For your generosity to be a legitimate tax deduction, the donation needs to meet the following conditions:
- The recipient must have the status of Deductible Gift Recipient (DGR). If you are unsure of the organisation’s DGR status, you can check it here: https://abr.business.gov.au/Tools/DgrListing
- It must be a gift e.g. you are voluntarily gifting money or property without the expectation of a material benefit in return.
- The gift must be money or property, this can include some financial assets and shares.
- The gift must comply with relevant gift conditions. Some DGR’s have extra tax conditions which affects what they can receive.
- Eligible deductions must be a minimum of $2.00 and a receipt is required.
- Donations to School building funds are often tax deductible. Please refer to https://www.ato.gov.au/non-profit/getting-started/in-detail/types-of-dgrs/school-building-funds/ and/or contact your accountant to confirm whether your donation is claimable.
What can’t you claim?
- The purchase of raffle tickets.
- Items such as T-Shirts, mugs, chocolates and key rings that have an advertised price.
- The cost of attending functions such as fundraising dinners.
- Club membership fees.
- A payment where you will have a benefit.
- Gifts to family and friends.
- Donations under salary sacrifice.
- Donations from a will.
Donations made via social media or crowd funding are only deductible if they are a DGR.
More information on tax deductible donations can be found at https://www.ato.gov.au/individuals/income-and-deductions/deductions-you-can-claim/other-deductions/gifts-and-donations/
Updated: 6th December 2021