You need to keep good records of your donations. We here at PPartners can provide you with the necessary tools to do this yourself
By keeping a very detailed record of all of your donations throughout each financial year, you are placing yourself in a healthy position to claim back at tax time correctly. The ATO has recently urged all taxpayers who have made donations because last year, nearly two-thirds of all charitable claims adjusted were because the individual or company donating was unable to prove what they had given to charity correctly.
It is great to see how generous Australians are, with a staggering $3.9 billion in gifts and donations to charities and not-for-profits, with 4.2 million Australians claiming deductions.
If you are looking to claim back your charitable donations, there are a few factors that you need to be aware of in order to work through this with the ATO seamlessly.
Firstly, you need to be aware that who you are donating to is a registered charity endorsed by the ATO as a deductible gift recipient (DGR).
Not all charities and not-for-profits are DGRs. Crowdfunding campaigns and support for individuals in need are often making a lot of impacts online these days, but unfortunately, most of the time, these are also not run by DGRs. You can check whether the ATO endorses a fundraising organisation by checking the ABN lookup online.
Secondly, understanding the intention of your donation makes a significant impact on whether you can claim tax back for it. Entering a lottery or a raffle with the purpose of winning something back is not considered a tax-deductible gift.
You need to keep good records of your donations. We here at PPartners can provide you with the necessary tools to do this yourself, or we can record information that you provide us with throughout the year to assist you with this.
Most DGR organisations will issue you with a receipt, although they don’t need to, so don’t rely on them doing this for you after you provide a donation. For bucket collections for approved organisations, you can claim a deduction of up to $10 without a receipt.
You can incorrectly attempt to claim back for workplace donations or donations that you intend to make in your will. Workplace giving is reported to the ATO by employers and has already reduced the amount of tax paid during that period, so, therefore, it cannot be claimed again.
Gifts and donations left in your will are generally not tax-deductible.
If you would like to understand more or need some support with your donations this financial year, do not hesitate to get in touch with the team at PPartners.