On Wed 14.7.2021, issued a release reminding taxpayers to make sure they have a record of the donations they are claiming this tax time. There are 4 reasons a donation might not be deductible, but according to the ATO, nearly two thirds of the deduction adjusted last year, were because the taxpayer could not prove they had made the donation.

See below for further detail.

[Tax Month – July 2021]


Assistant Commissioner Tim Loh said that more than $3.9 billion was claimed as deductions as gifts and donations to charities and not-for-profits in 2018–19, but not all gifts and donations are tax deductible. Mr Loh said that there are 4 reasons a donation or gift may not be tax deductible:

  • The organisation receiving the donation or gift is not endorsed by the ATO as a deductible gift recipient (DGR) – not all charities and not-for-profits (NFPs) are DGRs, including crowdfunding campaigns that raise money for charitable causes and individuals in need. Donations to foreign charities and not-for-profits that are not registered as Australian DGRs are also not deductible;
  • The donation made includes an expectation to receive a monetary or personal benefit or advantage in return – money spent buying a chocolate (fundraising chocolate), a raffle ticket or an item from an Op Shop is not tax deductible;
  • No record or receipts are kept; and
  • Testamentary gifts and workplace giving – testamentary gifts are generally not tax deductible and workplace giving would have already reduced the amount of tax paid in each pay period.

[ATO website – Donations page; LTN 133,14/7/21]

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