Fundraising - Tax basics for non-profit organisations
Workplace giving programs
Workplace giving programs are arrangements where:
part of an employee’s pay is paid, or is to be paid, as a gift to a DGR
the gift is paid by the employer at the direction of the employee, and
the gift is made under a regular planned giving arrangement.
If a portion of an employee’s pay is donated to a DGR through regular payroll deductions, the employer may reduce the PAYG amount it withholds from that employee’s pay. For employees, this means they may get the benefit of the reduced tax immediately in their pay.
While the PAYG withholding amount can be reduced because of a gift made through a workplace giving program, the total pay on the employee’s payment summary is not reduced by the amount of the gift. This means the employee must claim a deduction for the gift in their annual tax return so that the correct tax can be calculated.
DGRs are not required to issue receipts to donors, although an employer may request a receipt from the DGR.
All the employee needs for their tax records is a statement from their employer.
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