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Tax-deductible donations

Every time you donate to charity you perform a special act of kindness and compassion that can make a real difference to someone in their time of need. The Australian government supports charitable giving by offering a tax deduction for some types of donations. These donations can reduce the amount of income tax you have to pay when you file your tax return.

How to reduce your income tax with donations

You can claim a tax deduction for donations of $2 or more, as long as these donations are made to an organisation that has been endorsed by the Australian Taxation Office (ATO) as a deductible gift recipient (DGR). The Smith Family, is a registered charity, sub-type public benevolent institution, and has DGR status so your donation will be tax deductible.
Sophie sitting with a book
Only certain donations qualify for a tax deduction. You cannot claim a deduction if you receive a personal benefit for your donation (for example if you buy a raffle ticket, buy merchandise or pay to attend a gala event). The ATO provides more information about gifts and donations.

4 STEPS TO MAKE TAX DEDUCTIBLE DONATIONS

Illustration of 4 step process to make a tax deductible donation

Step 1 – Select a  charity that has DGR status

Check for DGR status and find out what impact your gift will have.

You can check this by using the Australian Business Register.

Step 2  – Make your donation

It’s often easiest to donate online or by phone.

Step 3 – Keep your receipt

You should keep all records of tax deductible gifts.

Step 4 – Claim your tax deduction

Claim your donation when you file your next tax return from 1 July.

Gift to donations

As Australia’s largest national education-oriented charity, our learning and mentoring programs help children in need to fit in at school, keep up with their peers, and gain the skills and confidence they need to thrive in the classroom and beyond.
Find out more

FAQs

You can check this by using https://abr.business.gov.au/

You can file your tax return for the financial year ending 30 June after 1 July, when the new financial year begins. You can fill out a paper form or file your return online via the ATO website. Include your donation to The Smith Family in section D9 (Gifts and Donations) – and keep the receipt we send you for your donation with your records, as evidence to support your claim.

The value of your tax deduction will depend on the amount you earn and the rate of tax you pay. You can find more information on the ATO website or check with your accountant or tax agent if you have one.

Usually, you can claim the full amount of a tax deduction over $2 that you make to a DGR for the financial year in which the donation is made. Your deduction for a gift is not allowed to create a tax loss. In these circumstances, you may need to spread your claim over two or more years. You should seek independent advice if you have questions about how much you can claim in a financial year.

No. The Smith Family will receive the full amount of your gift to help young Australians in need to succeed at school, so they can create better futures for themselves.

HOW YOUR DONATION WILL HELP A STUDENT

Talia sitting on floor in living room

student2student

Your donation can help a child catch up with her reading skills through our peer-to-peer reading program student2student.

97% of children4 we’ve worked with in this way have found their reading has improved, so this would be a wonderful starting point for Anna.

Lucy sitting with teacher in classroom

Learning Clubs

Once she is more confident with her reading, Anna can also attend one of our out-of-school Learning Clubs,so she can get help with her homework and ongoing support from caring volunteer tutors.

88% of students said going to our Learning Club makes them try harder at school.


Wal and Tri working on the computer

iTrack Mentoring Program

iTrack is a mentoring program matching a student in Years 9 to 11 to a trained mentor, who gives them guidance about study options and career paths.

79% of students who participated in iTrack said they are more positive about their future career and study options.

All donations of $2 and over are tax deductable
This article contains general information only. It does not take into account your personal or financial circumstances. You should obtain independent professional advice in relation to your particular circumstances and issues if you need clarification of any matter.