If you’re planning on claiming a tax deduction for a donation then it’s important to understand the rules.

To be able to claim a deduction the gift must be made to a deductible gift recipient or DGR for short. But a word of warning – not all charities are DGRs.

The ATO offers the example of crowdfunding campaigns and warns that many of these are not run by DGRs, so donations to them are not deductible.

If you are giving money, then the donation has to be $2 or more for you to be able to claim a deduction. It’s also vital to keep records such as a receipt.

Here’s something you may not know .. if you donate $2 or more, to bucket collections by DGRs you can claim a total tax deduction of up to $10 for those donations without a receipt.

Effie Zahos

Effie Zahos has been providing expert advice on personal finance and consumer issues for over two decades, and her insights are sought after by many Australians.

The author of several best-selling books on personal finance, including “A Real Girl’s Guide to Money: From Converse to Louboutins,” “Getting Rich, Staying Rich: A Practical Guide to Investing in Shares,” and “The Great $20 Adventure,” her expertise and experience in the area of finance are unparalleled, and she is a passionate advocate for financial literacy in Australia.

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These Tax Tips with Effie Zahos are for general information only, not tax advice.
Before making any decisions you should speak to a registered tax adviser.