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Choose & Support Your Choice Of Charity While Claiming A Tax Deduction

Australians are known to have big hearts and love indulging in charity works by donating quite often. Not only do these charitable donations provide the much needed support to the affected community, but also help taxpayers in saving on tax if the donations done meet the tax deductible criteria.

Tim Loh, Assistant Commissioner said, “Aussies are very charitable and the government is expecting to see a lot of donations coming after the recent flood disaster. This will eventually increase the tax deductions for the financial year.” 

In the financial year 2019–20, it’s estimated that around 4.2 million Australians claimed $3.7 billion as donations to charities and not-for-profit organisations. To make sure your donation is tax deductible, consider donating to a deductible gift recipient (DGR). Only the DGRs endorsed by the ATO and tax laws are entitled to receive tax deductible gifts or donations.

Before donating to a crowdfunding campaign, make sure it is run by a DGR to ensure the amount or gift is deductible at the tax time. To confirm whether an organisation has a DGR status or not, conduct an online check for the ABN Lookup on www.business.gov.au.

If you receive something in return for your donation, it’s important to know that not all gifts are tax deductible. For example, a gold coin, vintage goods, or any other costly entity. No matter, what and how much you are donating, make sure you have a written record of each and every donation you make. Even third-party receipts as evidence are accepted by the ATO.

For donations amounting to $2 or more, you can only claim a tax deduction of up to $10 without a receipt. ATO is committed to making your efforts of supporting more easier. The myDeductions tool in the ATO app can store photos of donation receipts that can be simply uploaded on your donation information to myTax or sent through a registered tax agent in Geelong.

In case, you lost or damaged your tax records in the recent floods, the Australian Taxation Office can help you reconstruct them. For more information about supporting and claiming a tax deduction for donations made for charity, feel free to consult our tax accountants at KPG Taxation.