Information for Donors
AbaF provides information, advice and assistance to donors (individuals, families, businesses) and grantmakers (private and corporate foundations) on giving to the arts. We can help you connect with the artists and organisations that match your interests and objectives.
We regularly update the examples of registered projects that can be supported through the Australia Cultural Fund, and donors are encouraged to contact Kirsten Matthews, Australia Cultural Fund Manager for more information regarding their particular interest (eg, artform or location). For example, if you have a passion for Australian film we can let you know about some great things happening specifically in this area.
Who can make a donation?
Donations to AbaF’s Australia Cultural Fund can be made by individuals, businesses and some foundations (those which only require DGR status).
AbaF provides the benefit of tax deductibility for donations of $2 or more; however, there are some matters which must be considered, including the type of acknowledgement a donor can receive for their donation and what projects donors may nominate as a preferred beneficiary.
Donations can be made by:
- cheque
- money order
- credit card (Visa, Mastercard)
The following considerations apply to donations to enable a tax deduction to be claimed:
- donations must be made unconditionally to AbaF (although a donor may express a preference for where their donation is granted)
- donations must be voluntary
- donations must be accompanied by a completed donation form which has been approved by AbaF.
Donations are not subject to GST.
Donors contribute to AbaF’s Australia Cultural Fund for a variety of reasons which may include:
- a desire to help an emerging artist build a career
- a desire to support local cultural activity, artists or organisations
- love of an artform and desire to see it prosper
- a desire for their company or business to demonstrate good community citizenship
- the attraction of tax deductibility
Donors:
- may nominate a registered project as their preferred beneficiary
- must not receive or have an expectation of any benefit, advantage, right or privilege for their gift apart from tax deductibility
- donors may not make a gift to a project from which they, a relative or partner will receive any benefit
- will receive AbaF issued tax receipts for donations of $2 or more to substantiate claims for tax deductibility
- must acknowledge that, in line with ATO requirements, they cannot insist that AbaF applies their donation to a specific project
- should note that all claims for a tax deduction are subject to acceptance by the Commissioner of Taxation
- who are uncertain of their position are encouraged to obtain professional advice
- may make their donation anonymously
Donor recognition is an important element of successful fundraising. Artists and cultural organisations (who have encouraged their supporters to donate to AbaF) can recognise the contributions of donors in modest ways including:
- letters of thanks
- meeting the cast, exhibiting artists
- attending dress rehearsals, exhibition previews
- free newsletters
- names on seats, plaques, honour boards etc
- lists of donors in publications including annual reports, websites
Unacceptable forms of recognition and benefit include:
- complimentary refreshments
- free or discounted tickets to performances, opening nights, galas
- free artworks, music CDs
- advertising (for example company logo on catalogues, programs)
- signage at venues
- reduced membership rates/levies
Frequently asked questions
Q. I want to donate to the arts, why do I have to make the donation payable to the Australia Business Arts Foundation?
A. There are more than 1000 cultural organisations included on the Register of Cultural Organisations (ROCO) administered by the Department of Communications, Information Technology and the Arts. All of the organisations on ROCO maintain a public donation fund and can provide you with a tax deductible receipt for your donation.
If the non-profit cultural organisation you would like to support is not included on ROCO (or if you want to support an individual artist) your donation would not be tax deductible. An individual artist is not able to be listed on ROCO and, therefore, not able to offer tax-deductibility for a gift.
The Australia Cultural Fund is a unique facility which allows donors to make a gift to AbaF and nominate an artist or cultural organisation registered with AbaF as the recipient. AbaF provides donors with a tax deductible receipt for the donation and takes the donor’s preferences into consideration when making discretionary grants. AbaF is a Deductible Gift Recipient (DGR) and listed with the Income Tax Assessment Act 1997 (ITAA).
Q. I want to nominate a particular organisation/artist as the recipient of my donation. How do I know that these funds will go to the organisation/artist nominated?
A. In line with ATO requirements, all donations must be made unconditionally to AbaF. Donors may nominate a registered project as a preferred beneficiary; however donors cannot insist or direct that their donation benefit a specific project. Similarly, AbaF cannot guarantee that donations will be directed to a specific project. If AbaF were to give such a guarantee, the tax deductibility of the donation would be compromised.
The AbaF Board takes into consideration donor preferences when making discretionary grants to registered projects.
Q. What do I need to do to make a donation?
A. Contact AbaF or the artist/organisation you are interested in supporting. All donors to AbaF are required to complete an AbaF donation form to enable a tax receipt to be issued.
Q. Will I be issued a tax receipt for my donation?
A. Once all AbaF requirements are met, AbaF will issue a tax receipt. All donors to AbaF should note that all claims for a tax deduction are subject to acceptance by the Commissioner of Taxation. Any donor who is uncertain of their position should seek independent advice.
