What Are Charitable Contributions?
A deductible charitable contribution is a donation or gift made to a qualified charitable organisation that you are then able to claim as a tax deduction. There are many people in need in the world that charities help, but they rely on donations to do this. Save the Children helps millions of children and their families in over 100 countries and we wouldn't be able to do this without the generous donations we receive. 80.4% of donations to our charity go directly to program expenditure so you know your donation is making a difference to the lives of children and families in need.
What Are The Benefits Of Giving To Charity?
When you donate to a charity you are helping to make a positive difference to the lives of children and families in need. In Australia, you can claim donations of over $2 AUD on your taxes.
When it comes to donating to charity, there are also many other benefits if you’re a business. Customers are more likely to be satisfied with a company that donates to charity. Additionally, companies can see an increase in brand loyalty as a result of their donations. Many businesses also partner with us so we can work together to make positive change for children. Businesses that align with a worthwhile charity can also create a more positive and fulfilling workplace for employees too.
What Types Of Organisations Can You Claim Donations For Taxes?
When claiming charity donations on your tax return, you need to ensure the charity is a Deductible Gift Recipient (DGR) - an organisation or fund that is registered to receive tax-deductible gifts or donations. It is important to note that not all charities are DGRs, but Save The Children is a registered DGR. Therefore donations to us are tax deductible and you help children in need at the same time.
When donating to a DGR, ensure you check what types of gifts they can receive that you're able to claim. There can be additional conditions for different types of donations for some DGRs.
What Are The Requirements For Claiming Charity Donations On Tax Return?
When claiming donations on taxes, you must meet the following requirements:
As above, the charity you donate to must be a DGR.
It must truly be a gift or donation (i.e. you don't receive any material benefit or advantage in return for your charitable donation - if you receive a material benefit in return for your gift or donation, this is considered a ‘contribution’ and extra conditions apply for this in terms of claiming on your taxes).
The donation must be in the form of a valid currency (money), property or shares, or a gift.
It must comply with any relevant gift conditions.
You will need to have proof of your donation such as a receipt and you can only claim the deduction for the income year you donated. However, you can spread the deduction over a period of up to 5 years but certain conditions apply when doing this. If you're not sure whether or not your donation is tax deductible, it's always best to seek professional advice. You can also visit the ATO site for more information on claiming charitable donations on tax.
What Donations Can You Claim On Taxes?
What donations can you claim on taxes in Australia are as follows:
Money – the donation must be $2 or more and you can claim the full amount that you donate.
Property or shares – the type and value of the property (there are gift types, requirements and valuation rules around these).
Gifts under the Heritage and Cultural programs.
Noting that the amount you can claim for your donation will depend on the type of gift or what you have donated.
Make A Donation Today
To make a tax-deductible donation you can make a single donation or become a monthly giver today whilst helping to make a difference to the lives of children here in Australia and around the world.