Events & tax deductions
Charitable contributions
Certain fundraising events encourage contributions which may at the same time extend minor benefits to the contributor. As benefits are received in return, contributors would not be entitled to claim the contribution as a tax deductible gift.
Recent changes to the law now allow a portion of such transfers to be claimed as a tax deductible contribution where:
- the value of the contribution is more than $150, and
- the minor benefit received in return is no more than $150 or 20% of the value of the contribution, whichever is less.
Tax deductions for contributions are limited to individuals and cannot be claimed by companies. Deductions are available only where the contribution is made to a DGR. Political parties are not eligible for this concession.
Example
Maria pays $260 to attend a charity golf game, hosted by a DGR. The market value of an 18-hole golf game is $20. Maria can claim a tax deductible contribution of $240 ($260 — 20) as the market value of the golf game (the minor benefit received) is less than $150 and 20% of the value of her contribution.
Example
Phillip pays $300 to attend a play hosted by a DGR, which is open to the public and costs $30 a ticket on the open market. Phillip can claim a deduction of $270 ($300 – 30).
Example
Roberto buys a ticket for $400 to a gala performance organised by a DGR. The gala performance has a ticket price on the open market of $100. Roberto cannot claim any deduction as the market value of the performance — which is the benefit ($100) he receives in return for his contribution of $400 — is greater than 20% of the value of his contribution ($80), even though it is not more than $150.
