A deductible gift recipient (DGR) is an organisation or fund that registers to receive tax deductible gifts or donations. However, not all charities are DGRs. For example, crowdfunding campaigns have become a popular way to raise money for charitable causes, but many of these crowdfunding websites are not run by DGRs. Meaning donations to these campaigns and platforms aren’t ductible.

When is a Gift or Donation Deductible?

To claim a deduction for a gift or donation, you must be the person that gives the gift or donation and it must meet the following 4 conditions:

• It must be made to a DGR
• It must truly be a gift or donation
• It must be of money or property
• It must comply with any relevant gift conditions

What You Can Claim

The amount you can claim as a deduction depends on the type of gift:

• Gifts of money – this is claimable but it must be of $2 or more
• Gifts of property or shares
• Gifts under the Heritage and Cultural programs

You can claim the deduction for you gift for the income year in which the gift was given. In certain circumstances, you can elect to spread the tax deduction over a period of up to 5 income years.

What You Can’t Claim

You can’t claim gifts or donations that provide you with a personal benefit, such as:

• Raffle or art union tickets
• Items such as chocolates, mugs, keyrings, hats or toys that have an dvertised price
• The cost of attending fundraising dinners
• Club membership fees
• Payments to school building funds made in return for a benefit or advantage
• Payments where you have an understanding with the recipient that the payments will be used to provide a benefit to you
• Gifts to family and friends
• Donations made under a salary sacrifice agreement
• Donations made under a will

Keeping Records for Gifts and Donations

You should keep records for all tax deductible gifts and contributions you make.

Evidence you need to keep may include:

• Receipts for donations or contributions
• Copy of donations you make to eligible organisations through your income statement or PAYG payment summary
• A signed letter from the eligible organisation confirming the amount of your donation or contribution