It’s Christmas Eve, and I find myself feeling grateful for all that I have, however over the Christmas period it’s also time to think about those less fortunate than ourselves. Giving to charity this Christmas is a great way to give to those less fortunate plus you can also receive some extra tax perks.
Charitable donations are tax deductible donations which only adds to the incentive to be generous this holiday season.
Here are some tips for maximising your tax breaks on charitable donations:
The charity must be registered
Make sure the charity you donate to has been endorsed by the ATO as a deductible gift recipient (DGR) organisation. It is important to note that not all charities are endorsed as a DGR.
The gift must truly be a gift
The donation must be a gift, not an exchange for something material. This means if you have received items in return that provide you with some personal benefit, such as raffle tickets, you cannot claim the deduction as a gift or donation.
Check relevant gift conditions
The ATO considers a gift as a voluntary transfer of money or property, including financial assets such as shares. For some DGRs, the income tax law adds extra conditions affecting the types of tax deductible donations gifts they can receive. If you are considering a sizeable donation, discuss the tax implications with your accountant.
Have a wonderful Christmas and a happy and healthy New Year.
The team at Leenane Templeton.