When is a ‘donation’ or gift tax deductible?

Discussion in 'Legal Issues' started by Harry30, 29th May, 2019.

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  1. Harry30

    Harry30 Well-Known Member

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    I want to provide some money for the care and welfare of a person living overseas (UK). The person is not related to me, but was in a long term (de facto) relationship of a distant relative of mine who recently passed away, and to whom I was close.

    Wanted to check. Are payments such as this a ‘donation’ and hence tax deductible? I didn’t think so.
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Do they have "registered charity" status in Australia?
     
  3. Harry30

    Harry30 Well-Known Member

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    Wouldn’t think so. Person is close to being homeless. Can I register a charity? Just trying to maximise the help I can provide.
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    They need to be a registered deductible gift recipient.
    Complex to set up, and I don't think it would work for one beneficiary.
     
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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    IIRC a charity only needs to distribute something like 30% to it's purposes (the rest can be blown on wages etc). A few years ago I thin that it was Warney who apparently underspent on the charitable side of thingsso copped a bit of flack from a regulator (the cost of putting on those big functions was quite high but he didn't recoup it in donations etc).
     
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  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    He is the reason I don't generally donate to organised charities
     
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  7. Scott No Mates

    Scott No Mates Well-Known Member

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    His was 'dis'-organised was it not :oops:
     
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  8. datto

    datto Well-Known Member

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    Boozing up on public donations lol Yeah Yeah

    Wonder if Mo was on the board?
     
  9. Perp

    Perp Well-Known Member

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    Getting deductible gift recipient (DGR) status is a major pain in the ass and can take years. A friend of mine recently went through it for a Foundation she established - which had prominent former politicians and jurists (including former High Court members) as board members - and it still took the best part of a decade to get DGR.
     
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  10. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Become a church. Its easier.
     
  11. money

    money Well-Known Member

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    How to setup a church? :D:D
     
  12. Scott No Mates

    Scott No Mates Well-Known Member

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    Tell them you're an altar boy :eek: