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Inland Revenue says there are three elements to a gift:

1. It has been made voluntarily.

2. It is by way of benefaction – the receiver gets some benefit out of the gift.

3. The donor doesn’t get a significant benefit in return.

   One of IRD’s concerns is school donations. Donations made to a general school fund are real donations so long as they are not a substitution for fees.

   Similarly, a donation for a school trip is not seen as a donation because the student gets the benefit of the trip.