As School Donations are voluntary contributions, schools do not have to pay GST on the money they collect. New Zealand tax residents can claim 33.33 percent of the donation back through the Inland Revenue Department, by filing a Tax credit claim form (IR 526) with the donation receipt attached after the end of the tax year (i.e. 31 March) in which the donation was made.
Schools that withhold items or activities that are fully funded by the school donation, such as the school magazine, are threatening the tax status of their School Donations. The Ministry states that this action...
...implies that the school donation is not a voluntary donation at all but, at least in part, is a payment for goods and services. This may mean that all school parents would be unable to claim an income tax rebate on their "donation" and the board would have to pay GST on all the money it collected by way of school "donations". Furthermore, withholding an item can have other consequences eg if the student ID card is used as a swipe card to enable students to borrow library books, to withhold the card from students whose parents have not paid the school donation would have the effect of denying the student a privilege that is available to other students. (It is also worth remembering that the library building has been provided by Government and most of the books will have been purchased with operational funding.)