How To Donate and Make Sure It Is Tax-Deductible

Donating is a great thing to do, but it’s always essential to make sure who you are donating to a registered charity and if the charity is actually receiving your donations.

Here are some tips on what you should check before donating:

  • Checking the person who asks you to donate is the authorised person that represents the charity.
  • Asking for the charity’s pledge form and checking if it contains the name of the organization, the ABN or other registration number, the business address and their logo.
  • Requiring the organization’s contact details and cross-checking if it’s on the telephone directory.
  • Checking if the charity is registered with Australian Charities and NFP Commission on acnc.gov.au.
  • Do not give any charity your credit card or banking details if being contacted by phone.
  • Visiting acamwatch.gov.au/charity scams to find out the latest charity scams.
  • To make your donation tax-deductible, the charity has to be endorsed by ATO as a deductible gift recipient (DGR) organisation. You can check if the charity is a DGR on abr.business.gov.au.
  • Remembering that only donation greater than $2 is tax-deductible and you must claim in your tax return for the financial year in which the donation is made.
  • Donating may affect your pension payment. If you donate more than $10,000 in one financial year or $30,000 in any five financial year period in the form of money or other assets, your pension may not increase and it may decrease. Please visit humanservices.gov.au for more details by searching “gifting”.

At Tax Accounting Adelaide we will check your donations at tax return time. For an appointment to do your tax call us on 83374460 or book in for tax on our website.