Have you made charitable gifts or donations in the past financial year? Many Australians can boost their tax refunds through deductible donations. However, not all gifts and donations are deductible, and special rules apply in some cases. Here’s what you need to know to get it right this tax time.

Understanding Deductible Donations

When collecting your donation receipts, it’s important to understand what can and cannot be claimed as a deduction in your tax return:

1. Donations to Deductible Gift Recipients (DGRs):
   • To be deductible, donations of $2 or more must be made to a DGR.
   • A DGR is an entity registered with the ATO to receive deductible donations.
   • You can check an organisation’s DGR status on the ABN Lookup website.
   • Note: Some charities and many online crowdfunding platforms are not DGRs, meaning donations to them may not be deductible. Platforms like GoFundMe may run campaigns for DGRs, so check with the platform or ask your accountant for advice.
2. Receiving Benefits in Return:
   • Donations are only deductible if you did not receive a benefit in return.
   • You cannot claim a deduction for donations where you received raffle tickets, toys, or food items in return.
   • Receiving a small “token” item like a sticker or lapel pin is an exception and does not disqualify the donation.
3. Special Types of Gifts:
   • Certain donations have special rules, so seek expert advice for:
     • Gifts to political parties and independent candidates
     • Gifts of shares or property
     • Gifts under the Cultural Gifts Program and heritage gifts to a National Trust organisation

Record-Keeping Requirements

• Small cash donations totaling up to $10 do not require a receipt.
• For larger donations, keep evidence such as an electronic copy of the receipt or a bank statement.
• Donations made through a workplace giving program can be claimed based on the amount shown in your income statement or payment summary. This is different from salary-sacrifice arrangements and does not reduce your gross salary or wages.

Need Help with Deductions?

Contact our office for expert assistance in reviewing your deductions and ensuring you receive your full entitlement this tax time. We’re here to help you navigate the rules and maximize your tax refund.