Are Gifts and Donations Tax Deductible?
A gift or donation to an organisation is only tax deductible if they have the status of deductible gift recipients (DGRs)
What is a Deductible Gift Recipient (DGR)?
A DGR is an organisation who is entitled to receive income tax deductible gifts and contributions. For example Amnesty International Australia.
How do I claim a tax deduction for a gift or donation?
There are four conditions that must be met in order for you to claim a tax deduction. These include:
- The gift must be made out to a DGR.
- It must truly be a gift, there should be no material benefit or advantage from the transfer of money or property.
- The gift must be covered by one of the gift types, these include money, property and shares.
- The gift must comply with any relevant conditions. For some DGRs, the income tax law adds extra conditions affecting the types of deductible gifts they can receive.