You can claim a deduction for a gift or donation you make to an organisation which is A Deductible Gift Recipient (DGR).

What is a DGR?

A deductible gift recipient (DGR) is an organisation or fund that can receive tax deductible gifts or donations.

Not all charities are DGRs. Many of these crowdfunding websites are not run by DGRs, so donations to them are not deductible. You can check whether your donation was made to an endorsed DGR on the Australian Business Register website.

Deductible gift recipient lookup: https://abr.business.gov.au/Tools/DgrListing

• Any material benefit received like a raffle ticket or sponsored lunch or dinner is not deductible.
• it must be money or can be shares issued.
• it must comply with any relevant gift conditions – for some DGRs, the income tax law adds extra conditions affecting the types of deductible gifts they can receive.

You must have a receipt. If you receive a material benefit in return for your gift or donation to a DGR – for example, something that has a monetary value – it is considered a contribution and extra conditions apply.

Political party and independent candidate donations

In some circumstances, you can claim a deduction for gifts and donations of $2 or more to registered political parties or independent candidates.

This includes paying a membership subscription to a registered political party.

You must have made the gift or donation as an individual (not in the course of carrying on a business) and it can’t be a testamentary donation (a donation made in a will).

If the gift is property, the property must have been purchased within 12 months of making the donation.

The most you can claim in an income year is:

• $1,500 for contributions and gifts to political parties
• $1,500 for contributions and gifts to independent candidates and members.

To claim a deduction, you must have a written record of your donation.

Gifts and donations you can’t claim

You can’t claim a deduction for gifts or donations made to any person or organisation without a current DGR status of endorsed or listed, or where the donation provides you with a personal benefit such as:

• social media or crowdfunding platforms
• religious organisations
• raffle or art union tickets – for example, an RSL Art Union prize home
• items that have an advertised price, such as chocolates, mugs, keyrings, hats or toys
• the cost of attending fundraising dinners – you may be eligible to claim a deduction as a contribution if the cost of the event was more than the minor benefit applied as part of the event
• club membership fees
• payments to school building funds made in return for a benefit or advantage – for example, as an alternative to an increase in school fees or placement on a waiting list
• payments where you have an understanding with the recipient that the payments will be used to provide a benefit to you
• gifts to family and friends, regardless of the reason
• donations made under a salary sacrifice arrangement
• donations made under a will.

Information from ATO QC72185