Income tax - frequently asked questions

Fundraising

Are proceeds from fundraising assessable?

Whether a non-profit organisation has to pay income tax on proceeds it receives (receipts) from its fundraising activities will depend on whether the organisation is exempt from income tax. Being exempt from income tax means that your organisation will not be assessed on its receipts and it does not have to lodge an income tax return (unless specifically asked to).

If the organisation is not exempt from income tax, the nature of the receipt is also a determining factor on whether the proceeds are assessable. For example, receipts derived from mutual dealings with members of your organisation are not assessable income.

Are fundraising expenses deductible?

For organisations that are not exempt from income tax, fundraising expenses will be tax deductible to the extent they are incurred in deriving assessable income.

For more information about: income tax and fundraising, refer to Non-profit organisations and income tax - Fundraising. mutual receipts, refer to Mutuality and taxable income.