Have you ever wondered how to donate money? Yes, for real, I am not talking about donating some spare change of a few cents or ringgit to the beggar in the street and a lady who approached you in the kopitiam saying her son has cancer and needs surgery. I am talking about donating to real, charitable organizations like how the big boys do it. And with that being said, I mean charitable donations which would enable you to get tax deduction. After all, tax planning is one component of financial planning.
And when is the better time to donate to charity than now? Do some good deeds this coming festive season by making donations to some charities , before the year ends. Everyone hates paying tax to IRB right? It never seems to be too little every year. How about getting that money to the less fortunate people who needs it, rather than IRB?
Under subsection 44 of Income Tax Act 1967, gifts of money to Approved Institutions or Organizations is allowable deduction from aggregate income. Bear in mind that the donation amount eligible for deduction is limited to 7 percent of one’s aggregate income. That means if your aggregate income is $ 50,000, you can donate up to $ 3,500 for full tax deductible.
Aggregate income and donations come under section C of your BE form.
I am not one of the big boys, of course, and I don’t act like one. But I intend to start small, and if you intend to do charity too, I hope this video provides a clear instructions on how to do it.
If you ask me, I would also like to make my donations hassle-free. That means, I don’t need to write any cheque or buy any bank draft/money order and send to the charitable organizations via snail mail. I want to be able to get my donations through online without getting my arse off the chair, as convenient as doing online banking or shopping. Not every charitable organizations accept donations in such method, but for those do, they appeal more to people like me.
Here’s how to do it, step-by-step.
Are you with me? 🙂