Charitable Donations | Your Beverly Hills Tax Accountant

Giving to charity is a moral imperative for those of us who have the ability. It offers us the chance to directly offer our aid to those causes that we believe in, and which speak to us, and our system of taxation here in Australia encourages this practice. Charitable donations are tax deductible at the end of the financial year.

While many areas of the not-for-profit world provide a means of earning tax deductions, the devil is in the details. Not all donations are tax deductible, and the rules are interpreted very strictly. As your tax accountant for Beverly Hills and Sydney, we encourage you to toe the line.

What sort of donation is tax deductible?

For a donation to be tax deductible, it must be cash or property, and must constitute an honest donation – you cannot receive anything in return for the donation. This stipulation isn’t only limited to cash or gifts – it extends to future considerations, as well, such as promises of future considerations.

This includes such innocuous items as food, drink, raffle tickets, or badges, as these are regarded as transactional. Crowdfunding was recently struck from the list, as well. However, so-called ‘tokens’ are not covered by these rules. For example, you can receive something like a lapel badge, a button, or a sticker.

Who can receive it?

Charities must be registered as a Deductible Gift Recipient by the ATO to qualify as charitable causes. Check their website to confirm, or you can look them up by their ABN number on the ATO website. Some of Australia’s largest recipients include the Australian Cancer Council, the Australian Red Cross, and World Vision.

Charitable donations can serve as an excellent method of putting your money behind causes that speak to you, and can serve as a great method of maximising both your tax return, and the use of your hard-earned money.

At TLK Partners, we can direct your cash flows in the optimum direction for your financial goals. As tax accountants for Beverly Hills and throughout Sydney, you can put your faith in our expertise. Contact us today.

This information is of a general nature only and does not take into account your particular objectives, financial situation or needs. Accordingly the information should not be used, relied upon or treated as a substitute for specific financial advice. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither TLK Wealth Pty Ltd nor its employees, associated entities or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information. TLK Wealth Pty Ltd is authorised representative #1007998 of MyPlanner Professional Services Pty Ltd AFSL #425542.