Part 4 - Fundraising, gifts and donations

Issue 1: How will revenue-raising activities such as sponsorships (including 'in kind' sponsorships and 'contras'), gala events and membership fees be treated?

Non-interpretative – straight application of the law


There is a need to differentiate between the different types of revenue raising activities.

Sponsorships usually require the recipient to do something, for example, provide advertising. The provision of these rights is a taxable supply. The sponsor will generally be entitled to input tax credits where it has been made as part of carrying on their enterprise.

Membership fees and gala events are generally payments in return for services or rights and therefore will be subject to GST.

Other revenue raising events by a charity which is registered for GST and where the supplies are for nominal consideration or a supply of second hand goods will be GST-free. Raffles and bingo conducted by charities are GST-free. Most other supplies made by charities will be taxable. Charities will be able to claim input tax credits for acquisitions used to make taxable or GST-free supplies.

    Last modified: 18 Nov 2013QC 27139