• Tax deductible contributions

    What are the requirements for a contribution to be tax deductible?

    To be tax deductible a contribution must:

    What is an eligible fundraising event?

    Eligible fundraising events are deductible gift recipient fundraising events conducted in Australia. They include:

    • fetes, balls, gala shows, dinners, performances or similar events
    • events comprising sales of goods, if selling such goods is not a normal part of the supplier's business
    • events that have been approved by the Commissioner of Taxation as a fundraising event.

    To be eligible for the concession, the same event cannot be conducted more than 15 times in a financial year.

    What is an eligible contribution?

    There are two types of eligible contributions:

    • a right to participate in a fundraising event (for example, the purchase of a ticket to attend a charity ball)
    • a successful bid at a charity auction conducted by a deductible gift recipient.

    To be tax deductible:

    • the contribution must be
      • money over $150
      • property purchased during the 12 months before making the contribution and valued at more than $150
      • shares acquired at least 12 months before making the contribution and valued at $5,000 or less but more than $150
      • property valued by the Commissioner at more than $5,000
       
    • the benefit received by the contributor must be no more than 20% of the value of the contribution or $150, whichever is less.
    Attention

    Where the eligible event is a fundraising auction, only contributions of money are eligible for a deduction.

    End of attention

    What information should be included on receipts for deductible contributions?

    When a deductible gift recipient (DGR) issues a receipt for a deductible contribution, the receipt must specify:

    • the name and ABN (if any – note, some DGRs listed by name might not have an ABN) of the DGR
    • the fact that the contribution was made for
      • a right to attend a specified fundraising event
      • the purchase of goods and services as a successful bidder at a fundraising auction
       
    •  the amount of the contribution (if money)
    • the GST inclusive market value of the right or the goods or services received in return for the contribution.

    Other information useful for contributors includes:

    • the date the contribution was made
    • a description of the contribution if it was property.
    Further information

    See Tax deductible contributions – Fundraising for an explanation of deductible contributions.

    End of further information
      Last modified: 24 Jun 2014QC 16663