Claim a tax deduction for donations

We all feel good about giving to charity but what makes it even better is that, in many cases, the tax office will allow you to claim a tax deduction for your donations. Basically, provided you're giving to an organisation registered as a deductible gift recipient you should be able to claim a deduction.

Most major charities are registered but if in doubt you can check at ABN lookup website.

If you're giving cash, you can claim a deduction for gifts of $2 or more. For gifts of property, there are different rules, depending on the type of property and its value.

You can claim the deduction in the tax return for the income year in which the gift is made. You'll need a receipt to substantiate the deduction. If you used the internet or phone to make a donation over $2, your web receipt or credit card statement can be used. If you donated through a third party, such as a bank or retail outlet, the receipt is sufficient. If you contributed through workplace giving, your payment summary shows the amount you donated.

You can't claim a deduction for anything that provides you with a personal benefit, such as raffle tickets (though you can claim a deduction if you've spent more than $150 for a ticket to a fundraising event such as a fete, gala or dinner).

Mark Chapman is director of tax communications for H&R Block.

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