Donations using a Donation Point Tap device

October 1, 2021

On 22 September 2021, with effect from 1 July 2021 to 30 June 2026, the ATO issued Class Ruling CR 2021/62 (Quest Payment Systems Pty Ltd – evidence of a deduction for donations made to a deductible gift recipient via the use of an electronic donation collection device).

When a tax-deductible donation is made using a Donation Point Tap device, a receipt is not issued to the donor (although the donor can directly ask the DGR for one). However, the amount donated is recorded in the donor’s bank or credit card statement. While this transaction item is not a receipt for tax purposes, the ATO will treat it as sufficient evidence of entitlement to claim a gift deduction if the item includes certain information (the date of the donation, the amount of the gift and a description of the transaction using the format “GIFTDGR(ABN of DGR)”).