How to make a tax deductible donation on GoFundMe
The end financial year (EOFY) might throw up images of never ending expenses, hunting for that OfficeWorks receipt, and headache-inducing spreadsheets.
We’re here to shine a light on the up side of tax time – generosity, impact and sending valuable funds to causes you care about through a tax deductible donation. By choosing a certified charity to donate to, or launching your own fundraiser, you can have huge impact on those in need.
How do I know if my contribution on GoFundMe is considered a tax deductible donation?
If you donate to a registered charity fundraiser on GoFundMe, then your donations are likely to be eligible for charity tax deduction. Here’s how to know whether you’re donating to a fundraiser for a certified charity. You may want to donate to a personal or individual cause (fundraising for personal projects, in memory or life milestone, for example) that is not linked to a registered charity. Though traditionally not considered a tax deductible donation, it is worth checking with your tax accountant whether your donation is eligible.
Will I get a receipt for my donation?
Charity donations on GoFundMe are made to PayPal Giving Fund, a Public Ancillary Fund and charity registered with the Australian Charities and Not-for-profits Commission and deductible gift recipient. PayPal Giving Fund is the charity of record and will provide the donation receipt for your gift directly to your email after the donation has been made.
What are the tax benefits of giving to charity?
The tax benefits of donating to charity are simple: Deducting charitable donations from your taxes may reduce the amount of money you’ll owe to the Australian Tax Office come June 30th, depending on your individual tax situation. Many businesses and high earners often take advantage of these tax exemptions for limits and donate huge chunks of money to nonprofits. But even if you’re not donating billions of dollars like Bill Gates, certain charitable contributions might still help reduce the your tax burden.
Explore Certified Charity Fundraisers on GoFundMe to donate to
In the age of crowdfunding, it has never been easier to support your favourite charity. Technology has changed the way people all over the world help others. Lending a digital hand to those in need is now effortless, and finding best charities to donate to takes no time at all. To help, we have shared some recent charity fundraisers that need your help below or you can search the Australian charity database here.
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Other important tax tips
If you want to make the most of your charitable contributions, you’ll want to keep these other tax rules in mind.
Time your donation correctly
Donations are only deductible in the year that they’re made. This means that you must make donations by June 30th to be taken into account for the twelve months prior.
Always ask for receipts
When making non-cash donations, it’s important to get a receipt as proof of your contribution. The receipt should state the amount of the donation, the date, and the name of the organisation you donated to.
Consider working with a tax professional
Tax laws can change on a yearly basis and everyone’s situation is different, so we working with a tax professional is recommended before following any of the advice outlined in this guide. A tax professional will ensure you’re adhering to tax laws, and they’ll be able to help you maximise charity tax deductions whilst adhering to the Australian Tax Office’s rules and regulations.
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