Fundraising - Tax basics for non-profit organisations
Tax deductible contributions
Certain DGR fundraising events encourage contributions which may at the same time extend minor benefits to the contributor.
Contributions made by individuals to DGRs in relation to DGR fundraising events such as fetes, balls, gala shows, dinners and charity auctions may be tax deductible.
To be deductible, a contribution must meet several requirements:
the contribution must be made to a DGR for:
a right to attend or participate in a fundraising event in Australia, or
the purchase of goods or services as a successful bidder at an auction that is, or is at, a fundraising event in Australia
the contribution must be more than $150 (and can include property contributions made for a right)
the GST inclusive value of the right or the goods or services (the benefit) must not exceed the lesser of $150 and 20 per cent of the value of the contribution
the contribution must satisfy any gift conditions relating to the DGR as though it was a gift, and
the contribution must be made by an individual.
The deduction is limited to that part of the contribution that is in excess of the benefit received in return for making the contribution.
Testamentary contributions, that is, contributions made under a will, are not tax deductible.
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