This article explains when donations to church-related projects may be eligible for tax deductions. Italso outlines the role of Deductible Gift Recipient (DGR) status and how some church restoration projects may qualify through the National Trust.
Church members or other donors sometimes ask if their gifts to the church or special projects are tax-deductible.
In Australia, donations can only be claimed as a tax deduction if they are made to a fund that hasDeductible Gift Recipient (DGR) status, as recognised by the Australian Tax Office (ATO).
Unfortunately, most churches are not eligible for DGR status, so regular church donations are not tax-deductible.
The Synod currently operates two funds with DGR endorsement:
In addition, the St Peter’s Cathedral Music Foundation is also a DGR-endorsed fund.
Churches that undertake repair and restoration projects on heritage-listed buildings may be eligible to participate in a scheme operated by the National Trust, which enjoys DGR endorsement. Under the scheme, the National Trust establishes and administers a Deductible Gift Recipient account for individual heritage projects.
The Synod (on behalf of the parish) enters a Deed of Agreement with the National Trust SA, committing to undertake the conservation work. The National Trust SA sponsors and conducts the appeal and receives donations for the project, providing donors with a tax- deductible way to support the project. Funds are remitted to the parish as the project proceeds.
For more information, contact the National Trust of South Australia.
