Receipting for Donations

Preamble

1.1 The University is endorsed as a ‘Deductible Gift Recipient’ under the Income Tax Act 1997. The University has developed the following policies and procedures to ensure compliance with the requirements associated with this endorsement.

Policy

2.1 The University will maintain one general gift fund. All donations will be receipted to the general fund in the first instance. Separate funds exist for the Library and the Art Museum.

2.2 Receipts issued for a tax deductible donation must include the following:

• name of the University
• the University’s ABN (65 542 596 200)
• a statement that the funds are a donation
• amount of money donated
• if gift is property, a description of that property
• date of gift
• the area of the University to which the funds are being donated (preferably including the account number for that area)

2.3 The reconciliation of gift fund transfers will be undertaken on a monthly basis.

2.4 The Taxation Accountant will review the Gift Fund Account on at least an annual basis and will place a record of this review on the relevant central file.

2.5 The University will inform the Australian Taxation Office if entitlement to endorsement ceases.

Definitions

3.1 Donations include:

• monies given by an individual or company with no material benefit to the individual or company
• bequests
• monies given by a group for a particular purpose (although this purpose must be consistent with Division 30 of the Income Tax Act 1997.
• distributions from charities
• donations which are not tax deductible provided they are made for the principal purpose of the fund

3.2 The following are not considered donations:

• income from sponsorship
• income from government organisations
• proceeds from raffles, auctions or fundraising dinners
• payments where a material benefit is provided

The Tax Accountant can provide advice regarding whether income should be treated as a donation.

Procedures

4.1 On receipt of a donation, obtain the account number for the account into which the funds will be transferred, including cost centre and project code. When transferring funds to the cost centre and /or project, the natural account code 0991 (gift fund transfer) must be used.

4.2 If funds have been deposited in person, advise the person that it will be necessary to deposit the funds into the ‘Gift Fund Account’ in the first instance.

4.3 Issue a receipt which indicates the gift fund account number has been credited:

01.822.00429.0502

No other combination is to be used.

Tax Code = N/A

4.4 The receipt must be clearly marked with the word ‘DONATION’.

4.5 A copy of the receipt, letters, or any other information accompanying the donation is to be given to the Cashier’s Supervisor for transfer of the funds into the appropriate account (refer 4.1).

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