Private ruling: Donation
Published: March 2012
Ruling period: Year ending 30 June 2012 | Year ending 30 June 2013 | Year ending 30 June 2014 | Year ending 30 June 2015
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you entitled to a deduction for an amount you donate to a charity where that amount has been given to you by an acquaintance on the condition that it must be donated to the charity? | A1: No.


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 30-15. | Income Tax Assessment Act 1997 Section 30-17.

Reasons for decision: Summary: Division 30 of the Income Tax Assessment Act 1997 (ITAA 1997) deals with the deductibility of gifts or contributions. Section 30-15 of the ITAA 1997 provides that a gift to any fund or institution 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. Under section 30-17 of the ITAA 1997 the recipient of the gift must be endorsed by the Commissioner or be specifically listed by name in the ITAA 1997 as a deductible gift recipient (DGR). In your case you will be provided with an amount by an acquaintance on the condition that it must be donated to a particular DGR. In relation to the donation of this amount, it is considered that you will be acting as agent for your acquaintance rather than genuinely gifting your own money. Therefore, you will not be entitled to a deduction for this amount.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Relevant facts: An acquaintance is looking to donate a substantial amount to a charity which is a deductible gift recipient. | You wish to donate an amount to this charity as well. | The acquaintance cannot claim a tax deduction and has no need for the deduction but is willing to gift you the money on the proviso that the money be donated to the charity. | You wish to claim a full deduction for the total amount donated to the charity.