Introduction 

Donors are generally eligible to claim a tax deduction on gifts made to ASF as set out in our donor terms and conditions. 

However, a deduction may not be claimable where the donor is a Relative or Associate of the nominated beneficiary campaign. In practice this is most likely to arise where either the donor or the beneficiary receives a ‘material benefit’ as result of the donation. The question of whether a relative or an associate of a donor receives a ‘material benefit’ depends on the circumstances in each case – see Paragraph 156 onwards of the Taxation Ruling 2005/13 for guidance. 

The guidelines below are intended to help donors identify circumstances where a deduction may not be claimable, but this is a complex area and the position depends on the circumstances of each case.  These guidelines are not legal advice, and donors should review the relevant Tax Ruling or seek guidance from an adviser or from the Australian Taxation Office (ATO) if in doubt prior to submitting a claim. 

If the donor is a Relative of the beneficiary (eg a blood relative, partner or spouse) or Associate of the beneficiary (eg in a Partnership or are Directors of the same entity) and the donation results in a “material benefit” to either the beneficiary or donor then a deduction may not be claimable.  

For further information on the definition of Associate, please see section 78A Income Tax Assessment Act 1936.  

Examples 

Q: My son is an emerging athlete but as he is still at school I fund all costs of his athletic career – equipment, training, travel to events etc. Can I donate to his ASF campaign and claim a deduction instead of paying these costs outright? 

A: No. This would result in a material benefit to you as it reduces costs of paying your son’s expenses. 

Q: It is expensive paying for the purchase of sports equipment for my children. Can I set up an ASF campaign and claim a tax deduction on donations to fund these purchases instead? 

A: No. This would result in a material benefit to you as it reduces costs of paying for the equipment directly. 

Whilst most donations to support a campaign run by a club or organisation will be tax deductible, there are some circumstances where this may not be the case. 

If the funds are donated to support a specific individual at the club and the donor is a relative or Associate of that individual a deduction may not be claimable if the donation results in a “material benefit” to either the individual or the donor. 

If the funds are donated to support a specific team within a club, and the donor is a relative or Associate of an individual within the team a deduction may not be claimable if the donation results in a “material benefit” to either the individual or the donor. 

Examples 

Q: I have donated to help my local sports club’s campaign to raise funds for new change rooms. My children and I all play for the club. Can I claim a tax deduction?  

A: Yes. The benefit of the gift will apply to all current and future members of the club, and so no “material benefit” arises for you or your relatives. 

Q: I have donated $1000 to my local club to help fund the costs of my daughter’s team travelling to the Nationals, instead of paying the $1,000 travel fee requested of all parents. Can I claim a deduction? 

A: No. A “material benefit” arises as you no longer have to pay the requested fee.