Businesses collecting donations

You can authorise a business, such as a bank, retail chain or energy provider to collect tax deductible donations from the public on your behalf through mechanisms such as a:

  • direct debit from a customer's bank account
  • separate item on a customer's shopping docket
  • separate charge on a customer's statement of account.

If your DGR decides to participate, you (and the business) should confirm:

  • arrangements for issuing receipts to donors
  • that the arrangements in place meet with any state or territory regulations.

You may prefer to issue receipts and ask that the business supply details of the name, address and amount collected from each donor. Alternatively, you may agree to the business issuing a statement to each donor identifying the amount collected on your behalf.

Example – Supermarket collecting donations for a DGR

Following an overseas disaster, Local People Supermarkets wanted to become a collection point for a DGR, Overseas Helpers. It was up to Local People Supermarkets to ensure that Overseas Helpers had an overseas gift fund for the disaster so that the funds donated by their customers could be used for that purpose only.

Overseas Helpers and Local People Supermarkets made the following arrangements:

  • Local People Supermarkets' checkout docket included all of the following:  
    • Overseas Helper's name and ABN
    • the amount that was donated
    • that the gift was made for the specific disaster
    • the date the gift was made.
  • Local People Supermarkets staff told customers that they needed to retain their docket for tax purposes.
  • Local People Supermarkets substantiated that the donation was forwarded to Overseas Helpers.
End of example

See also:

Keeping records

Last modified: 14 Oct 2015QC 46274