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Donation receipt entity name

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Newbie

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Hi,

 

I'm running a charity that is registered with the ACNC and has DGR status. The registration is under the name The Enneagram Movement. We are looking to run a fundraising campaign for an initiative called Enneagram Prison Project Australia. So The Enneagram Movement will be the legal entity supporting the Enneagram Prison Project Australia initiative. We have registered the business name "Enneagram Prison Project Australia" under our ABN.

 

My question is in relation to receipts for donations. Can we simply use the name "Enneagram Prison Project Australia" on our receipts, or will we need to use the legal entity name of The Enneagram Movement?

 

Kind regards,

Kyle

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Community Moderator

Replies 1

Hi @KWinter ,

 

Thanks for your patience and apologies for the mix up with information.

 

As a DGR you are not required to issue a receipt, but if you do you must include certain information. If you don't include the specified information in your receipts, your DGR endorsement may be revoked.

 

Your organisation name, The Enneagram Movement, must be on the donation receipt. The information you need to include is:

 

• The name of your organisation (an abbreviation will be acceptable where the full name of your organisation cannot be shown on the receipt – however if the abbreviation does not readily identify your organisations you may need to publish the abbreviation publicly, such as on your website);
• Your ABN;
• A note that the receipt is for a gift.

 

You may also include additional information such as:

• The amount of money donated;
• A description of the gift if it was property
• The date the gift was given

 

You may include a note that the donation was made as part of the ‘Enneagram Prison Project Australia’ campaign.

 

Ultimately, for a donation to be tax deductible, your organisation needs to have complete discretion in deciding how to use donations according to the best interests and purposes of the organisation. However, donors can indicate a preference (for example, that the donation preferably be used toward the prison initiative where possible) and you can acknowledge this on the receipt.

 

If you would appreciate further clarification, you can contact our NFP Advice line , Monday to Friday, 8am to 6pm AESDT.

 

You can also view our webpage on Receipts as well as Taxation Ruling 2005/13 which discusses the tax deductibility of gifts including where donors have made a preference to how the donation should be allocated.

 

KylieS

 

 

5 REPLIES 5

Community Moderator

Replies 0

Hi @KWinter ,

 

We will look into this one for you and get back to you as soon as we can.

 

KylieS

Community Moderator

Replies 0

Hi @KWinter,

 

Thanks for your patience.

 

A tax deduction is not allowed for expenses  in ‘providing entertainment’.  It is likely that the fundraising function would fall into the category of providing entertainment to participants depending on the nature of the activities occurring at the fundraiser.

 

See the discussion about  Providing Entertainment for some examples of providing entertainment to staff.  (An exception applies to denying deductions for entertainment  where it is provided to employees. In that case a deduction for providing entertainment  is allowed, but ‘Fringe Benefits Tax’ is payable to the ATO.  However, the meaning of ‘providing entertainment still depends on the same principles when  provided to  non-employees.)

 

Thanks

 

KylieS

 

 

Newbie

Replies 1

Hi Kylie,

 

Thank you for the response.

 

I'm not sure I completely understand as I don't believe our fundraiser will fall into the 'providing entertainment' category. It will be an online crowdfunding campaign whereby the community will be donating to our charity. As we have DGR status, these donations should qualify for a tax deduction by the donators.

 

After reading the ATO requirements for DGR fundraising receipts, we need to include the following:

  • Name
  • ABN
  • Note that the receipt is for a gift
  • Amount
  • Date

My question is, for our receipts, can I use our registered business name of 'Enneagram Prison Project Australia' or do I need to use our legal entity name of 'The Enneagram Movement'?

 

Thanks,

Kyle

Community Moderator

Replies 0

Hi KWinter,

 

I have provided you with a response that is not applicable to you. I will get the correct information and edit that response.

 

Apologies

 

KylieS

Most helpful response

Community Moderator

Replies 1

Hi @KWinter ,

 

Thanks for your patience and apologies for the mix up with information.

 

As a DGR you are not required to issue a receipt, but if you do you must include certain information. If you don't include the specified information in your receipts, your DGR endorsement may be revoked.

 

Your organisation name, The Enneagram Movement, must be on the donation receipt. The information you need to include is:

 

• The name of your organisation (an abbreviation will be acceptable where the full name of your organisation cannot be shown on the receipt – however if the abbreviation does not readily identify your organisations you may need to publish the abbreviation publicly, such as on your website);
• Your ABN;
• A note that the receipt is for a gift.

 

You may also include additional information such as:

• The amount of money donated;
• A description of the gift if it was property
• The date the gift was given

 

You may include a note that the donation was made as part of the ‘Enneagram Prison Project Australia’ campaign.

 

Ultimately, for a donation to be tax deductible, your organisation needs to have complete discretion in deciding how to use donations according to the best interests and purposes of the organisation. However, donors can indicate a preference (for example, that the donation preferably be used toward the prison initiative where possible) and you can acknowledge this on the receipt.

 

If you would appreciate further clarification, you can contact our NFP Advice line , Monday to Friday, 8am to 6pm AESDT.

 

You can also view our webpage on Receipts as well as Taxation Ruling 2005/13 which discusses the tax deductibility of gifts including where donors have made a preference to how the donation should be allocated.

 

KylieS

 

 

Newbie

Replies 0

Hi Kylie,

 

Thank you very much for the response. That covers everything I needed to know.

 

Thanks,

Kyle