The Australian Taxation Office (ATO) treats Not For Profits a little differently to other organisations. There are some tax concessions available for income you receive through fundraising and people who contribute gifts or other types of financial contribution can claim deductions. The Non-profit section of the ATO website provides an overview.
- see the Non-profit section of the ATO website.
GST and the funds our organisation raises
GST may apply to funds raised by your Not For Profit, although some concessions apply to charitable and community organisations and activities. The ATO website provides details of where GST is applicable.
- see the Gifts and fundraising section of the ATO website.
Does GST apply to donations we receive?
Gifts and donations do not attract GST. The gift must be made voluntarily and must not be in exchange for any material benefit.
Do we need to pay GST on tickets to fundraising events?
If you’re selling tickets to a fundraising event you may need to pay GST on the tickets you sell. The ATO publication GST and fundraising dinners or similar functions has details of what your organisation’s obligations are.
- see the GST and fundraising dinners or similar functions page on the ATO website.
Receiving tax deductible gifts
To be able to offer income tax deductions to your donors for their gifts and donations, your Not For Profit first needs to be endorsed by the ATO as a Deductible Gift Recipient.
- see the Deductible gift recipient (DGR) endorsement page on the ATO website for more information.
Some organisations have a special intermediary tax status which allows them to use their deductible gift recipient status on behalf of others who do not have DGR status.
Claiming tax deductions for contributions
If you are raising funds with an event that gives the contributor something in return for their contribution, they may only be able to claim part of their contribution as a tax deduction.
For example you might be selling tickets to a show or a ball, where the contributor can attend the event in return for a contribution that is actually more valuable than the ticket.
The ATO website has detailed information about how to calculate deductible amounts for contributions.
- see the Conditions for a tax-deductible contribution page on the ATO website.