Ibekimi Oriamaja Reports
The Federal Inland Revenue Service (FIRS) has granted tax deduction status to corporate organizations’ contributions to Mrs. Kemi Adeosun, a former minister of finance.
Tax-deductible expenses are those that a taxpayer or business can deduct from their adjusted gross income. This lowers their income and lowers the overall amount of tax they must pay.
As a result, the FIRS last week in Abuja issued a tax-deductible gifts certificate to Adeosun’s DashMe Foundation.
The former minister established the foundation in June 2021. It is a nonprofit organization with offices in Lagos and programs in Nigeria, the United States, and the United Kingdom.
To rigorously screened registered charities whose operations satisfy Nigeria’s legal requirements for “public character,” the FIRS offers tax-deductible donation certificates. Companies that give to charities with tax-deductible donation certificates are eligible for a “donation relief” under Section 25(c) of the Companies Income Tax Act (CITA).
The donation relief clause intends to persuade Nigerian corporate entities to direct their corporate social responsibility (CSR) donations to properly screened non-governmental organizations, groups, and institutions working on life-altering, socially significant projects.
However, the foundation claimed in a statement released yesterday and made available to Track News that under its new status, business organizations that give to it will now be eligible for donation relief, which allows them to deduct their gifts from their taxable revenues.
Adeosun was thrilled to get a tax-deductible donation certificate for the FIRS for her charity.
She responded to the news by noting that the nation’s top tax agency had issued the certificate in celebration of the charity’s achievements over the previous year and its dedication to improving the lives of underprivileged Nigerians.
The decision would energize the charity’s drive to gain the same tax-exempt status in the UK, she added, noting that the foundation just received a similar certificate in the United States.
“I am thrilled that the FIRS has recognized DashMe Foundation as deserving of this uncommon designation,” Adeosun remarked. We think that knowing that their donations will be fully tax deductible will encourage more corporations to support us.
The certificate will considerably increase our ability to generate more money from the business sector and also increase our capability to start new programs that change the lives of Nigeria’s most vulnerable children, women, and other underrepresented groups.
Tomisin Akinwunmi, the foundation’s temporary chief executive officer, also expressed delight about the fundraising opportunities the charity’s new status offers.
We are happy by this development, she continued. We and our partners will be inspired to do more by this certification because our projects are significantly improving people’s lives. We appreciate the FIRS for giving us the chance to raise money on a scale that would improve our capacity to serve more Nigerians.
The foundation “had raised over N200 million in the past year, through its thrift stores, corporate contribution drives, and snacks business as well as undertaken initiatives in Borno, Cross River, Imo, Kano, Lagos, Nasarawa, Niger, Ogun, and Osun States,” the woman said.
By the end of 2023, the foundation intended to expand its reach across the entire nation, she continued.
In addition to regular food donations to numerous orphanages and IDP camps, its current projects include building orphanages in the states of Imo and Ogun, sponsoring orphans in universities, providing prosthetic limbs and start-up money for amputees, and building projects for orphanages in Imo and Ogun.
