Making a donation to a charitable organization is not only a generous act — it can also carry tax benefits when done right. In Malaysia, when you give a donation to a charity that has been approved by the Lembaga Hasil Dalam Negeri (LHDN) under Subsection 44(6) of the Income Tax Act 1967, you become eligible to claim a deduction from your aggregate income when filing your tax return. Essentially, you reduce your taxable income by the amount donated which lowers the tax you owe.
The benefits of this tax exemption are clear. First, it incentivizes giving — your money goes further because you receive tax relief. For individuals or companies, donations to approved charities reduce their tax burden. Second, it encourages transparency and accountability in the charity sector, since organizations must meet approval criteria and issue official documentation.
Which brings us to another important point: the need for an official donation receipt. To qualify for the deduction, you must have a proper receipt from the charity, showing your name, the donation amount, date, and the charity’s approval reference. Cash donations without an official receipt do not qualify.
Before you donate, it’s vital to check that the organization has tax-exemption status. Donations given to organizations not approved by LHDN will not be deductible. Always ask for the charity’s approval reference, and verify if necessary.
Here at Grace Home Klang, you’ll be pleased to know that our organization is LHDN-approved for tax exemption. That means when you donate to Grace Home Klang, provided all criteria are met, you may claim the deduction. Giving that not only supports our mission of caring for abused, homeless or neglected women and elderly — but also qualifies you for tax benefits.
By understanding how tax exemption works, keeping your receipts, and confirming the organization’s status, your donation becomes doubly impactful: you give hope to those in need and make smart use of your tax position.
Thank you for considering a donation to Grace Home Klang, where compassion meets accountability.
Sincerely yours,
Desmond Teo
Chairman