As the end of the financial year rushes towards us, if you have some spare cash hanging around, you may like to make a donation to your favourite charity?
Before you do there are some things you should consider.
If you donate to a registered deductible gift recipient (DGR), and your donation meets the criteria set by the Australian Taxation Office (ATO), then you may be eligible for a tax deduction.
To check if a charity is a DGR you can look them up on the ABN Lookup website, and the criteria you need to meet (per the ATO) are:
- The gift must be made to a deductible gift recipient. We call entities that are entitled to receive tax deductible gifts ‘deductible gift recipients’ (DGRs).
- The gift must truly be a gift. A gift is voluntary transfer of money or property where you receive no material benefit or advantage.
- The gift must be money or property, which includes financial assets such as shares.
- The gift must comply with any relevant gift conditions. For some DGRs, the income tax law adds extra conditions affecting the types of deductible gifts they can receive.
Some of the charities I’ve supported lately include the m.a.d woman foundation, Lifeline South West Vic, Cure for MND Foundation and Carrie’s Beanies for Brain Cancer.
I always recommend looking for a charity you know you will be happy to support, and I hope you will enjoy the warm fuzzy feeling that comes with making a difference!