Private ruling: Donations
Published: October 2014
Ruling period: Year ended 30 June 2015
Date scheme commenced: 1 July 2014

Ruling: Q1: Are you entitled to a deduction for a donation made directly to an entity which is not a Deductible Gift Recipient (DGR)? | A1: No.


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 30-15

Reasons for decision: Summary: Division 30 of the Income Tax Assessment Act 1997 (ITAA 1997) outlines the guidelines for the deductibility of gifts and donations. Section 30-15 of the ITAA 1997 provides that a gift to any funds and institutions listed is allowable as a deduction in the income year in which the gift is made, provided the gift meets the various conditions of relevant subsections. To be able to claim a tax deduction for a gift, it must: 1) be made to a DGR 2) be a gift of money or property that is covered by a gift type, and 3) be truly a gift. In your case, you intend donating a funds to the organisation which is not a DGR. Therefore, as the donation will not be made to a DGR, you are not entitled to a deduction.

Relevant facts: You intend making donations to the overseas organisation. | The organisation is not a registered DGR.