The Australian Taxation Office (ATO) is reminding taxpayers to make sure they have a record of the donations they are claiming this tax time. Nearly two thirds of the charitable claims adjusted last year were due to the taxpayer having no evidence of the donation.

More than $3.9 billion was claimed as deductions as gifts and donations to charities and not-for-profits (NFPs) in 2018–19, but not all gifts and donations are tax deductible.

There are four reasons a donation or gift may not be tax deductible.

1. The organisation receiving the donation or gift is not endorsed by the ATO as a deductible gift recipient (DGR)

Not all NFPs are DGRs, including crowdfunding campaigns that raise money for charitable causes and individuals in need. Donations to foreign charities and NFPs that are not registered as Australian DGRs are also not deductible.

2. The donation made includes an expectation to receive a monetary or personal benefit or advantage in return

Money spent buying a chocolate (fundraising chocolate), a raffle ticket or an item from an op shop is not tax deductible.

3. No records or receipts of the donation

The ATO accepts third-party receipts as evidence of a donation, however, if you made one or more donations of $2 or more to bucket collections conducted by an approved organisation for natural disasters, you can claim a tax deduction of up to $10 for those contributions without a receipt.

4. Testamentary gifts and workplace giving

A testamentary gift is a gift made under the terms of a will that does not become effective until the death of the donor. Testamentary gifts are generally not tax deductible and workplace giving would have already reduced the amount of tax paid in each pay period.

It is crucial that you have evidence of any donations you have made if you wish to claim it as a tax deduction. If you have any questions regarding donation tax deductions, please give us a call on 03 5443 0344 or email afs@afsbendigo.com.au