Are Charity Donations Tax Deductible?
Donating to charity is a great way to contribute to a cause you feel passionate about whilst boosting your tax return.
Charity donations are tax deductible, however you should be aware of what constitutes a tax deductible donation so you can claim it correctly on your tax return.
What is a tax-deductible donation?
A tax deductible gift or donation will reduce your taxable income, resulting in a higher refund on tax paid throughout the year or a reduced ATO debt when you complete your tax return.
Every donation you make to charity is only tax deductible if the organisation is an ATO endorsed deductible gift recipient (DGR). Australian Cancer Research Foundation (ACRF) is a DGR organisation and also has the registered charity tick from the Australian Charities and Not-for-profits Commission (ACNC). This means that ACRF complies with the transparency and accountability standards of the ACNC Charity Register.
To claim a tax deduction for a gift or donation, it must also meet the below conditions:
- It must be made to a DGR organisation.
- It must truly be a gift or donation – that is, you are voluntarily transferring money or property without receiving, or expecting to receive, any material benefit or advantage in return. A material benefit is an item that has a monetary value such as a raffle ticket, fundraising chocolate or fundraising dinner ticket.
- The gift or donation must be of money or property. This can include financial assets such as shares.
- The gift or donation must comply with any relevant gift conditions. For some DGRs, the income tax law adds extra conditions affecting types of deductible gifts they can receive.
To claim a tax deduction, you must have a record of your donation, such as a receipt. ACRF provides prompt receipting for all donations.
For full information on charity donation tax deductions, please visit the ATO website – Gifts and Donations or speak with your financial adviser or accountant.
Are charity donations tax deductible?
A tax deductible donation is an amount of $2 or more that you donate to an organisation endorsed as a Deductible Gift Recipient (DGR). It must be a genuine gift – meaning you cannot receive any benefit from the donation. Funds that are donated in exchange for benefits such as raffle tickets, fundraising chocolates, or fundraising dinner tickets, however genuine, are not tax deductible. However, pins, tokens, wristbands and stickers are deemed by the ATO as having no material value and are used by the DGR as marketing and promotional material.
All donations of $2 or more to ACRF are tax deductible.
Are donations to charity auctions tax deductible?
Donations to charity auctions are tax deductible if:
- There is a transfer of money or property and the organisation is a DGR.
- The transfer is made voluntarily.
- The donor does not expect anything in return for the gift.
- The donor does not materially benefit from the gift.
Are overseas charity donations tax deductible?
All Australian charities that operate overseas must be registered with the Australian Charities and Not-for-Profit Commission (ACNC) who have set standards that govern how a registered charity must manage its activities and resources outside Australia. This in addition to the ATO’s, Overseas Aid Gift Deduction Scheme (OAGDS) enables Australian organisations to issue tax deductible receipts for donations to their overseas aid activities. These activities must be to support aid activities in countries that are declared as ‘developing’ by the Minister for Foreign Affairs.
Donations to overseas charities not registered in Australia, are not tax deductible.
Are corporate donations to charity tax deductible?
Corporate donations to DGRs are tax deductible. Businesses can claim the same benefits from donating that individuals do. Just like an individual donation, a corporate donation must be $2 or more in value to be tax deductible. Learn more about ACRF’s Corporate Giving partnerships.
Make a tax-deductible donation to ACRF today
All donations of $2 or more to ACRF, at any time of the year, are tax deductible but there has never been a better time to give than now.
Our tax appeal is currently underway and until 30 June 2022, 100% of every donation is going directly to vital cancer research. That means your tax-deductible donation can have an even bigger impact. Donate to our tax appeal today.
Related reading: Does donating to cancer research help?
