Tax Deductible Contributions – Fundraising Events
Reference: Australian Taxation Office www.ato.gov.au
To be tax deductible, a contribution must:
• Be made to a Deductible Gift Recipient (DGR).
• Be in respect of an eligible fundraising event.
• Be an eligible contribution.
• Comply with any relevant gift conditions.
• Be made by an individual.
Eligible Fundraising Events
Eligible fundraising events are Deductible Gift Recipient events conducted in Australia and include:
• Fetes, balls, gala shows, dinners, performances or similar events.
• Events comprising sales of goods, when selling such goods is not a normal part of the organisation’s business.
• Events that have been approved by the Commissioner of Taxation as a fundraising event.
To be eligible for the concession, the same type of event cannot be conducted more than 15 times in a financial year.
There are two types of eligible contributions:
1. A right to participate in a fundraising event (e.g. buying a ticket to attend a charity ball).
2. A successful bid at a charity auction conducted by a DGR.
To be Tax Deductible 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.
• PLUS the benefit received by the contributor must be no more than 20% of the value of the contribution or $150, whichever is less.
What is a Gift?
Gifts have the following characteristics:
• They are made voluntarily
• There is a transfer of money or property
• They do not provide a material benefit to the donor, and
• They essentially arise from benefaction, and proceed from detached and disinterested generosity
The following payments to Deductible Gift Recipients are NOT gifts:
• Purchases of raffle or art union tickets
• Purchases of chocolates or pens
• The cost of attending fundraising dinners, even if the cost exceeds the value of the dinner*
• Membership fees
• Payments to school building funds as an alternative to an increase in school fees, and
• Payments where the donor has an understanding that contributions they make in payments will be used to provide a benefit to the ‘donor’
*Individuals may be entitled to claim a tax deduction for contributions they make in relation to fundraising events such as fundraising dinners and charity auctions.
• Money $2 or more.
• Property >$5,000: property valued by the tax office at more than $5,000.
• Property purchased during the 12 months before the gift was made.
• Listed shares valued at $5,000 or less, and acquired at least 12 months before the gift is made. (Gifts of shares must be made on or after 1 July 2007 to comply.)
• Trading stock disposed of outside the ordinary course of business.
• Cultural Gifts – property under the Cultural Gifts Program.
• Cultural Bequests – property under the Cultural Bequests Program.
• Heritage Gifts – places listed in the National Heritage List, Commonwealth Heritage List or the Register of the national Estate.
For further information please visit the ATO website www.ato.gov.au
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