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Receiving tax-deductible gifts

To be eligible to receive tax-deductible gifts, your organisation must be a deductible gift recipient (DGR).

Last updated 24 July 2017

When people donate to your organisation they may seek a tax deduction.

To receive such a deduction, certain requirements must be met.

The most important things for you to do to ensure your donors can claim tax deductions are:

  • ensure your organisation is a DGR
  • understand gift and contribution conditions
  • provide receipts with specific information.

A donor will follow different rules for claiming a tax deduction depending on whether their donation is a gift or a contribution, so it's also important you understand the difference between a gift and a contribution:

  • A donor does not receive material benefit in return for their gift (for example, a donor puts $5 in a collection box)
  • A donor does receive a material benefit in return for their contribution (for example, a donor purchases a ticket to a fundraising dinner).

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To be tax deductible, your donor's gift must be covered by a gift type, the most common one being a gift of money of $2 or more. Their gift may meet the requirements of more than one deductible gift type. They can use the gift type that is most appropriate for the gift.

As a DGR you are not required to issue a receipt but if you do you must include certain information.