Claiming A Tax Deduction
The Foundation has received Deductible Gift Recipient (DGR) status from the Australian Tax Office, which means that donors can, subject to ATO laws, claim a deduction for donations to the Foundation. It is important to note that the responsibility for determining the value of a non cash gift rests with the donor and not the DGR. We would recommend that in all instances the advice of a taxation professional be sought prior to claiming an income tax deduction for non cash gifts donated to the One Light Charity Foundation.
Cash donations of any amount above $2-00 will be fully deductible.
Donations of Bartercard Trade Dollars:
The One Light Charity Foundation is not a tax advisor and cannot give individual tax advice. The ATO, however, generally regards that a donation of Trade Dollars to a deductible gift recipient is deemed as a gift of property, which must be valued by the ATO at more than $5,000 to be deductible. It is always recommend that when a Bartercard member is considering making a donation of Trade Dollars to a charity that they consult their tax advisor or accountant to discuss the particulars of the gift, the status of the done and determine how much of the gift may be deductible for tax purposes. Always seek tax advice for your particular circumstances.
Donations of Property / Trading Stock:
Property and / or trading stock, which is new and usable, was purchased during the 12 months before gifting, and has a minimum market value of $5,000 can be donated to the Foundation. Individual items from the same donor can be less than this amount provided that the sum total of all items, received at the same time, is equal to or greater than $5,000. It is important to note that determining the value of any donation for the purpose of claiming a tax deduction rests entirely with the donor.
Donations of Services / Your Time:
Under current Australian Tax Law a gift of a service is not tax deductible and that is because no money or property is transferred in that instance. With the assistance of Bartercard Australia a “services package” for a minimum value of $5,000 (for example 50 hours of accounting services at $100 per hour) can be sold to the Bartercard Trade Exchange, just like a normal sale. Bartercard Australia will pay the service provider in Trade Dollars ($A1 = T$1) and then offer the services package or parts thereof to its membership base. The service provider can then make a donation to the Foundation for a minimum amount of T$5,000, much the same as it would if it made a cash donation. If not an existing Bartercard member the service provider would need to become one on a temporary basis at no cost.