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Gifts and Donation
As a citizen of Australia you may have some confusion whether tax is deductable or not for the donation or gift you make to an organisation. Claim in such deduction is applicable if the organisation has the status of being deductible gift recipients (DGRs).
(DGR) is an organisation that is entitled to receive income tax deductible gifts and deductible contributions endorsed by the ATO or listed by name in tax Law. A donor who can claim deduction can be any tax paying entity.

Tax donation qualification attributes
In order to be qualified for deduction you should have the following eligibility

  • Donation must be paid under DGR; 
  • Actual gift should be given without receiving any material benefits from it. Like donation can be tax deductible if you do not receive anything in return;
  • Money gift must be over $2;
  • Property or stocks donation over value $500; 
  • Stock transaction outside business operations.

 When to claim tax deductible donation

Generally, you can claim from the year the donation takes place based on eligibility.  You can also spread any tax deductible donation claims over a five-year period to avoid creating a tax loss and or avoid providing tax on higher income.

Records needed to claim deductions

  • Receipt for a gift or a donation;
  • Name of fund, authority or institution;
  • ABN of DGR (if any);
  • Donor’s name;
  • Detail about donation; 
  • The date the donation was received.

Donation can’t be claimed
You can’t claim personal beneficial items like:

  • Raffle or art union tickets;
  • Items such as chocolates and pens;
  • The cost of attending fundraising dinners membership fees;
  • Payments to school building funds made, for example, as an alternative to an increase in school fees;
  • Payment given for mutual benefits.

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