A school building fund is a public fund established and maintained exclusively for providing money for the acquisition, construction and maintenance of a building used as a school or college. This only applies to buildings used by a government, public authority, or non-profit association.
Gifts to a school building fund will qualify for a tax deduction where the school building fund has been endorsed as a Deductible Gift Recipient (DGR) by the Australian Taxation Office and no material benefit is received by the donor.
You can check whether a school building fund is a DGR at www.abr.business.gov.au.
To be tax deductible, gifts must have the following characteristics:
- They are made voluntarily.
- They do not provide a material benefit to the donor.
- They essentially arise from benefaction.
Gifts to a school building fund will not be tax deductible where the following material benefits are received by the donor:
- A reduction in school fees.
- The grant of scholarships to nominated students.
- Raffle tickets.
- Tickets to functions.