Contributions made to DGRs for fundraising events
|At a glance:
- Contributions made to deductible gift recipient’s (DGR’s) at fundraising events may be deductible to the contributor.
- Check whether contributions made to DGRs are tax deductible.
- Contact us if you require any clarification or advice.
- Generally, contributions made to DGR’s at fundraising events cannot be claimed as a tax deductible gift as a benefit is received in return.
- However, individuals may be able to claim a portion of their payment as a tax deduction if certain conditions are met.
- Eligible fundraising events are events that are held by a DGR within Australia and may include fetes, dinners or gala shows.
- 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.
- For the contribution to be tax deductible, the following conditions must be met:
- The contribution must be:
- Money over $150;
- Property purchased during the 12 months before making the contribution and valued at more than $150;
- Property valued by the Commissioner at more than $5,000; or
- 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.
- 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.
- 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.
- For more information, click here.
||– 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.