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Why are donations tax deductible?

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Last time you were here, you were looking to help vulnerable children and families. Your support can save and change lives.

In Australia, donations to registered charities like ours are tax deductible — it’s one way the government encourages individuals and organisations to support important causes.  

When you donate to ChildFund Australia, your gift helps deliver essential programs that protect, educate, and empower children and families in need. And when tax time comes around, you can claim your donation as a deduction, which may reduce the amount of income tax you pay. It’s a win-win: you make a meaningful impact in the lives of others, and you receive a financial benefit in return. 

So, not only does your generosity help create a brighter future — it also makes financial sense. 

In Australia, there is no upper limit on the amount you can claim as a tax deduction for charitable donations — as long as certain conditions are met.  

Your donation must be made to a Deductible Gift Recipient (DGR) — a registered charity or organisation approved by the ATO like ChildFund Australia. 

 – You can claim donations of $2 or more. 

 – The donation must be a true gift, meaning you don’t receive a material benefit in return (e.g. a raffle ticket or dinner). 

 – You’ll need a receipt from the charity that includes their ABN and confirms it’s a DGR. 

 – Donations are claimed in your individual tax return in the year they were made. 

While there’s no set cap, the donation deduction cannot create or increase a tax loss. If your deduction is larger than your taxable income, the excess can be carried forward to future tax years.