Make Charity Donations This End Of Financial Year
We are fast approaching the end of the financial year, and this means it’s time to think about your EOFY charity donations. If you don’t already make a donation, then it could be time for you to start considering it.
The work that charities do in Australia is essential for our society. Never more so than in 2020. Within the last 12 months, Australia has been hit by some of the worst bushfires we’ve ever seen, devastating our communities and wildlife. With the country still working on the aftermath, the world was shaken by the current COVID-19 pandemic, a virus which is not only affecting the health of our country but is also causing substantial economic strain across the world. While we battle all this, the world has also been facing a worrying climate crisis. The effects of these disasters are profound and ongoing.
Many charities provided vital services and assistance during the recent Australian bushfires. Their work covered multiple areas, including on-the-ground disaster services, saving wildlife, food kitchens, environmental repair, welfare and more.
Just as Australia was beginning to settle from the natural disaster, we were hit by a global pandemic. COVID-19 has had a massive impact on our country, and the rest of the world. The services provided by charities during this time have been vital. They have supported the vulnerable who have been isolated in their homes, and assisted families that are facing a financial crisis. There is support for the homeless during the pandemic, charities are supplying food and essential supplies to communities in need. Research into vaccines and support for all medical workers is also supported by charity donations.
All across Australia, incredible charities are making our country and the world a better place.
Charity organisations are also a significant employer. In 2019, the Australians Charity Report showed that 1.3 million people were employed in this sector. Services are provided 352 days of the year across multiple sectors including health and medical, research, welfare and education. Some work with disabilities and families that are caring for a vulnerable person. Some charities support refugees, mental health and the environment. It is a vast not-for-profit industry that relies on the kindness of others to protect our country.
While the number of Australians making charitable donations at EOFY is changing, the Council for the Australian Federation published their retrospective review for Australian, which showed that 18-24 year olds are more than twice as likely as average to give through a workplace giving program. The report also found that tax incentives are more popular among those on higher incomes. 25% of those with an annual family income of $70,000-$149,999 will donate at the end of financial year, this rises to 39% with a family income of $150,000. Only 8% of those with less than a $50,000 income use the incentive.
The overall number of taxpayers claiming tax-deductible donations fell by 7.2% between 2016 and 2019. This is because a gift made at the end of financial year can reduce your taxable income. If you are on the brink of your tax bracket, this can help lower your tax commitments and will benefit your community too.
Your donation may seem small, but it makes a massive difference. There is no tax for the charity to pay, so they get every dollar, ensuring that your money goes even further to help the community. Your employer can choose to match your donation too, providing even more support. If you speak to your employer you could take advantage of workplace giving, you won’t need to do the paperwork or file these tax deductions with the ATO after June 30.
Australia has over 600,000 charities. However, not all have deductible gift recipient status. Using the mycause platform, you can utilise a feature that allows you to support multiple charities with a single donation. This ensures your donation benefits every organisation that matters to you. mycause disburses all the funds to the charities and provides you with one simple tax receipt.
There has never been a more pivotal time to give to charity. Support from the public is vital to ensure so many in our community are kept safe. It’s at times like this when Australians need to come together and help each other in any way they can. With the EOFY charity tax donation scheme, you can help keep your taxable income low while knowing you are really improving the lives of others.
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