With the end of financial year approaching, new research from Australian Red Cross (ARC) shows six in seven Australians (85%) donated to charities in the last 12 months,.
However more than two thirds (72%) said they don’t always claim their donations as a tax deduction, and therefore miss out on critical benefits they’re entitled to.
In the midst of a cost-of-living crisis, the independant survey of 1,000 Australian adults highlighted the generosity of Australians with the average donation in the last 12 months as $283.29.
Despite this, less than a third (28%) said they always include deductions for their charitable donations in their tax returns, while a whopping 35% said they never include them.
ARC Deputy CEO Penny Harrison said the research reinforced the unwavering commitment to supporting others less fortunate in Australia, but it was concerning that the majority of donors don’t always claim the benefits.
“The average donation of $283.29 is significant, and makes a tangible difference.”
“We know that for most people, a donation of any amount requires a level of sacrifice, therefore we want to ensure people are aware of the benefit available if they claim their generous donation at tax time,” she said.
A monetary donation over two dollars ($2.00) to a Deductible Gift Recipient (DGR) charity serves to lower the taxable income for a consumer, thereby increasing the refund at tax time. For this benefit to be realised, the donor must keep the receipt and actively claim their donation on their tax return.
Harrison said donations at the end of financial year can provide vital support to those who really need it, and with just under half of regular givers (41%) planning to make extra donations, it was important for people to ensure they support a charity they feel a connection with, but that also has a strong track record of success.
“We encourage people to do their research and choose a charity with demonstrated impact and measureable effectiveness in their work. That way, donors can be confident their contribution is making a genuine difference,” she said.
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