If you are unsure about whether charity donations are tax-deductible, let us answer all your questions about the potential tax deductions that come with donating to a good cause.
You can make a lasting impact with your tax-deductible donations and support the fight against cardiovascular disease by donating to the Heart Research Institute (HRI).
How do you know if you're donating to an eligible charity or non-profit organisation?
Donation are only tax-deductible if they are made to an eligible charity or non-profit. These are organisations that have deductible gift recipient (DGR) status, like HRI.
All eligible charities and non-profits are entered in the Australian Charities and Not-for-profits Commission (ACNC) charity register. You can visit the ACNC website to look up the organisation you are considering donating to. The listing will refer you to the organisation’s ABN records, which will indicate its DGR status.
Some organisations, including HRI, display a DGR registered badge on their websites.
What types of donations are tax-deductible?
The types of donations that are tax-deductible are those with a value of $2 or more made to an organisation that is registered as a DGR, like HRI. The donation can be in the form of a:
- One-off donation
- Regular monthly donation
- Donation supporting a specific appeal
- Corporate sponsorship
- Donation in lieu of a gift.
To be eligible for a tax deduction, you cannot receive benefits in exchange for your donation, eg, making a donation for admission to an event or to receive raffle tickets.
Making a donation means that you can deduct the amount of your donation from your taxable income for that financial year, all while making a lasting impact. Your donation reduces your taxable income, so you pay less tax on your income and may receive money back after you lodge your tax return.
Business charity donations
Businesses can make charity donations and claim a tax deduction on that donation. For a donation from a business to be eligible for a tax deduction, the contribution must be $2 or more, and it must be made to a DGR organisation like HRI. It can be a one-off donation or a recurring one, but the business cannot receive benefits in exchange.
A business charity donation is a great way for a business to increase its tax return, while also practicing corporate social responsibility.
Visit the Australian Taxation Office website for more information.