If you gift a charity goat for Christmas, can you claim it on tax?
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.
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:
- It must be made to a Deductible Gift Recipient Organisation (DGR).
- It must be a gift or donation - meaning that you receive nothing material as a benefit for your gift or donation.
- 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.
If 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.