THIS DOCUMENT IS A DRAFT. WE ARE NOT A DGR YET AND YOU CANNOT MAKE TAX DEDUCTIBLE DONATIONS UNTIL OUR DGR ENDORSEMENT IS FINALISED.
* This guide is intended to make it easier to understand what things BMS can accept as a tax deductible donation. This guide is not legal or financial advice. Always use a registered accountant or someone qualified to provide you with tax advice if you're unsure about something.
The first thing we have to do is clarify a few terms!
- ACNC - Australian Charities and Not-for-profits Commission - the government organisation responsible for managing charities.
- Not-for-profit (NFP) = an organisation that is not allowed to distribute profit back to it's owners or members.
- Charity = a not-for-profit organisation that has a charitable purpose as defined in tax law.
- DGR / DGR Endorsed = Deductible Gift Recipient / The ATO has confirmed the organisation is a DGR and you can make tax deductible donations.
Brisbane Makerspace (Meanjin Makerspace Inc.) is a charity registered with the ACNC and is DGR endorsed by the ATO. This means that certain gifts (ie donations) can be deducted from your taxable income which may reduce the tax you pay or result in a tax refund when you submit your tax return.
The ATO has very strict requirements. Your donation must meet ALL of the requirements below to be eligible. The treasurer can provide general guidance, but cannot provide legal or financial advice for you specifically.
- Your donation must be a "gift":
A gift is something that you donate without receiving something in return. If you receive membership credit or spacebucks, your donation is not a gift. The following are not donations and cannot be claimed: membership fees, vending machine purchases, raffle tickets, entry fees to events/workshops, merchandise you buy like mugs/shirts etc.
- Your donation must be in one of the following categories:
a. Cash of at least $2 or more. Read more on the ATO website here.
b. A physical item worth $2 or more that you purchased within the last 12 months. Read more on the ATO website here
c. A physical item worth $5,000 or more (can be purchase more than 12 months ago). Read more on the ATO website here
- The market value of your donation is used:
Regardless of how much you paid, the current market value on the day the donation was made must be used.
- You have a receipt/proof of purchase:
It's important that you keep a copy of your original receipt of purchase and the receipt BMS gives you. If you're donating something you paid cash for, ask the seller for a handwritten receipt. The ATO may ask you to supply them a copy if you get audited. If you can't, you may have to pay that tax back!
Once you're sure your donation is a deductible gift, read and follow the Donations and Loans policy. In the case of a cash donation, please email the treasurer for details on making the payment - it must go to a special account.
The treasurer can supply a receipt for any donation if you ask for one at the time you make the donation. We encourage you to ask for a receipt if you intend on claiming the donation as a tax deduction. We will generally not issue receipts for past donations, or donations with a value under $10 due to the time involved in preparing one. The receipt you receive must contain the following information (so check it closely):
- the name of our organisation (Meanjin Makerspace - trading as Brisbane Makerspace).
- our Australian business number (ABN).
- a note that the receipt is for a gift.
- the amount of money donated (or the value of the gift if it was an item)
- a description of the gift if it was an item.
- the date the gift was given.