Did you know that not all donations are tax deductible?
For a donation to be tax deductible, the organisation receiving the donation will need to be registered as a Deductible Gift Recipient (DGR) with the ATO.
To check to see if an organisation is a registered DGR, you can input their ABN into the ABN Lookup https://abr.business.gov.au/ website and the Australian Business Register database will be able to tell you.
To be deductible, you must also not receive anything of value back in return. This means raffle tickets are not deductible as you may receive some material benefit or advantage in return.
Some other donations that are not deductible include:
- Payments to school building funds as an alternative or part alternative to school fees.
- Gifts or donations in exchange for membership to an organisation.
- Costs of attending fundraising dinners.
These days, we also see a lot of fundraising activities through crowdfunding platforms such as GoFundMe. Please note that donating to the different causes, no matter what they are, are not automatically deductible. If unsure, ask for their DGR status before you make the donation.
The above are just basic rules in determining the deductibility of donations.
Make sure you are claiming the correct donation deduction in your tax return.
Contact CrossCorp if you need assistance!
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