-Leen says.

“This year’s Budget offered little new support for people affected by breast cancer, meaning charities like ours will continue facing increasing pressure to help fill gaps in the health system. Every dollar lost from charitable giving is a dollar not spent on patient support, education, research and advocacy.

“Philanthropy makes an enormous contribution to our society, funding research, supporting vulnerable communities and strengthening the health system. Large donations help charities to deliver long-term programmes and services that simply wouldn’t exist otherwise. We should be encouraging generosity and making it easier for people to give.

“Reducing charities’ financial resilience won’t remove the need for charity services, it risks making them harder to deliver and could ultimately place even greater pressure on the health system.”

Breast Cancer Foundation NZ is also concerned this change appears to have been announced without meaningful consultation with the charitable sector or a clear evidence base showing what impact it could have on philanthropic giving in New Zealand.

“Before a change of this scale is implemented, we’d urge the Government to work closely with charities and philanthropy experts to fully understand the potential consequences for the communities and services that rely on charitable support,” Ah-Leen adds.