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Re: Church tithing deductions

Initiate

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Hi,

 

I understand one can claim a tax deduction on tithing to a church that is registered as a deductible gift recipient (DGR).

However, is it possible for the church to administrate receipting for tithing by finalising some annual report to each tither, but also in a way for it to be included on an online tax return - similar to an income statement from an employer is reported to the ATO?

Maybe through the Deductions app?

Or does it all have to be manual?


I'm just concerned because we (the church) recieve thousands of dollars annually in donations/tithing, so we'd like to be as transparent to the ATO as possible and to simplify this for our members.

(I'm sure this is a grey area for many church organisations across the country, mainly because it's tough to talk money in churches. I haven't been able to find good answers anywhere.)

Otherwise can you provide suggestions of how to administrate this?

 

Big thanks in advance.

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ATO Community Support

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Hi @Mlepnos

 

I'd suggest that you review the record keeping for charities page on the Australian Charities and Not-for-profits Commission (ACNC) web site.

 

They have plenty of suggestions and external links about different record keeping systems. You just need to find one that's workable for your Church and your available resources.

 

You can view the ACNC keep charity records page here.

 

RichATO

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Devotee

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The person claiming the deduction would be required to produce evidece of such donation if asked.

 

As such - it is encumbent on the DGR organistion to have a system in place to provide such documentation/evidence. The ATO is not responsible for providing "administrative ease" to anyone. Think of it this way, every entity (be it individual or company) is reponsible for the own financial record keeping. Unless there's an overwhelming need (and it simply isnt demonstrate here), its not going to happen.

 

Just remember, our tax reigme is a self assessement reigme.

 

In terms of actual solutions - you would need to look at... non-cash arrangements, eg. using QR codes / electronic payment to generate receipts and automate your way out of this one. Yes this may represent more "work" on your end, but at the same time it's also your responsibility.

 

Most helpful response

ATO Community Support

Replies 0

Hi @Mlepnos

 

I'd suggest that you review the record keeping for charities page on the Australian Charities and Not-for-profits Commission (ACNC) web site.

 

They have plenty of suggestions and external links about different record keeping systems. You just need to find one that's workable for your Church and your available resources.

 

You can view the ACNC keep charity records page here.

 

RichATO