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.

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