Being a business owner gives us significant power and the ability to really create an impact in the world.
The small act of making a donation to a charity that is doing good in our local community, nationally or globally can make a huge impact on someone’s life.
At tax planning time we look to clever strategies to minimise your tax, but what about a simple one like making a donation?
Here’s why donating to get charity tax deductions is a good idea and how you can maximise the difference you make.
- Understanding tax-deductible donations
Donating to charities with deductible gift recipient (DGR) status can make your contribution tax deductible. They just have to be $2 or more.
Depending on your own tax position, you can claim a deduction for your donation to receive a tax benefit. This means that by donating by 30 June 2018, you can obtain a tax benefit in this financial year as well as make a contribution to people in need.
Plus, if you give to a cause like the Big Impact Appeal, you can make your donation go even further.
- Choose wisely
To ensure your money is going to the right place, be informed about where your donation is going. For example, World Vision Australia, provide regular and transparent reporting on all our activities, operations and performance, both in Australia and overseas. It is central to how we demonstrate our accountability.
With a yearly internal and external audit process and over 80 per cent of every dollar going to our development work, giving to World Vision is a wise decision to help create a lasting impact.
- Maximise your impact at tax time
Look for charities that can offer a matching of your donation to multiply the power of your generosity.
World Vision and the United Nations World Food Programme have partnered to deliver one of the world’s largest food assistance programs. Through their Big Impact Appeal, you can increase the impact of your tax time donation.
For every dollar you donate, we can deliver up to 10 times the value in food assistance. You’ll not only help provide emergency food; you’ll also empower communities to overcome poverty – fighting hunger long into the future.
Or, if you’d like to help change a child’s life and transform their world, tax time is the perfect time to start building a relationship with a child and their community through Child Sponsorship. See how your donation provides long-term solutions to overcome poverty and give a brighter future to your sponsored child.
- Beat the deadline to make it count
To be eligible to receive a tax deduction this financial year, ensure you make your charitable donation before the 30 June deadline. Find out more about giving here.
- Keep your paperwork in order
You’ll need to keep a record of your tax-deductible donations made over the year to claim deductions for your donations.
There are so many different charities and causes to donate to but please make sure that you know where the money goes – not mainly funding a company that has been hired to raise funds or to cover administration costs!
Did you know you can also donate to Charities with your Flybuys points? From as little as 1,000 points you can make a $5 donation to Guide Dogs Australia, RedKite, SecondBite, Australian Red Cross or Cancer Council Australia.
You can also make giving part of your everyday business practices quite easily. For example, by partnering with B1G1 you become part of a global business giving initiative designed to create a world full of giving. Another way might be to consider using Humanitix as your event management system as 100% of the booking fees go towards closing the educational gap.
Charity begins at home so make sure you look locally as there are many really wonderful local charitable groups that could benefit from your gift!