It’s coming close to the season of giving, and Australians might be looking to pay it forward to those in need.
Making a charitable donation is a great way to round out the end of the year and boost the deductions that you’ll be able to make in next year’s return.
It’s also for a good cause.
For a donation to be tax-deductible, the ATO must recognise the charity as a Deductible Gift Recipient (DGR), and it must be a genuine gift. You will not be able to benefit from the donation if you receive a benefit from it (e.g.a raffle with a prize will not count, even if the proceeds go to a charity).
Before you start your gift of charitable giving this holiday season, you should check:
» You might want to donate money to a church – however, this will only be deductible if the church is a registered DGR. Otherwise, it’s nondeductible.
» The charity’s website should inform you whether or not the amount is partly or fully deducible, but if you are still not sure that it can be claimed as such, contact the charity directly.
After making the deduction, be sure to:
If you want to look into other deductions that you could be claiming back this coming holiday season, you should start a conversation with us as soon as possible.