The following information is about different types of gifts or donations for which you may be able to claim a deduction at item D9.
Gifts of property
You can claim a deduction for a gift of property (such as land, artwork or memorabilia) to an eligible organisation if:
you purchased the property within 12 months of making the gift, or
you purchased the property more than 12 months before you made the gift and the Australian Valuation Office (AVO) valued it at more than $5,000.
If you purchased the property within 12 months of making the gift, the amount deductible is the market value of the property at the time of the gift or the amount you paid for the property, whichever is less. If you purchased the property more than 12 months before you made the gift and the AVO valued it at more than $5,000, the amount deductible is the value of the property as determined by the AVO.
You cannot claim a deduction for a gift of property if you did not purchase it (for example, you inherited or won the property) unless the AVO has valued it at more than $5,000.
If you have made a gift of property under the Cultural Gifts Program the rules described above do not apply to you. For more information on working out whether you can claim a deduction for a gift under this program, see the publication Cultural Gifts (NAT 8236) available at www.ato.gov.au or phone 13 28 61.
Receiving a benefit
Generally, you cannot claim a deduction for a donation if you received something in return (for example, a raffle ticket, dinner or a reduction in your child's school fees) other than tokens like lapel badges and stickers that promote the organisation. This rule does not apply to certain fund-raising events (see below).
You can claim a deduction for contributions to approved organisations that relate to fund-raising events where you received a minor benefit for your contribution, provided that:
- the contribution meets certain conditions, and
- the benefit you received does not exceed a specified limit.
A fund-raising event includes a fete, ball, gala show, dinner, performance or similar event.
You can claim a deduction if you made:
- a contribution of money or property to attend or participate in (or for the right to attend or participate in) a fund-raising event, or
- a contribution of money to purchase goods or services at a charitable auction.
Your contribution must meet the following conditions.
- It was made to an approved organisation.
- If it was money, it was more than $150.
- If it was property, you had either:
- purchased it within 12 months of making the contribution, and both the market value on the day of the contribution and the purchase price were more than $150, or
- owned it for more than 12 months and the AVO valued it at more than $5,000.
- If it was publicly listed shares, the value was more than $150 and less than or equal to $5,000.
- The fund-raising event was held in Australia.
- The GST-inclusive market value of the minor benefit you received for your contribution must have been worth no more than $150 or 20% of the value of the contribution, whichever is less. The receipt from the approved organisation will show the market value of the minor benefit you received.
Your deduction is the value of your contribution that satisfies the conditions set out above less the GST-inclusive market value of the minor benefit you received. Both of these amounts appear on your receipt.
There is no limit to the number of deductions you can claim for successful bids to purchase goods or services at a charitable auction, provided the above conditions are met.
Gifts of shares valued at $5,000 or less
You can claim a deduction for a gift of shares to an approved organisation if:
- the shares were held in a company that was listed on an approved Australian stock exchange on the day the gift was made
- you acquired the shares at least 12 months before making the gift ('acquired' includes purchased, inherited, won or received as a gift or a bonus)
- the parcel of shares had a market value of $5,000 or less on the day you made the gift
- the parcel of shares was valued at $2 or more.
You cannot claim a deduction for shares that are suspended from trading (other than a mere trading halt).
Gifts of shares held in different companies are separate gifts even if given at the same time.
A deduction is also available to you where you contribute the shares in return for a right permitting you or another individual to attend or participate in a particular fund-raising event in Australia. The gift must satisfy the rules for contributions to fund-raising events, the market value of the shares on the day they are contributed must be more than $150 but less than or equal to $5,000, and the market value of the right to attend or participate in the fund-raising event must not exceed 20% of the value of the shares or $150, whichever is less.
Be aware that capital gains tax applies when you make a gift of shares.