Check your tax-deductible gift status
CHECK YOUR TAX-DEDUCTIBLE GIFT STATUS
The bushfire crisis has seen an unprecedented number of donations to a range of NFPs. As a result, the need for good governance and record-keeping are as important as ever, the ATO has stressed.
Make sure that your NFP is operating for purpose. If it is a deductible-gift recipient, you can use tax-deductible gifts only for the purpose of the DGR category in which you are endorsed.
You must also keep records relevant to your organisation's status as a DGR. Records must show that gifts and deductible contributions are being used for your principal DGR purpose.
Good records help you to manage your obligations and make it easier to report and pay on time. Some of the basic records you may need to keep include:
- Governing documents
- Financial reports and operational records
- Tax invoices and income tax records
- Copies of reviews of entitlement to tax concessions, and
- Records to help prepare tax statements and returns.
Your records must be kept for five years and be in English or easily converted to English. You should regularly review your circumstances and entitlement to DGR.
The ACNC has several useful resources for charities, including a record-keeping checklist (https://www.acnc.gov.au/for-charities/manage/keep-charity-records/record-keeping-checklist) and self-evaluation checklist (https://www.acnc.gov.au/for-charities/manage-your-charity/governance-hub/governance-standards/self-evaluation-charities).
