Gifts and fundraising - frequently asked questions

What if I receive something in return for my gift?

In order to be a gift, the donor must not receive a material benefit or an advantage by way of return. It does not matter whether the material benefit or advantage comes from the deductible gift recipient (DGR) or another party.

The following payments are not gifts:

• purchases of raffle or art union tickets
• purchases of items such as chocolates and pens
• the cost of attending fundraising dinners, even if the cost exceeds the value of the dinner
• membership fees
• payments to school building funds as an alternative to an increase in school fees
• payments where the person has an understanding with the recipient that the payments will be used to provide a benefit for the 'donor'.

However, an acknowledgment that a recipient makes in appreciation of a payment can be consistent with the payment being a gift.

Example Clare receives a lapel badge for her donation to a DGR. This is not a material benefit and the donation is a gift.

Other acceptable forms of acknowledgment include stickers, mention in a newsletter or periodical, and plaques if they are of small cost and prominence.

Sections within Tax deductible gifts

• What are the requirements for a gift to be considered a tax deductible gift?
• What is a deductible gift recipient (DGR)?
• Can charities receive income tax deductible gifts?
• How do I check if an organisation is a DGR?
• What is a gift?
• If I make a pledge, have I made a gift?
• Can I retain some right or control of property I have gifted?
• What if I receive something in return for my gift?
• If a transfer is made to a DGR, does it have to be voluntary to be tax deductible?
• What types of gifts are eligible for a tax deduction?
• What are gift conditions?
• What is workplace giving?
• Can employees salary sacrifice donations?
• What are the differences between workplace giving and salary sacrifice arrangements?