Gifts and fundraising - frequently asked questions

How much can be claimed?

The amount of the deduction depends on the type of gift. For gifts of money, it is the amount of the gift. For gifts of property, there are various valuation rules.

A deduction for a gift cannot add to, or create, a tax loss for the donor.

Example Dominic's assessable income in his tax return for 2006-07 is $15,000. He has donated $20,000 to a DGR during that year. He has no other income or deductions in his tax return. The tax deduction he can claim for his gift is limited to $15,000. This is because a deductible gift cannot add to or create a tax loss. Therefore, Dominic's taxable income becomes nil and the excess $5,000 from his gift cannot be carried forward to a later tax return as a tax loss.

However, donors can elect to spread deductions for certain gifts over a period of up to five years.

Sections within Claiming deductions for gifts

• Who can claim a deduction?
• How much can be claimed?
• Can donors apportion gift claims?
• Is the cost of attending a fundraising dinner (or similar function) a tax deductible gift?
• If the ticket price of a fundraising dinner exceeds the cost of the dinner, can donors claim a tax deduction?
• If the ticket price of a fundraising dinner is split into a dinner component and a 'gift' component, can donors claim a tax deduction for the 'gift' component?
• Are testamentary gifts deductible?
• Can a volunteer claim a tax deduction for donations of services, money or property to a non-profit organisation?
• What information should be included on receipts for gifts?