October 15, 2021 3 min read

Quick advice for animal rescues new and old on managing donations

Source: Freepik

Aswith many things in animal rescue, creating Deductible Gift Recipient (DGR) receipts for your donors is not clearly explained when you start your animal rescue.

Unfortunately, this can be a real missed opportunity and might lead to fewer donations, reduced credibility and overall may reduce the number of animals you can rescue.

So I thought, surely there is a simple way to lay out exactly how animal rescues small and large can issue a DGR receipt that fits within the guidelines of being a DGR registered organisation.

And that’s what brought me to write this article and bring you the quick animal rescuer’s guide to creating DGR receipts.

I’ve collected information from the Australian Tax Office (ATO) website, particularly their page on receiving tax-deductible gifts, and collated here with a bit of bonus advice on increasing donations. As always, this is not financial advice and please refer directly to the ATO and seek financial advice where needed.

Issuing a DGR receipt is your choice

The ATO advises considering letting donors know that they can use other records, such as bank statements, when submitting their tax returns. That said, it’s always best to recommend they get financial advice on whether a donation is deductible.

There are three situations where you may issue a DGR receipt

  1. You receive a gift
  2. You receive a contribution for a fundraising event
  3. You sell goods through an auction

The receipt must include slightly different details depending on what the donation was

1. Gifts

Mandatory Details

  • Organisation name
  • ABN
  • A note that the receipt is for a gift

Optional Details

  • The amount of money donated
  • A description of what the gift was (if it was property)
  • The date the gift was given

    2. Fundraising Events

    Mandatory Details

    • Organisation name
    • ABN
    • A note that the receipt is for a contribution made in return for a right to attend, or participate in, the fundraising event
    • The amount of the contribution — if the contribution is money
    • The GST-inclusive market value of the benefit received in return for the contribution

      3. Auctions

      Mandatory Details

      • Organisation name
      • ABN
      • A note that the receipt is for a contribution made for the purchase of goods or services
      • The fact the contribution was made because the contributor was a successful bidder at an auction that was a fundraising event
      • The amount of the contribution — if the contribution is money
      • The GST-inclusive market value of the benefit received in return for the contribution

        To create a DGR receipt, the simplest way is through your accounting software

        • Find the function where you can create a regular receipt, and there will be a receipt template that you can edit.
        • In that template, you can add different receipt types for each type of donation mentioned, or you can keep the same receipt type and just make sure you include the relevant details each time you issue a new receipt.

          Why is setting up a system to issue DGR receipts so important?

          Issuing DGR receipts is one of the most important parts of building great relationships with your donors and ensuring that they are interested in donating in the future!

          Many people donate because they care but can only afford to do so, knowing they will receive a portion back in their tax return.

          So consider setting up an easy system to start issuing DGR receipts, particularly for donated goods, something that is often missed entirely by small and medium rescues.

          Have any more rescue questions? Comment below and ask them, and I’ll endeavour to answer them for you! After all, the more information we share in the world of rescue, the more animals you can save.

          Thank you for reading! This article was originally published on the Paws for Giving website.


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