Organisations that are entitled to receive tax deductible gifts are called ‘deductible gift recipients’ (DGRs). You can only claim a tax deduction for gifts or donations to organisations that have a DGR. Deductions for gifts are claimed by the person that makes the gift (the donor). To claim a tax deduction for a gift, it must meet the following conditions:
- The gift must be made to a registered DGR;
- The gift must be a voluntary transfer of money, property, or other financial assets such as shares, where you receive no material benefit or advantage;
- The gift must comply with any relevant gift conditions. For some DGRs, the income tax law adds extra conditions affecting types of deductible gifts they can receive;
- The amount you can claim depends on the type of gift. For gifts of money, it is the amount of the gift, but it must be more. For gifts of property, there are different rules, depending on the type, and value of the property.
If you have any questions regarding donations you have made, or are going to make, please just give us a call on 3351 6111.