Important Notice: Proposed Donation Tax Credit Changes
What This Could Mean for New Zealand Advancement
The New Zealand Government has announced proposed changes to the donation tax credit, including a $100,000 annual cap on donations eligible for the 33.33% credit.
This is not a cap on how much a person can give. However, it would limit the amount of annual giving that qualifies for the donation tax credit. For donors considering major gifts, this may affect the timing, structure and after-tax cost of their philanthropy.
For educational institutions, the potential impact is significant. Major gifts often support scholarships, bursaries, capital campaigns, endowments, specialist learning spaces, community programmes and long-term strategic priorities. Even if only a small number of donors are directly affected, those donors often play an important role in enabling transformational educational outcomes.
Educate+ has prepared a short briefing note to help you understand the proposed changes and consider the possible implications for your institution. We will also be sharing a short survey with you to gather evidence about how these changes may affect your current campaigns, major gift conversations, donor behaviour and future philanthropic planning.
Tertiary Response
- The UDANZ members met today and will each be preparing a report on the potential implications and mitigation options for their university leaders to submit to Government
- Mark Bentley from University of Auckland, is going to put forward a response, on behalf of UDANZ, to Universities New Zealand which we hope will be shared with Government
- UDANZ will also encourage Philanthropy NZ to provide a response and to liaise with donors as to how they think this might impact their giving.
Call to Action
We encourage you to:
- Read the briefing note and share it with your Principal, Head, Vice-Chancellor, Board, Foundation Trustees or senior leadership team
- Complete this short educate+ survey so we can gather sector evidence and represent member concerns clearly
- Consider writing to your local MP to explain how educational philanthropy supports students, families and communities and what the impact of this change could mean to your community
- Consider writing to relevant Ministers, including those responsible for Revenue, Finance, Education and the Community and Voluntary Sector, asking that the proposed cap be reconsidered or reviewed in light of its possible impact on major gift philanthropy. Use real examples where possible, including scholarships, capital projects, endowments or community programmes that rely on larger philanthropic support
- Visit the educate+ website for updates on this issue
At this stage, our focus is on ensuring members are informed, that the voice of educational Advancement is heard and that any policy and legislative discussions reflect the practical reality of fundraising in schools, tertiary institutions, residential colleges and educational foundations across New Zealand.
Please respond by 25 June 2026 and I encourage you to send through any questions or comments you may have.
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Keep the Pressure On
EDM to Members 24 July 2026
Educate+ continues to monitor the proposed changes to New Zealand’s donation tax credit settings and the potential impact these may have on educational philanthropy.
As outlined in our recent member briefing, the Government has proposed a $100,000 annual cap on donations eligible for the 33.33% donation tax credit. This is not a cap on how much someone can give. However, it would limit the amount of annual giving that qualifies for the donation tax credit, potentially changing the after-tax cost, timing and structure of major gifts.
For schools, tertiary institutions, residential colleges and educational foundations, this matters. Major gifts often support scholarships, bursaries, endowments, capital projects, specialist learning spaces and community programmes. Even where only a small number of donors may be directly affected, those donors can play a significant role in enabling long-term educational impact.
In the lead-up to the September election in New Zealand, we encourage you to keep this issue visible to ensure decision-makers understand the practical implications for philanthropy, educational opportunity and community benefit. Please consider:
- Sharing the educate+ briefing note with your Head, Principal, Board, Foundation Trustees or senior leadership team
- Writing to your local MP or local candidates to explain how major gifts support your institution and community
- Writing to relevant Ministers asking for the proposed cap to be reconsidered and providing real examples of scholarships, bursaries, capital projects, endowments or community initiatives that rely on philanthropic support.
The more clearly we can demonstrate the practical impact of this proposal, the stronger our collective voice will be.
