Donations to assist disaster victims
In response to a disaster, you may wish to make a donation to a relief fund or establish a fund yourself.
Donating to disaster relief appeals
Gifts of cash to the value of $2 or more to a disaster relief appeal are deductible if the organisation receiving the gift is endorsed as a deductible gift recipient (DGR). A DGR is an organisation that is entitled to receive tax-deductible donations.
If you are unsure whether an appeal to which you wish to donate is a DGR, you can check the status on the Australian Business Register (ABR) at www.abr.business.gov.au or by phoning us on 1300 130 248.
If you donate to a bucket appeal that has been approved by us for a specific disaster, you can claim a tax deduction equal to your total donations up to $10 without the usual need to keep a receipt.
You can claim a deduction for gifts of property you make to a DGR under certain conditions.
For gifts of property, there are also various valuation rules. However, if you purchased the property during the 12 months before making the gift, the amount you may claim is the lower of the price you paid for the goods or property, or their market value when you made your donation.
Other types of property donations may also be tax deductible.
Attending fundraising events
Many DGR fundraising events encourage contributions that give minor benefits to those who contribute. Where a material benefit is received in return, the contributor is not entitled to claim the contribution as a tax deductible donation.
However, contributions made by individuals to DGRs in relation to eligible fundraising events, such as fetes, balls, gala shows, dinners and charity auctions will be tax deductible if they meet certain conditions.
Setting up a tax-deductible appeal
If your organisation wishes to collect money for disaster relief, it may be more expedient to arrange with an established DGR for you to collect money on their behalf. The DGR will already have the required infrastructure in place to collect gifts that are tax deductible and issue receipts.
If your organisation wants to establish its own tax deductible appeal fund, you will need to consider whether your organisation (or the fund) can be endorsed by us as a DGR.
You can call us on 1300 130 248 about fundraising events and setting up an appeal fund.
Whether as an individual or an organisation, you may wish to collect funds or make donations to help victims of a disaster.