Tax Deductible Donations

Online Tax Return

If you have donated to a deductible gift recipient (DGR), you may be able to claim a tax deduction.

When donating, determine if you can claim, how much you can claim, when you can claim, what records you are required to keep and what other income tax matters apply.

The amount you can claim depend on the type of gift or contribution you make.

Broadly speaking:

– A gift is a donation of property or money done voluntarily with no material benefit to the donor. It is required to fall within ATO’s definition of a ‘gift type’.
– If you receive a material benefit from the DGR in return for the donation – the donation is called a contribution.

When you are seeking tax deductions, certain rules apply. This includes the gift meeting the following requirements:

– be given to a deductible gift recipient (DGR)
– it is truly a gift
– fall within at least one of ATO’s ‘gift types’
– complying with any extra gift conditions.

What is a gift?

– Transfer of money or property
– This transfer is made voluntarily
– The donor does not expect anything in return for gifts
– The donor does not materially benefit from gifts.

Who can claim?

A tax deduction for a gift is claimed by the person or organisation that makes the gift (the donor) who can be:

– An individual
– A company
– A trust
– Another type of taxpayer.

Membership fees, the cost of attending a fundraising dinner or providing a service are not gifts for tax purposes.

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