Home topics news Source: Allef Viniscus on Unsplash Finance News Finance ATO urges caution in claiming tax-deductions for flood donations Rhea Laxmi Nath April 13, 2022 As Australians step up to support flood-impacted areas through charitable donations, the Australian Taxation Office (ATO) urges caution when claiming these deductions. In 2019-2020, over 4 million Australians claimed deductions for $3.7 billion to not-for-profits and charities. “Before rushing to claim a donation in your tax return, it’s important to understand what makes a donation tax-deductible,” explained Tim Loh, ATO Assistant Commissioner. “The donation needs to be made to a deductible gift recipient (DGR).” Only organisations or funds endorsed as DGRs by the ATO , or in some cases listed by name in the tax law, are entitled to receive tax-deductible gifts or donations. Sometimes DGRs authorise businesses, like a supermarket, to collect donations on their behalf. Notably, not all charities and not-for-profits are DGRs. “We know crowdfunding campaigns are growing in popularity, but they may not be run by a DGR, so it is important to check whether your charitable gift or donation will be deductible at tax time. Taxpayers can confirm an organisation’s DGR status by checking the ABN Lookup on business.gov.au ,” Mr. Loh said. Deductions can still be claimed if individuals receive token items of no material value that are used to promote the DGR like stickers or lapel pins. However, expenses like shopping at a Red Cross or Vinnie’s op shop cannot be counted as a tax-deductible gift. In