As we end another financial year, your thoughts may turn towards how you are making your money work for you and the world you want to see. When you’re busy making ends meet, it can be hard to consider how to help others as well. That’s where tax incentives can help us all help each other.Â
Gifts and donations of above $2 to charitable organisations like Caritas Australia are tax deductible, meaning you can make your money work both for you and for others in need.
Every donation to Caritas Australia and charities like ours genuinely transform lives. The Australian tax incentive for charity donations works to strengthen the endurance and sustainability of non-profit organisations. It means we can all contribute to the causes we are passionate about and make the world a more giving, compassionate place.
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How charity donation tax deductions work
If you donate money or a gift to an organisation that has the status of a deductible gift recipient (DGR), you can claim this on your tax return at the end of the financial year. All your eligible donations will be subtracted from your taxable income in that year, meaning that you’ll get a higher refund on tax paid or a reduced debt on the tax you owe.
You can find all the detail about tax deductions for charity donations at the ATO website. If you are in any doubt about what you can claim, it’s always best to seek advice from a qualified accountant or financial adviser.
Caritas Australia is registered as a deductible gift recipient (DGR), so you can claim deductions in your income tax return this year for any amount donated to us this financial year.
Cultivating a culture of giving
We believe that a better world is one in which we all contribute, in whatever way we can, to prosperity and opportunity for all. We strive to lead by example, as compassion in action. But none of our work would be possible without donations and support from our community. Every donation, big or small, contributes to our ability to make a difference to the lives of vulnerable communities around the world.Â
Witness the change you make
We pride ourselves on the transparency and accountability of all our work, so you can see directly how your donation brings hope and change. 87% of our funds each year are spent directly on local and international programs, including vital education and advocacy programs in Australia. 3% of funds are spent on administration and 10% on fundraising so that we can maintain and expand our humanitarian partnerships.
Caritas Australia has earned the trust of our partners and community of supporters across many years of careful stewardship, open and transparent operations, and direct measurable impact on the lives of those we work with.
Transforming lives with your help
A perfect example of how donations help us help others is our Upholding Community Dignity Together program, which is working with vulnerable communities in Cambodia to provide access to clean, safe water. Water seems such a simple thing, and yet more than 2 billion people around the world lack access to clean water. Water affects every aspect of life and directly affects a community’s ability to thrive and grow. Only with water can families grow crops and food. Only with water can children grow healthy and strong. But many communities are forced to buy water, meaning they can’t afford to send their children to school or ensure their health and wellbeing.Â
Coming up with long-term, sustainable solutions to problems like this involves collaborative effort and financial resources. Projects like this only happen with your donations and support. When we work together in this way, we have the power to help support people to gain the skills and resources they need to tackle water scarcity in their communities, building better lives.Â
So, this financial year, make a tax-deductible donation to Caritas Australia and together, we can support communities to forge a path out of poverty.Â