Subject: Clarification of 'Sponsorship' for DGR purposes.
Enquiry details: Hello I am in the process of applying for DGR status for our not for profit charity incorporated in Western Australia. I would like to clarify the meaning of 'sponsorship' for our particular DGR purposes.
I have read the guidelines on the website; "In the context of the ATO and Deductible Gift Recipient (DGR) status, “sponsorship” refers to a payment made by a business or individual in exchange for a material benefit or advantage—such as advertising, promotion, or public recognition. Because sponsorship involves a commercial arrangement rather than a voluntary gift, funds received through sponsorship must not be credited to a DGR’s gift fund."
My question is, as a wildlife rescue and rehabilitation organisation, we receive donations from the public to support the rescue and rehabilitation of wildlife in our care . The donations are in the form of direct donations (gifts), and also what we have termed 'sponsorships' in the past (probably the incorrect term). What the 'sponsorships' relate to is a donor donating a monthly amount to contribute to the costs involved with rehabilitation a kangaroo joey who is in care. In return for their donations, we issue them with a PDF certificate sent by email thanking them for the donations they make which will be used to help cover the cost of the joey's care. The donations are not used for a specific joey, all of the funds go into the one bank account and are used to cover the cost of rehabilitation and rescue for all of the wildlife in care. The PDF of the certificate sent by email is the only 'material' benefit the donor receives.
Can these 'sponsorship' donations (we can change the terminology we refer to them by if needed) be credited to the Gift Fund? Would it be better if we issued a receipt instead of a certificate?
345 views
2 replies