Skip to Content

Office of FINANCIAL SERVICES

Donations and bequests

The University is endorsed by the Tax Office as a deductible gift recipient. (DGR). This ensures that bona fide donations made to the University can be claimed by the donor as an income tax deduction.

Monetary Donations

All monetary donation and bequests are credited to the University Gift Fund clearing account. In order to qualify as donation, the amount received must be voluntary and the donor must not receive any material benefits from the amount donated. Under the GST legislation, donations are not consideration, and hence does not constitute a taxable supply. All donations are outside the scope of GST and are coded NA, the GST code designated for out of scope of GST.

Material Benefit

According to the ATO a material gain or benefit would not include

mere acknowledgments such as a mention in a newsletter or periodical, or a plaque if the plaque is a small cost and is not prominent. However, enlarging the acknowledgment into forms of advertising would result in a material gain or benefit flowing to the donor.

Providing a financial report to account for how the grant money has been expended

Banking Procedure for Donation

All banking in of donation must be coded to D21 payment type code, which automatically credits it to the "University Gift Fund" account. The amounts in the "Gift Fund" are allocated to various accounts in the University. The basis of allocation reflects the proposed purposes that the donor wishes to give voluntary support, but with no benefits accruing to them.

Third party documents, such as a letter from the donor, accompanying the donation cheque are filed monthly to substantiate the donation. In the absence of third party letter, the delegated officer in the Divisions/Offices are required to complete a:

Tax deductible receipts are issued by the University cashier and forwarded to the Division/Offices for the delegated Officer to send the receipt together with an acknowledgment letter.

Donations above $500 are reported to the University Council

Non Monetary Donations

Non monetary donation, such as free use of software licence, equipment are recorded in the fixed asset system as donated asset at the valuation advised by donor. The University maintains a list of non monetary donations. No accounting entries are generated to book this in the ledger. Like monetary donation, it qualifies only as a donation when the donor does not receive a material benefit from the University.

[Back to top]