Understanding Tax Deductions for Charitable Giving - Accounts NextGen

Understanding Tax Deductions for Charitable Giving

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If you also follow charitable giving, and amid this hard time, if you are also coming ahead to help people who are unable to deal with the current situation, you must understand Tax deductions. It’ll not just assist you in trimming down the excessive tax burden from your shoulder; indeed, it may encourage you to help needy people more.

Every year, around onethird of Australians give their significant contribution to Charities. If you are also one of them, you must pay attention to the following rules that are crucial to understanding for every person contributing to charitable giving.

Are you giving money to charity? Don’t forget your gift!

Do you want to give a significant boost to your tax refund? Then tax-deductible donations are the best way to make this possible. You can find plenty of charities around you who rely on donations as it supports them. Your little contribution can help lots of unfortunates.

But remember, if you want to connect with a charity or already you’re a part of any, then make sure the charity is registered by ‘ATO’ if you’re paying more than $2 as a donation to them. According to ATO, it must be “Deductible Recipient organization” otherwise; you can’t expect any tax deduction.

Most of the charities are apparent in such phases. But if you want to pay double attention, you can also ask them for “deductible gift recipient status,” which will clear your doubts.

Donation That Isn’t A Tax Deduction ATO marks the following scenarios before providing you with a tax deduction for charitable giving1. If you donate to an organization that isn’t registered, you can’t claim any tax deduction on your generous donation.

2. If in the exchange of your donation you receive something from the charitable organization, such as- a dinner attendance, chocolates, etc. then you aren’t eligible for a tax deduction.

3. It’s often a significant confusion among people that donating to churches will shed tax burden. Still, it’s not the whole truth. Like a registered charitable organization, the churches come under registered places for charity. However, leaving essential things unnoticed and requesting ATO for deduction may give rise to problems for you. Don’t claim it unless you’re entirely assured whether it’s eligible or ineligible.

Thanks for Watching Accounts NextGen – Tax Accountants Melbourne Level 19, 180 Lonsdale Street, Melbourne VIC, 3000 Australia (03) 9015-8540 Info@accountsnextgen.com.au https://www.accountsnextgen.com.au