• Tuesday, March 05, 2024
businessday logo

BusinessDay

FIRS certifies donations to Adeosun’s charity as tax deductible

FIRS

The Federal Inland Revenue Service (FIRS) has certified tax deductible corporate donations made to DashMe Foundation, a charity organisation established by the former Finance Minister, Kemi Adeosun.

Consequently, the FIRS issued a tax-deductible donations certificate to DashMe Foundation last Thursday in Abuja.

In a statement on Sunday, the DashMe Foundation said corporate organisations which donate to it will now enjoy relief under its new status, which is an allowance to deduct their donations from their taxable profits.

FIRS issues such tax-deductible donations to carefully vetted registered charities whose operations meet Nigeria’s statutory ‘public character’ requirements. Section 25(c) of the Companies Income Tax Act (CITA) permits companies which make charitable donations to charities with tax-deductible donations certificates to a ‘donation relief’.

The donation relief provision is aimed at encouraging Nigeria’s corporate bodies to channel their Corporate Social Responsibilities (CSR) donations to carefully-vetted non-governmental bodies, associations and institutions engaged in life-changing, socially-relevant projects.

Founded by the former finance minister, Kemi Adeosun, in June 2021, DashMe, a Lagos-based charity with operations in Nigeria, the United States and the United Kingdom.

Since its launch in June 2021, the foundation has raised over N200 million through its thrift shops, corporate donations drives and snacks business.

Read also: Subsidy probe: We only enforce tax, FIRS tells lawmakers

Reacting on the development, Adeosun expressed delight over the certificate to DashMe Foundation and the organisation’s new status.

She noted that the issuance of the certificate by the federal tax body is a recognition of the organisation’s strides in the past year as well as its commitment to changing the lives of vulnerable Nigerians.

Adeosun recalled that DashMe was recently granted a similar certificate in the United States, and added that the approval would energise the charity’s drive to obtain the same tax-exempt status in the United Kingdom,

“I am delighted that FIRS has recognized DashMe Foundation as being worthy of this rare status. We believe that more corporate bodies will be incentivised to donate to us now that they know that their donations will be fully tax deductible.

“The certificate will significantly enhance our capacity to raise more funds from the corporate sector and also enhance our ability to initiate more life-changing projects for Nigeria’s most vulnerable children, women and other disempowered groups,” she stated.

For Tomisin Akinwunmi who is DashMe’s interim Chief Executive Officer, the new certification brings a lot of funding hope and possibilities for the charity Organisation.

“We are thrilled by this development. Our projects are making a huge difference in the lives of people and this certification will encourage us and our partners to do more,” he stated.

“We are thankful to the FIRS for providing us with an opportunity to raise funds at a scale that would enhance our ability to reach more Nigerians,” Akinwunmi added.

Akinwunmi said the Foundation has not only raised over N200 million in the past year, through its thrift shops, corporate donations drives and snacks business, but has also undertaken projects in Borno, Cross River, Imo, Kano, Lagos Nasarawa, Niger, Ogun and Osun States.

She disclosed plans by the Foundation to extend its operations to all parts of the country by the end of 2023.

The Foundation’s current projects include orphanage building projects in Imo and Ogun states, sponsorship of orphans in universities, provision of prosthetic limbs and start-up capital for amputees, as well as regular food donations to several orphanages and IDP camps.