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Preparing for tax time
It’s time to consider what expenses I can claim in preparation for the completion of my financial tax year. This is the month to think about donating to charities or not-for-profits so you can make an immediate claim when you lodge your tax return after June 30. But be warned: your expenses are only tax deductible if you donate them to a registered deductible gift recipient (DGR).
According to the Australian Taxation Office, a DGR is an organisation that is eligible to receive tax-deductible gifts. Not all charities are registered as a DGR and, therefore, your gift may not always be an allowable deduction. For example, crowd funding campaigns through sites like GoFundMe, although a popular way to raise money, are not always administered by organisations that have DGR status.
How do you know if an organisation is registered? Search the Australian Charities and Not-for-profit Commission website.
What you are looking for should appear like this:
As you can see, Avondale University is a registered charity and its reporting is up to date. So, any donations you make to Avondale will be tax deductible and claimable this financial year when you do your tax return next month.
So, why donate to a DGR?
- You can claim it as a tax deduction this financial year
- You can reduce your taxable income by the amount you donate (and the tax you would otherwise pay on it)
- To support a registered charity
- To feel good about supporting an organisation that supports others.
Photograph: Liza Summer from Pexels.
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Help our brightest minds be the best they can be. Donate by June 30 to Create Great Spaces for learning on our Lake Macquarie campus. Donations above $2 give you a tax deduction in Australia.
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