Guide to donating to charities

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08.Claiming tax deductions

You can claim back some of your eligible donations on your tax return if your charity is registered as a Deductible Gift Recipient (DGR). This doesn't affect the money the charity receives, it just means you claim what you're entitled to.

For example, if you donate $400 to an eligible charity (DGR) this year, you could deduct $400 from your taxable income on your tax return. If you pay income tax at 30%, the deduction would be worth $120.

Many donors don't make a claim. Australian Taxation Office figures show that 4.3 million claims for gifts and donations were made in 2004–05, but many more donations are likely to have been eligible for a deduction. There are conditions about what you can claim. Donations must be over $2 and you need a receipt. Some gifts to DGRs — such as tickets to a charity dinner or ball — aren't eligible.

You can check if an organisation is a DGR via the ABN lookup website at abr.business.gov.au. There’s also information about the deductibility of donations at the Tax Office website.
 

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