Most taxpayers are aware that donations of $2 or more are deductible, and there is flexibility in the rules around donating to emergency relief bodies in that no receipt is required if giving less than $10 (so called “bucket” donations).

For taxpayers to be able to claim a tax deduction for a donation or gift to an organisation, the receiving entity must be endorsed as a “deductible gift recipient” (DGR), which can be checked on the ABN Look-up web page.

While this is the main condition imposed on claiming a deduction for donations, it is not the only factor the ATO considers. Also relevant is the nature of the donation (whether money or property, which includes financial assets such as shares), and t at it is a voluntary transfer of assets from donor to recipient, performed as an act of “disinterested generosity”. Readmore