Is donating to an international charity tax deductible in Australia?
Yes, an overseas charity donation tax is deductible in Australia provided it is endorsed as a Deductible Gift Recipient (DGR).
For example, The Fred Hollows Foundation’s overseas aid fund qualifies under the Overseas Aid Gift Deduction Scheme (OAGDS) and is therefore endorsed as a Deductible Gift Recipient, including its overseas aid fund.
In this article we will help you understand which overseas donations can and cannot be tax deductible, and explain why a gift to The Fred Hollows Foundation, whether in support of our local programs or overseas work, is compliant with the Australian Taxation Office's (ATO) regulations.
Can I claim a tax deduction for donating to an international charity in Australia?
Yes, you can.
However, not all international charities qualify for Australian tax deductibility. Overseas donations are generally deductible when gifted to one of two types of charitable organistions:
- An Australian-registered charity with DGR endorsement, or
- An approved overseas aid fund under the OAGDS.
Is an overseas-registered charity donation tax deductible?
No, an overseas-registered charity usually does not qualify for tax deductibility unless it also meets the above criteria as well.
The key distinction here is between an international charity that is Australian-registered and operates overseas, compared to a charity that is only registered overseas. The Fred Hollows Foundation is an example of this type of international charity.
In the first case, a donation can be deductible in Australia (assuming the right DGR status), while in the second instance it usually cannot.
Can I donate to any overseas charity?
You can donate but not every international charity has the required endorsement for overseas donation to be tax deductible in Australia.
Unless your gift is made through a qualifying Australian DGR structure, you cannot just rely on an Australian tax deduction because the recipient organisation is a charitable one.
How do I check deductibility?
We recommend your first port of call being the charity’s ABN Lookup record. This will confirm whether it is endorsed as a DGR for the relevant fund or charitable activity.
If the charity is not listed as DGR-endorsed for the donation you are making, the gift is unlikely to be tax deductible.
What is the Overseas Aid Gift Deduction Scheme (OAGDS)?
The Overseas Aid Gift Deduction Scheme, or OAGDS, is the Australian tax framework that allows and determines approved organisations to issue tax-deductible receipts for donations made towards overseas aid activities. For the most part, these overseas activities will need to be in countries or regions classified as developing by the Minister of Foreign Affairs as well.
Under OAGDS, an Australian charity can be endorsed for a developing country relief fund. So if you make an overseas donation, you can still deduct it from your tax here in Australia.
Who is eligible under the OAGDS?
Previously this classification was referred to as an overseas aid fund, and from 1 January 2024, the ATO became the administrator for OAGDS-related DGR matters in Australia.
This means that nowadays the ATO assesses eligibility for these categories. It determines which Australian organisations that conduct or fund overseas aid work may be eligible, if they have an approved fund and meet the relevant DGR requirements.
How did the DGR rules change on 1 January 2024?
In 2024, the structure of the scheme was reformed and administration of four unique DGR categories, including overseas aid funds, was transferred to the ATO. Of course, transitional protections were kept in place for organisations and charities that had already been endorsed.
One of the key purposes of this rule change was that the endorsement process needed to be more consistent and uniform across the various DGR categories.
How did the DGR international organisation changes in Australia impact actual supporters?
For donors, the main effect was greater clarity about which overseas-focused organisations can and which cannot issue tax-deductible receipts in Australia.
- Less confusion
- Easier regulatory pathways
- Simpler to find out if the charity you are gifting to has the right Australian DGR endorsement for the donation you are making to be tax deductible
Does The Fred Hollows Foundation qualify for overseas aid donations?
Yes. Not only is The Foundation one of Australia's most trusted international aid charities but we are an OAGDS-endorsed organisation as we meet the Overseas Aid Gift Deduction Scheme eligibility criteria.
You can confirm this independently through the Australian Business Number (ABN) lookup. The Foundation’s record shows DGR endorsement, including for our overseas aid fund.
This means that for supporters who gift towards our overseas fund their donation is tax deductible.
What is The Fred Hollows Foundation’s overseas aid fund?
The Foundation’s overseas aid fund is an endorsed activity of our organisation and not a separate public-facing product.
For Australian donors, that means the receipt you receive can support a tax-deductible claim when the gift is made to the endorsed fund.
What is the difference between a DGR1 charity and an overseas aid fund endorsement?
DGR1 is the broad, general deductible gift recipient category. On the other hand, an overseas aid fund is a more specific DGR pathway for approved aid work outside Australia.
This distinction matters because not every deductible charity donation is made through an overseas aid fund. For example, if you are giving to an international charity, the fund structure and endorsement type can impact whether the donation is tax deductible.
Fortunately, The Foundation ticks both boxes: DGR and OAGDS.
Is the Foundation a registered charity in Australia?
Yes, we are. We are registered as an Australian Charity with the Australian Charities and Not-for-profits Commission (ACNC). Supporters of the Foundation’s overseas aid programs will receive a receipt with the endorsed fund details on it.
In other words, we are an Australian charity with an endorsed overseas aid program, and not an overseas aid fund. In fact, our overseas aid program helps end avoidable blindness in more than 25 countries across Africa, South Asia and the Middle East, South East Asia, and the Pacific. This is in addition to the work we do right here in remote and underserved communities in Australia.
Frequently Asked Questions
Can I claim a donation to The Fred Hollows Foundation?
Yes, The Foundation is a fully endorsed Deductible Gift Recipient (DGR) entity in Australia. If your gift is made to its Australian DGR-endorsed entity or fund then it can be claimed as tax deductible.
Can I claim a donation to a US charity?
In most instances, no. However, if your overseas gift is made through a qualifying and endorsed Australian fund according to the Overseas Aid Gift Deduction Scheme, it may be.
Is my donation to The Foundation’s overseas programs deductible?
Yes, it is.
All gifts to The Foundation, whether it is for our Australian-based work or made to our endorsed overseas aid fund is tax deductible.
We recommend that you seek the advice of a registered tax professional for personal tax advice specific to your situation and to find out more about how DGR endorsement works in Australia.
How can you make tax deductible donations to The Fred Hollows Foundation?
If you would like confirmation that your contribution has gone to the Foundation's overseas aid fund, check your receipt for the DGR-endorsed fund details. Find out more here.
Learn more about tax-deductible giving
How to claim a charitable donation on your tax return
Is my donation to a charity tax deductible?
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