Question

When you give money to a charity,
Are your gift can be a tax-deductible donation?
(Australian tax law)

Answer 1

Organisations entitled to receive tax deductible gifts are called 'deductible gift recipients' (DGRs). You can only claim a tax deduction for gifts or donations to organisations that have DGR status.A deductible gift recipient (DGR) is an organisation or fund that can receive tax deductible gifts.The person that makes the gift (the donor) is the person that can claim a deduction.Not all charities are DGRs. For example, in recent times crowdfunding campaigns have become a popular way to raise money for charitable causes. However, many of these crowdfunding websites are not run by DGRs. This means donations to these campaigns aren't tax deductible.

To claim a tax deduction for a gift or donation, it must meet four conditions:

*It must be made to a DGR.

*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.

*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.

As long as your donation is $2 or more, and you make it to a deductible gift recipient charity, you can claim the full amount of money that you donated on your tax return. Section D9 on your tax return (Gifts and Donations) deals specifically with charitable donations