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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:

  1. The gift must be made out to a DGR.
  2. It must truly be a gift, there should be no material benefit or advantage from the transfer of money or property.
  3. The gift must be covered by one of the gift types, these include money, property and shares.
  4. 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.

How much do I claim and when?

Depending on the type of gift, the amount of the deduction you can claim varies. If the gift is money, it is the amount of the gift, but it must be more than $2. Generally you will claim your tax deduction for the income year in which the donation was made.

What can’t I claim?

Any donation or gift that provides you with an advantage or benefit cannot be claimed as a tax deduction due to it not truly being a gift. These include the following;

  • Raffle tickets
  • Items, such as chocolate
  • Fundraiser dinners, even if the cost exceeds the value of the dinner
  • Membership fees

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