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Edited version of private ruling
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Ruling
Subject: Donation
Are you entitled to a deduction for a donation made directly to an entity which is not a Deductible Gift recipient (DGR)?
No.
This ruling applies for the following period
Year ended 30 June 2010
The scheme commenced on
1 July 2009
Relevant facts
You donated a large sum of money to a religious institution.
The religious institution is not a DGR.
The religious institution has donated amounts to DGRs and non DGRs totalling less than half the amount you donated.
There is no agreement between you and the religious institution regarding how they are to use the money that you gifted.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 30-15
Reasons for decision
Division 30 of the Income Tax Assessment Act 1997 (ITAA 1997) outlines the guidelines for the deductibility of gifts and donations. Section 30-15 of the ITAA 1997 provides that a gift to any funds and institutions listed is allowable as a deduction in the income year in which the gift is made, provided the gift meets the various conditions of relevant subsections.
To be able to claim a tax deduction for a gift, it must:
1. be made to a DGR
2. be a gift of money or property that is covered by a gift type, and
3. be truly a gift.
In your case, you donated a significant amount of money to the religious institution which is not a DGR. Therefore, as the donation was not made to a DGR, you are not entitled to a deduction.