EOFY: We Talked To Our Accountants About Giving

If you’re like us, you probably can’t believe that it is 11 days into June already! Where has the start of 2019 gone and why has it gone so quickly?!?! 

With June comes an important time for everyone in the charity space – The End of Financial Year. It’s a great time to do a fundraising campaign as charitable deductions are top of mind. Plus- it is a topical conversation that you can get involved in on social media. We’re all for that! Doing a call out for last minute donations in June can be tricky though. If you haven’t been working on telling your story throughout the entire year, a one off post can come off as a bit sale-sy and desperate. Which is not the kind of impression you really want to leave when asking for a favour!  

However, if you have been diligently sharing all of the ways you live your values, showcasing your awesome volunteers and the real impact you have on the community you work in, it may be a prime time to work an educational piece about giving into your content plan.

We talked to the accountants….

We talked to our accountants at Rise Business Solutions about the other side of giving- what the tax implication side sees this time of year. It’ll give you some background on how to talk dollars when speaking to your audience.

Here’s what they said:

In your years of working in tax accounting, what do you see in terms of patterns of donation and what makes people donate?

It is rarely a reason of financial gain that causes people to donate. In our experience, there is nearly no one who comes in at tax time and asks what the financial benefits of making a charitable contribution are. However, most people do donate at some point in the year. We see quite a few different styles of ways that people choose to contribute. Some people set aside a percentage of their income every year, others have ongoing monthly deductions from their pay that are automatically forwarded to a certain charity, and others have a very ad-hoc approach to giving, making large one-off donations in the instance of something like a flood. The commonality that we do see amongst donors is their emotional connection to the charities that they donate to.

What kind of endorsement does an organisation need in order to be able to issue tax-deductible receipt?

This is the most critical thing to let people know- that you are a “Deductible Gift Recipient”  (DGR). This means you are endorsed (approved) by the Australian Taxation Office (ATO) and can provide a tax invoice to donors which is imperative when filing their return.

When is the cut off day for donations?

Technically, it’s the 30th of June. However, this year that lands on a Sunday, so be sure to ask for donations before the 28th, which is Friday. This will ensure the money lands in your account before the end of the year.  

What percentage of a donor’s donation can be written off?

Really, it depends on two things. First of all, if it is a business or an individual, and second, their income. Currently, if a company makes a donation, they can see tax savings of 27.5- 30%. On the other hand, if an individual makes a donation it is largely dependant on their income. Tax savings vary greatly. These savings can be up to 47% if income is over $180,000, 32.5% in savings for an income of $75,000 and 19% in savings if an income is say $30,000. It sounds a bit confusing so I’ll put it like this, a $1000 donation is a $1000 deduction, which means for someone who is earning $75,000/year and taxed at 32.5%, this is a tax savings of $325. So, a $325 refund in their pocket.

Is there a minimum amount a person must donate before they’re able to write off their donation?

$2.

So there you have the facts.

Now, what are the main takeaways for crafting your post?

1. Make an emotional appeal.
2. Share what you are fundraising for, and the direct impact it will have.
3. Include an EOFY fundraising target and be specific about where that money would go to/how it would make a difference.
4. Centre your messaging around the urgency of the end of the financial year. Act now. 10 Days left to donate.
5. Make sure you schedule a follow up “Thank You” post. Perhaps give a shout out to a particular donor (with their permission of course!) and why they chose to donate.
6. Continue to tell you story throughout the upcoming year!

Good luck everyone!