Claiming donations on taxes

Claiming donations on taxes

Claiming donations on taxes can seem complex, but understanding this can bring significant benefits both to donors and those in need that the eligible charity supports. That’s why Save the Children Australia has prepared this handy guide to claiming charity donations on tax, so you can help us make a tangible difference while enjoying tax advantages. Here’s everything you need to know about claiming donations on taxes in Australia.

What is claiming charity donations on tax?

You’ve probably heard before that donations made to a qualified charitable organisation can be claimed as a tax deduction, but what does this actually mean? 

In Australia, you can claim donations of over $2 AUD on your taxes, providing a financial incentive to contribute as the amount you donate can be deducted from your pre-tax income, potentially reducing the amount of income tax you owe. 

Donating to Save the Children Australia also directly supports initiatives like emergency response programs, education projects, and health services for children in need. For businesses, supporting charities can enhance customer satisfaction, boost brand loyalty, and foster a positive workplace culture.

Note: The tax benefit of donating will depend on the size of your donation and income, your tax bracket, and other expenses. If you require specific advice on your financial situation, contact your tax agent or the ATO.

Eligible organisations for claiming donations

To ensure your donations are eligible, the charity must be a Deductible Gift Recipient (DGR). Save the Children Australia is a registered DGR, making all donations to us above $2 AUD applicable for claiming. To verify an organisation's DGR status, use the Australian Business Register’s ABN Lookup tool.

Can you claim donations on your tax return?

When claiming charity donations on your tax return, these conditions must be met:

• The charity must have DGR status.
• The donation must be a true gift without receiving any material benefit in return.
• The donation should be in the form of money, property, or other financial assets such as shares.
• Proof of donation, such as a receipt, is necessary for claims totalling above $10.
• The donation must meet any relevant gift conditions.
• You can claim the deduction for the income year you made the donation, but spreading the deduction over up to five years is possible under certain conditions.

When it’s time to file your taxes, ensure all receipts and documentation are ready. If you use a registered tax agent, provide them with these receipts to facilitate your claim. More details can be found on the ATO’s website on claiming charitable donations.

Save the Children Australia makes it straightforward to support our cause while benefiting from tax deductions, simply choose your donation type, and we’ll provide the receipt digitally or by mail (your preference):

• Single Donation: Make a one-time donation to support children in need and immediately receive your tax receipt.
• Monthly Giving: Become a regular donor to provide ongoing support. You should receive a receipt in July of your donations for the financial year.
• Alternatively, donors in Australia can request a tax receipt conveniently online through this form.

How much can you claim for donations?

• Money: Donations must be $2 AUD or more, and you can claim the full amount donated provided it does not result in a tax loss for your financial year.
• Property or Shares: The market value of these items can be claimed according to ATO rules on valuation and conditions. The eligibility criteria for these depend on the value, purchasing date, and type of property, so it’s best to discuss with a tax professional if you want to benefit from a donation of this kind.
• Gifts under the Heritage and Cultural programs: Items significant to the culture and heritage of Australia donated to eligible organisations may also be tax deductible under specific conditions.

How to make a claimable donation

Donating to Save the Children Australia helps improve lives and can provide significant tax benefits. By understanding how to claim donations on taxes, you can maximise the impact of your contributions and receive the tax advantages you deserve. To make a claimable donation, give now and contribute to our mission of improving children's lives.