GST and fundraising
If your NFP organisation undertakes fundraising activities, the related transactions may be subject to GST.
There are a range of GST concessions for NFP organisations that may be applied to your fundraising activities, while others will help your organisation meet its GST obligations.
If your organisation is an endorsed charity, gift deductible entity or government school, the following concessions may be available to you:
- Raffles and bingo – tickets to raffles and bingo sold by an eligible entity are GST-free provided the holding of the raffle or bingo event does not contravene a state or territory law.
- Fundraising events – an eligible entity may choose to treat all sales it makes in connection with certain fundraising events as input taxed.
- Non-commercial activities – where an eligible entity makes sales and the payment it receives in return for the things it sold is less than a certain percentage of the total amount, the sales are GST-free.
- Accounting on a cash basis – an eligible entity may choose to account on a cash basis regardless of its GST turnover.
- Reimbursement of volunteer expenses – an eligible entity can claim GST credits for reimbursements made to volunteers for expenses the volunteer incurs that are directly related to their activities as a volunteer of the entity.
- Gifts and GST credit adjustments – adjustments of GST credits are not required when an item acquired by a business is subsequently gifted to an eligible not-for-profit entity.
- Donated second-hand goods – sales of donated second-hand goods by an eligible entity are GST-free.
- Non-profit sub-entities – an eligible entity may conduct some of its activities through a non-profit sub-entity, subject to certain exceptions.
- GST religious groups – some charities can be approved as a GST religious group. Transactions between members of the group are excluded from GST.
- Charitable retirement villages – an eligible NFP entity may provide GST-free accommodation, accommodation-related services and meals to residents of such retirement villages.
A range of other GST concessions are also available to NFP organisations. Some of these are:
- Gifts – a gift to an NFP organisation is not considered payment for a sale.
- School tuck shops –an NFP organisation may sell food through a tuck shop or canteen at a primary or secondary school and treat the sales as input taxed.
- GST registration threshold – the registration turnover threshold is higher for NFP organisations than for other organisations.
- GST groups – the requirement to satisfy the 90% ownership test is waived where the entity is an NFP organisation and all the other members of the GST group or proposed GST group are NFP organisations and members of the same NFP association.
If you are an NFP organisation and you undertake fundraising activities, the related transactions may be subject to goods and services tax (GST). There are a range of GST concessions for non-profit organisations that may apply.