MY MONEY

If you gift a charity goat for Christmas, can you claim it on tax?

By

With the season of giving in full swing, you might find yourself looking for something a bit different to gift this year to your loved ones; a gift that not only makes them feel special but also makes a difference. A charitable donation gift.

It's not only a fantastic way to give back and share the spirit of giving for a worthy cause, but there's a good chance your charitable donation gift could help you boost your tax refund come tax time.

Let's break it down.

is a charity goat for christmas a tax deduction

What is a charitable donation gift?

The best way to figure out if your charitable donation gift is tax-deductible is to look at the traditional rules around what is a tax-deductible donation:

  1. It must be made to a Deductible Gift Recipient Organisation (DGR).
  2. It must be a gift or donation - meaning that you receive nothing material as a benefit for your gift or donation.
  3. The gift or donation must be of money or property (this can also include shares).

Most charities make it known up from if they are a DGR, but if you're struggling to find it - just simply go to the official ABN lookup site and search the charity and see if they have Deductible Gift Recipient status.

Let's look at some examples.

Charitable tax-deductible donation gift:

Oxfam is an important charity for your brother, so instead of a traditional gift, you make a donation to Oxfam and "Gift a Goat" on his behalf. As Oxfam is registered as a DGR, and you have received no material value for this donation, then this gift is tax-deductible.

Charitable non tax-deductible gift:

You decide to purchase your dad a book of raffle entries into a prize home giveaway run by Surf Life Saving Australia. As you receive something of material from this purchase (e.g. the raffle tickets), this cannot be claimed as a tax-deductible donation.

How to claim your charitable donation gift

Like any other tax deduction, you should keep records of all tax-deductible gifts and contributions by obtaining a receipt and storing the receipt in a safe place or snap a picture, so you can get the best refund come tax time.

IIf your charitable tax donation claim is less than $10 in total, then you do not require receipt proof.

When you make a donation the DGR will usually issue you with a receipt, although they are not required to. In these circumstances, you can still claim a deduction by using other records, such as bank statements.

And, if you are unsure of your charitable donations come tax time, it's best to seek help from a registered tax agent.

RELATED STORIES

TAGS

Liz Russell is senior tax manager at Etax.com.au, Australia's largest online tax return service. Liz has been with Etax since it launched in 1998 and brings more than 40 years' tax experience to the table. Her expertise lies within complex individual tax returns and ensuring all of her clients walk away with the best possible refund while staying within ATO rules and regulations.
Comments
Don McLeod
December 29, 2020 5.41pm

I think to get an deduction for donating goods to a charity they have to be valued at $5,000 or more?

Post a comment