GST concessions for charities, gift deductible entities and government schools - Tax basics for non-profit organisations
Fundraising events
A charitable institution, charitable fund, gift deductible entity (see note 2) or government school may choose to treat certain fundraising events as input taxed.
If an organisation chooses to treat a fundraising event as an input taxed fundraising event, it will have to treat all sales it makes in connection with the event as input taxed. The choice must be made before any sales take place.
The organisation will not be entitled to claim GST credits for any acquisitions in relation to the event and it will not be required to charge GST on the sales it makes. The organisation will not be entitled to claim GST credits regardless of whether the supply would have been GST-free had it not made the election.
Proceeds from input taxed fundraising events do not form part of an organisation’s GST turnover. Therefore, if an organisation chooses to treat all sales in connection with certain fundraising events as input taxed, it does not need to register for GST provided its GST turnover is less than $150,000.
There are certain conditions that must be met in order to apply this concession. For more information refer to Non-profit organisations and fundraising(NAT 13095).
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