Private ruling: Deductibility of a gift
Published: January 2013
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you entitled to a deduction for the value of a prize gifted to an organisation? | A1: No.

Relevant facts and circumstances: You and your spouse won a prize. The prize was the lucky door prize held at a fundraising event. You and your spouse jointly contributed the prize to an organisation. The organisation is not a deductible gift recipient (DGR). The organisation is a charitable trust.

Relevant legislative provisions: Income Tax Assessment Act 1997 Division 30 | Income Tax Assessment Act 1997 section 30-227

Reasons for decision: Summary: A donation you make may be deductible provided the recipient is a deductible gift recipient as acknowledged by the Australian Taxation Office (ATO) under section 30-227 of the Income Tax Assessment Act 1997 (ITAA 1997). Only certain organisations are entitled to receive income tax deductible gifts. They are called deductible gift recipients (DGRs). DGRs are: · endorsed by the ATO, or · listed by name in the tax law. The organisation that you donated the prize to is not endorsed by the ATO as a DGR, nor is it listed by name as a DGR in the tax law. Therefore, as the organisation is not a DGR, you and your spouse are not entitled to claim a deduction for the value of the gifted vehicle.

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