Kiwisport is a new initiative aimed at increasing the number of school aged children participating in organised sport during school hours and after school by strengthening links with sports clubs. Primary schools received the first instalment under the new initiative as part of the October operations grant payment. This funding should be spent on authorised activities under the Kiwisport initiative, however given the payment was received late in the financial year the majority of funds received during the 2009 financial year may not have been utilised.

How you can help donors claim their tax credit Anyone who makes a donation of $5 or more to an approved “donee” organisation can claim a tax credit from Inland Revenue – provided the claim is supported by a valid receipt. A payment is a “donation” if the payer receives no direct benefit in return. School fees qualify as a donation, provided they go to the school’s general fund.

Do you have the IRD’s Education Centre booklet? While we are always happy to talk to you, our 'Audit Excellence' team find that many of the common taxation queries we are asked by schools are covered and well explained in an existing IRD publication.

How should this grant be treated? This is possibly the most common question we get asked by schools. While we would love to be able to give one simple answer in this newsletter, unfortunately it isn’t that easy. We can however offer some general advice that may assist.