Making Your Tax Count: Charitable Giving at EOFY

The words “tax time” might not inspire happy thoughts, since many Australians associate this time of year with long and tiresome hours of paperwork. However end of financial year is one of the most important times of the year for charity donation appeals.

Charity giving at End Of Financial Year is not only a chance to make a difference; it’s also an excellent way to reduce your tax burden for the year through either personal or corporate donations.

How do tax deductible contributions work?

You may claim a tax deduction on a gift. When you make a gift, you do not receive a material benefit in return for your payment. 

For example:

Tim is a full time worker on a salary and his tax is deducted from his salary on the PAYG (pay-as-you-go) installment scheme.

• His taxable income is $50,000 (before tax)

• He donates $1,000 to charity throughout the year

• This donation is deducted off his taxable income, so he will now be taxed for an income of $49,000

To learn more about charity donations and tax deuctions visit the ATO website

Multiple Charities. One Tax Receipt.

Whether you’re a one-time donor or a philanthropist, you’re more than likely to donate because you want to help a cause that is close to your heart. Still, taking maximum advantage of tax breaks for your charitable efforts can make a difference to your bottom line.

Simplify your end of financial year donations with portfolio giving. Think of it like a share portfolio; you can nominate multiple favourite charities to donate to from a large pool of over 2000 registered charities. You can give once (such as now at EOFY) or schedule regular donations that will suit your budget.

Setting up a charity portfolio takes less than 10 minutes and all donations are collated onto ONE tax deductible receipt!

Start your portfolio now before June 30 so you can make the most of your tax deductible contribution.

How charities are benefiting from your donations

As the government implements funding cuts to the charity sector, donations will be increasingly important to help charities be self-sustainable.

According to the 2016 NAB Charitable Giving Index charitable donations have increased by 6.5%, with the average donation raising by $12 to $348. This indicates a strong growth in the number and amount of donations made to a charitable organisation.

A category breakdown of the index indicates that alternatives to traditional fundraising, in particular online fundraising, have experienced the second fastest growth of 11% in a year. mycause Founder Tania Burstin supports this finding, commenting that personal cause and charity crowdfunding is growing in popularity.

We saw a 105% increase in crowdfunding from 2014/2015, which shows how committed Australians are to making a difference.

“In addition, we noted a 50% spike in donations in June to charities through Portfolio Giving. Donations to charity help these vital organisations continue to provide much needed and valued services, research and advocacy. A Portfolio allows donors to choose their causes and support what they feel passionate about,” added Tania Burstin.

Maximise your End of Financial Year tax return and donate to your favourite charities in one transaction with portfolio giving.

Start your portfolio and donate today.