Is my donation tax deductible?

You can claim a deduction for a gift or donation you make to an organisation if it meets 4 conditions:

  • you make the gift or donation to a deductible gift recipient (DGR)
  • it must truly be a gift or donation (voluntarily transferring money or property without receiving, or expecting to receive, any material benefit or advantage)
  • it must be money or property (this can include financial assets such as shares)
  • it must comply with any relevant gift conditions – for some DGRs, the income tax law adds extra conditions affecting the types of deductible gifts they can receive.

What records should you keep?

You should keep records of all tax-deductible donations you make. Evidence you need to keep may include:

  • receipts for donations or contributions
  • a signed letter from the eligible organisation confirming the amount of your donation or contribution

When you make a donation, the DGR will usually issue you with a receipt – but they don’t have to. If this is the case, in some circumstances, you can still claim a tax deduction by using other records such as bank statements.

If a DGR issues a receipt for a deductible gift or donation, the receipt must state:

  • the name of the fund, authority or institution to which the donation has been made
  • the DGR’s ABN (if one exists – some DGRs listed by name might not have an ABN)
  • that the receipt is for a gift or donation. If you donate through a workplace giving program your payment summary or a written record from your employer is sufficient evidence

When can’t you claim a deduction?

You can’t claim a deduction for gifts or donations when they provide you with a personal benefit, such as:

  • lottery, raffle or art union tickets
  • fundraising items, such as chocolates or keyrings with an advertised price
  • club membership
  • the cost of attending fundraising dinners
  • payments to school building funds made in return for a benefit or advantage – for example, as an alternative to an increase in school fees or as a placement on a waiting list
  • gifts to families and friends regardless of the reason
  • donations made under a salary sacrifice arrangement
  • donations made under a will.

You can’t claim a deduction for gifts or donations made to social media, crowdfunding platforms or memberships (such as sporting club memberships) unless they are a registered DGR.

If you have questions in relation to the above, or any other matters, please do not hesitate to contact our office on 1300 620 345.