Contributions made to deductible gift recipients

Facebook Twitter LinkedIn Mail Us

Contributions made to DGRs for fundraising events

 

Are you?
  • A Taxpayer?
At a glance:
  • Contributions made to deductible gift recipient’s (DGR’s) at fundraising events may be deductible to the contributor.
You should: 
  • Check whether contributions made to DGRs are tax deductible.
  • Contact us if you require any clarification or advice.
  1. Generally, contributions made to DGR’s at fundraising events cannot be claimed as a tax deductible gift as a benefit is received in return.
  2. However, individuals may be able to claim a portion of their payment as a tax deduction if certain conditions are met.
  3. Eligible fundraising events are events that are held by a DGR within Australia and may include fetes, dinners or gala shows.
  4. Eligible contributions to a DGR include:
    • A right to participate in a fundraising event (ticket to attend event); and
    • A successful bid at a charity auction.
  5. For the contribution to be tax deductible, the following conditions must be met:
    • The contribution must be:
      1. Money over $150;
      2. Property purchased during the 12 months before making the contribution and valued at more than $150;
      3. Property valued by the Commissioner at more than $5,000; or
      4. Shares acquired at least 12 months before making the contribution and valued at $5,000 or less but more than $150; and
    • The benefit received by the contributor must be a minor benefit i.e. no more than 20% of the value of the contribution or $150, whichever is less.
  6. For example, if a taxpayer attends a charity auction hosted by a DGR, any successful bids paid with money (cannot be another form of value like property) can be claimed as a tax deductible gift given that the other conditions are also met.
  7. Further, if an individual pays an entry fee and the benefit received is less than $150 or 20% of the contribution (whichever is less) then the remaining portion can be claimed as a tax deduction.
  8. For more information, click here.
Remember: – To check that the organisation is a registered DGR and all conditions are met before claiming a deduction for a contribution made at a charity event.
This article was published on 28/01/2014 and is current as at that date

This article is not a substitute for independent professional advice. We do not warrant the accuracy, completeness or adequacy of the information or material in this article. All information is subject to change without notice. We and each party providing material displayed in this article disclaim liability to all persons or organisations in relation to any action(s) taken on the basis of currency or accuracy of the information or material, or any loss or damage suffered in connection with that information or material. You should make your own enquiries before entering into any transaction on the basis of the information or material in this article. Please ensure you contact us to discuss your particular circumstances and how the information provided applies to your situation.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Join our mailing list today!

Keep up to date with our latest news & updates!