The tax deduction maze –
an interview with Bible Society NSW marketing manager Mark Lees

It’s one of our most frequently asked questions, and one of the most baffling – what is a tax deductible donation and what isn’t. Our marketing manager Mark Lees sorts through the maze.

Who gets tax deductible donations?
Charities only. The Australian Tax Office defines the precise role and range of activities undertaken by a charity.

So what is the definition of a charity?
It must achieve the relief of poverty or sickness, meet the needs of the aged, or purposes beneficial to the community, or the provision of child care services on a non-profit basis.

What is a non-profit organisation if not a charity?
Charities must always be non-profit. There is no profit to be given to particular people (such as shareholders), owners or members of the organisation.

So which type of organisations can receive charitable donations?
Public hospitals, health promotions, public universities, school building funds, public benevolent institutions, ‘necessitous circumstances’ funds, overseas aid funds, public libraries, museums and art galleries and finally ‘ancillary funds’.

So which category does the Bible Society work under?
We work under a registered ancillary fund. Not all the work of Bible Society is to relieve poverty, ignorance and disease. A lot of it is to evangelise, through the distribution of Scriptures. Where the distribution of the Bible is used to relieve poverty, ignorance and disease e.g. literacy classes or health and hygiene education – it can be funded from the ancillary fund, and is therefore tax deductible.

So how do you keep the monies separate – tax deductible from non-tax deductible?
The ancillary Fund has its own Australian Business Number, separate to the ABN of the Bible Society so that we can clearly define and be accountable for tax deductible and non-tax deductible funds.

So how will you apply tax deductible and nontax deductible donations?
If you want to claim a tax deduction for your donation, those funds will be applied to help people engage with their Bible by being taught to read, to fund home based care teams to go out and relieve the suffering of the poor and diseased through good works, prayer and Scripture readings.

A donation that is not tax deductible will allow Bible Society to fund unrestricted Bible distribution anywhere in the world, to any person, any congregation or any Bible study group. You will now notice, when filling in one of our donations forms, we ask if you want a tax deductible or non tax deductible receipt. It gives you greater choice of where you want Bible Society to spend your money.

If you have any more questions contact Mark Lees in NSW on (02) 9870 5603.

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