Did you know your charitable donation is tax deductible?
Charitable Donations – Australia
In Australia, any charitable donation over $2 is tax deductible providing the charity you are donating to is recognised as a “Deductible Gift Recipient” (DGR). Beyond The Orphanage is a registered charity with DGR status
The Australian Tax Office (ATO) has a search feature on its website where you can find out if the non-profit you want to make a charitable donation to is a DGR. To find out whether your donation was made to an endorsed DGR check here.
This site also details what charitable donations are claimable. Click here for further details.
The content below is from the ATO. It provides general information on what is and is not deductible:
|Donations you can claim||Donations you cannot claim|
|Donations must be made to a DGR||Raffle or art union tickets|
|The donation must truly be a gift. A gift is voluntary transfer of money or property where you receive no material benefit or advantage||Items such as chocolates and pens|
|The donation must be money or property, which includes financial assets such as shares||Cost of attending fundraising dinners, even if the cost exceeds the value of the dinner|
|The donation must comply with any relevant gift conditions specified by the ATO||Membership fees|
|Payments to school building funds made, for example, as an alternative to an increase in school fees|
|Payments where you have an understanding with the recipient that the payments will be used to provide a benefit to you|
|Donations to crowdfunding platforms|
Source: Australian Taxation Office
Some handy tips for claiming charitable donations – Australia:
- Keep your donation receipts.
- Make sure the donation receipt includes the date, amount, type of gift (cash, shares, property etc), and the name of the organisation the donation was made to.
- Receipts need to state that you did not receive anything in exchange for your donation.
- In general, donations should be claimed in the tax return for the financial year in which they were made.
Charitable Donations – United States
In the United States charities need to be 501(c)(3) registered. Beyond The Orphanage is a 501(c) (3) charity.
Any charitable donation is tax deductible but there are certain reporting guidelines you need to adhere to.
Visit the Internal Revenue Service (IRS) for comprehensive details on what is considered a charitable donation and how you can claim your donations.
Remember IRS rules can change.
This table from the IRS provides general information on what is and is not deductible:
|Deductible As Charitable Contributions||Not Deductible As Charitable Contributions|
|Money or property you give to:||Money or property you give to:|
|Churches, synagogues, temples, mosques, and other religious organizations||Civic leagues, social and sports clubs, labor unions, and chambers of commerce|
|Federal, state, and local governments, if your contribution is solely for public purposes (for example, a gift to reduce the public debt or maintain a public park)||Foreign organizations (except certain Canadian, Israeli, and Mexican charities)|
|Nonprofit schools and hospitals||Groups that are run for personal profit|
|The Salvation Army, American Red Cross, CARE, Goodwill Industries, United Way, Boy Scouts of America, Girl Scouts of America, Boys and Girls Clubs of America, etc.||Groups whose purpose is to lobby for law changes|
|War veterans’ groups||Homeowners’ associations|
|Expenses paid for a student living with you, sponsored by a qualified organization||Individuals|
|Out-of-pocket expenses when you serve a qualified organization as a volunteer||Political groups or candidates for public office|
|Cost of raffle, bingo, or lottery tickets|
|Dues, fees, or bills paid to country clubs, lodges, fraternal orders, or similar groups|
|Value of your time or services|
|Value of blood given to a blood bank|
Some handy tips for claiming charitable donations – United States:
- Keep your donation receipts
- Make sure the donation receipt includes the date, amount, type of gift (cash, in-kind etc), and the name of the organisation the donation was made to.
- Receipts need to state that you did not receive anything in exchange for your donation
- Claim charitable donations made in a single calendar year – e.g., list all the donations you made in 2018
Quick links for more information on charitable donations:
ATO Guidelines for Gifts and Donations
IRS Charitable Contributions
Disclaimer: Please note the content provided on this page is for informational purposes only. Please consult your tax agent or the tax authority in your country before making a claim.