Vanguard Charitable Charity Charitable deduction for charitable contributions in 2020

Charitable deduction for charitable contributions in 2020

More than 1 million charitable deductions have been recorded in the year 2020 and they are likely to grow by about 30 per cent to nearly 2.4 million, according to a report published today by the Charities Aid Charity Relief Unit.

Charities Aid charity relief unit chief executive director Mark D’Arcy said the increase in charitable deductions was driven by a number of factors including higher levels of social welfare spending and the increased availability of tax relief in 2020, with some states particularly strong supporters of charitable deductions.

The average deduction for a family of three in 2020 was $8,000, up from $7,500 in 2020.

Mr D’Arthur said the rise in charitable deduction figures was likely to have been driven by higher levels, particularly in the Northern Territory, where the tax relief has been strongest.

He said the number of deductions recorded in 2020 would be similar to the figures recorded in 2017, as the amount of charitable deduction receipts in 2020 has been relatively flat.

Charitable deductions are generally used to support social welfare programmes and are usually deductible on an income basis, rather than as a tax payment.