Non-Profit News Service No. 0314 - Claiming deductions for donations to flood relief

The ATO has approved 'bucket donations' for the recent floods in Victoria, New South Wales and Queensland. This means people who give to 'bucket appeals' can claim a tax deduction equal to their contribution up to $10 in their 2010-11 tax return without the usual need to keep a receipt.

Donors are reminded that in order for a donation to be tax deductible, it must be made to a deductible gift recipient (DGR) and if their donation is over $10 then they will need to keep a receipt for tax purposes.

You can check if an organisation is a DGR by visiting www.abn.business.gov.au - enter either the organisation's Australian business number (ABN) or name in the search box.

• If only one record matches your search criteria, the current ABN details are displayed. Scroll down to 'Deductible Gift Recipient'. If the organisation is a DGR, information about its current DGR status is recorded here.
• If more than one record matches your search criteria, a 'Search Results' list is displayed. Select the organisation's ABN to access its current ABN details and scroll down to 'Deductible Gift Recipient'. If the organisation is a DGR, information about its current DGR status is recorded here.

DGRs may also authorise third parties to collect tax deductible donations on their behalf. Where donors make donations through a third party, such as a bank or retail outlet, they should ask for a receipt and keep it with their other tax records.

Where donors are not issued with receipts, other statements and records can be used to assist in the preparation of their tax returns. For information about records that support a claim for a donation, refer to Claiming deductions for gifts in the 'Tax deductible gifts' chapter of our Fundraising guide.

For information about the Non-Profit News Service, including how to subscribe and links to previous articles, see About the Non-Profit News Service. We encourage your feedback and suggestions for future topics to be covered by the news service. You can do this by: emailing us at npc-publications@ato.gov.au phoning us on 1300 130 248.