How do I claim a tax deduction for donations to charity?

Okay, here's how you can claim a tax deduction for donations to charity, based on the legislation you provided.

In Plain English

If you donate to a charity that the government has approved as a "deductible gift recipient" (DGR), you can usually claim a tax deduction for that donation. The charity must be endorsed as a DGR, and this status is often noted on the Australian Business Register.

Here are some key points:

Detailed Explanation

To claim a tax deduction for a donation, you need to ensure the recipient is a deductible gift recipient.

Deductible Gift Recipients (DGRs)

  • The Income Tax Assessment Act 1997 outlines the rules for deductible gifts.
  • A "deductible gift recipient" is defined in section 30-227 of the Income Tax Assessment Act 1997 as an entity or government entity that is a fund, authority or institution described in item 1, 2, 4, 5 or 6 of the table in section 30-15 and is endorsed under Subdivision 30-BA as a deductible gift recipient, or mentioned by name in that table or in Subdivision 30-B.
  • The Australian Business Register must show that the entity is a DGR for a specified period if the DGR has an ABN.

Types of Deductible Gifts

  • You can deduct gifts of money or property Income Tax Assessment Act 1997.
  • For gifts of property, the amount you can deduct is generally the average of the GST inclusive market values specified in written valuations from approved valuers Income Tax Assessment Act 1997.
  • The Income Tax Assessment Act 1997 also specifies rules for reducing the amount you can deduct in certain situations (e.g., if the recipient doesn't receive immediate control of the property).

Receipt Requirements

  • A DGR must issue a receipt stating the name of the fund, authority, or institution, its ABN (if any), and the fact that the receipt is for a gift Income Tax Assessment Act 1997.

Community Charity Trusts and Corporations