Donations to charities with Deductible Gift Recipient (DGR) status are tax deductible in Australia. The donation must be $2 or more, genuinely given as a gift (not in exchange for goods or services), and the organisation must be registered with the ATO as a DGR. Not every charity or not-for-profit qualifies.
The Four Requirements for a Deductible Donation
- The gift is $2 or more — no maximum, but the minimum is $2
- The organisation has DGR status — registered with the ATO as a Deductible Gift Recipient
- It is a genuine gift — no material benefit received in return (see below)
- You have a receipt — for donations of $2 or more
How to Check if a Charity is a DGR
Not every charity or community organisation is a DGR. Check via the ATO’s ABN Lookup tool at abr.business.gov.au:
- Search the organisation’s ABN or name
- Look for “Deductible Gift Recipient” status in the charity details
Alternatively, the Australian Charities and Not-for-profits Commission (ACNC) register at acnc.gov.au lists registered charities and their DGR status.
The “No Material Benefit” Rule
A donation must be given without receiving something of comparable value in return. Common grey areas:
| Situation | Deductible? |
|---|---|
| Cash donation to a DGR charity | Yes |
| Buying a raffle ticket from a charity | No — you receive the chance to win a prize |
| Buying a charity merchandise item (badge, pen) | No — you receive an item |
| Purchasing at a charity gala dinner with a ticket price | Only the amount above the fair market value of the dinner |
| Charity merchandise “with” a donation (separate receipt for donation component) | Donation portion only, if separately receipt |
| Giving a heritage item to a DGR institution | May be deductible under separate rules for property gifts |
Collecting Receipts
Keep receipts for every donation. Online donations from verified DGRs typically issue automatic email receipts. If you give cash, ask for a receipt. Without a receipt, you cannot claim the deduction — the ATO requires written evidence for all donation claims (unlike the $10 small expense rule that applies to some other deductions).
How to Claim in myTax
In myTax, claim donations under Gifts and Donations in the deductions section. Enter the total of all qualifying donations for the year. If you made many small donations, add them together.
What Is NOT Deductible
- Donations to organisations without DGR status (some local charities, community groups, religious organisations that do not hold DGR status)
- Giving money to an individual, even in genuine need
- Crowdfunding contributions for personal causes (GoFundMe type) — unless specifically channelled through a DGR organisation
- Membership fees to charities (these are consideration for membership benefits, not a gift)
- Donated time or voluntary work — only cash or property gifts qualify
- Donations to overseas charities that are not Australian DGRs
Frequently Asked Questions
Can I claim donations made through workplace giving? Yes. Workplace giving deductions are typically applied to your pay before tax, reducing your taxable income immediately. They will appear on your income statement. If not already deducted through payroll, you can claim them as a deduction on your return.
I gave to a collection at a church or mosque. Can I claim it? Only if the specific organisation is a registered DGR. Many religious organisations are not DGRs (or have DGR status only for specific funds). Check the ABN lookup before claiming.
Are political party donations deductible? Political party contributions are not deductible as standard charitable donations. There is a separate ATO provision that allows limited deductions for contributions to registered political parties — the rules and thresholds are specific, and a tax agent should be consulted.
Can I carry forward unused donation deductions? No. Donation deductions must be claimed in the year the gift was made. There is no carry-forward provision for unused donation deductions (unlike investment losses).
This article provides general tax information. For advice tailored to your situation, speak with a registered tax agent. Find one through the Tax Practitioners Board register.