To be tax deductible a contribution must:
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.
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.
Where the eligible event is a fundraising auction, only contributions of money are eligible for a deduction.
End of attention
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.