Gut Cancer Foundation is concerned that a proposed change to donation tax credit rules announced in Budget 2026 could reduce major charitable giving at a time when the need for cancer support, research and advocacy continues to grow.
Under the current system, people who donate to charities can claim back up to one third of their donation through a tax credit, with no upper limit on the amount that qualifies. The proposed change would cap eligible donations at $100,000 per year, meaning donations above that level would no longer qualify for additional tax credits.
Liam Willis, Executive Officer of Gut Cancer Foundation, says the cap risks weakening the ability of charities to deliver services and programmes that many New Zealanders rely on.
“Major gifts play an important role in helping charities plan ahead, invest in longterm programmes and respond to areas of serious unmet need,” Liam says.
“For Gut Cancer Foundation, that support helps us provide practical support services for patients and whānau, fund research, improve access to clinical trials, share trusted information, and advocate for fairer access to cancer treatment and care.“
Gut cancers are collectively the most common group of cancers in New Zealand, with 17 New Zealanders diagnosed every day. Many gut cancers also have some of the lowest survival rates. At a time when patients and families need more support, not less, we should be encouraging generosity and making it easier for people to give.
“Charities like ours will continue working to help fill gaps in the health system, including by delivering support services that help people understand their diagnosis, access reliable information and feel less alone. That becomes harder if a policy change reduces the incentive for large-scale giving.
“Every dollar lost from charitable giving is a dollar that cannot be invested in patient and whānau support, research, awareness, education or advocacy.”
Gut Cancer Foundation says philanthropy makes a significant contribution to New Zealand’s health and community sectors. Large donations often fund work that would otherwise not happen, including support services, innovative research, clinical trial access and programmes that respond quickly to community need.
“Reducing the financial resilience of charities will not reduce the need for our work,” Liam says. “It risks making that work harder to deliver and could place even greater pressure on the health system over time.”
Gut Cancer Foundation is also concerned the proposed change appears to have been announced without meaningful consultation with the charitable sector, philanthropy experts, or the communities who may be affected by reduced charitable support.
“Any integrity concerns in the tax system should be addressed through targeted safeguards, not a broad cap that risks discouraging legitimate philanthropy,” Liam says.
“A change of this significance needs careful consideration. We urge the Government to work with charities and philanthropy leaders before progressing this proposal, so the full impact on giving, services and the people who rely on them is properly understood.”
For more information please contact:
Liam Willis
Executive Officer
Gut Cancer Foundation
liamw@gutcancer.org.nz
027 627 4048
About Gut Cancer Foundation
Gut Cancer Foundation is a New Zealand charity working to improve and save the lives of people affected by cancers of the digestive system, including bowel, pancreatic, stomach, oesophageal, liver, gallbladder and bile duct cancers. The Foundation delivers support services for patients and whānau, funds research and clinical trials, provides trusted information, raises awareness, and advocates for equitable access to treatment and care for all New Zealanders affected by gut cancers.