As the end of the financial year approaches, it’s a great time to think about how charitable giving can make a real difference to the community and to the value of your tax return. Whether it’s donating to our Permanent Fund, one of our Key Impact Funds, or starting your own Sub Fund, your generosity can transform lives.
Here are five tax-smart ways to give before June 30.
Get an immediate tax deduction on donations
Every donation you make to Sydney Community Foundation over $2 is tax-deductible, helping to reduce your taxable income for the year. This includes donations to establish your own Sub Fund, which can be set up to reflect your personal giving priorities, act as a corporate foundation for your small business or create a family legacy. Here’s a handy table to show how much tax you could save.
NOTE: This table is an example only and will vary according to your circumstances, please seek individual tax advice and speak with your tax advisor. This information only applies if you are an Australian resident for tax purposes.
Taxable income | Tax Rate | Donation Amount | Tax Savings up to: | Actual Cost of Donation: |
$18,201 – $45,000 | 16% | $5000 | $800 | $4200 |
$45,001 – $135,000 | 30% | $10,000 | $3000 | $7000 |
$135,001 – $190,000 | 37% | $20,000 | $7400 | $12,600 |
$190,000+ | 45% | $50,000 | $22,500 | $27,500 |
Spread your deductions over multiple years
Not ready to claim the full deduction this year? The Australian Taxation Office allows you to spread your deduction over up to five years, giving you greater flexibility to manage your tax obligations effectively.
Get tax-free growth on your investments
When you donate to a Sub Fund, your contribution is invested to generate returns over time. These investment earnings grow tax-free, meaning your charitable dollars stretch further to create lasting community impact.
Get Capital Gains Tax relief on asset donations
Donating shares, property, or other appreciated assets can be a smart way to give. You won’t have to pay Capital Gains Tax on the value of the asset, allowing more of its worth to support the causes you care about most.
Include a bequest in your Will
Charitable giving doesn’t have to stop with you. Adding a bequest to your Will – such as a portion of your estate, a specific amount, or a residual gift – can create a lasting legacy that supports the community well beyond your lifetime. Plus, bequests can help reduce potential tax implications for your estate, making it easier for your loved ones.
DGR changes are coming that can boost the impact of your giving
DGR1 status will very soon be available to Community Foundation’s across Australia including Sydney Community Foundation. These changes implemented by the Federal Government aim to streamline and encourage giving for grassroots programs that strengthen our communities, whilst ensuring more Australian’s receive a tax deduction for their generosity. Stay tuned for more details on how this could further boost the impact of your philanthropy.
Get in touch with us today to explore how you can make the most of your giving, email us at enquiries@sydcf.org.au or phone (02) 8030 7050.
