In the lead-up to tax season – and often all-year round – lots of people like to donate to charitable causes.

Whether it’s cancer, heart disease, mental health, children’s illnesses, rare diseases, poverty, literacy or other charities, giving back to others can make us feel like we’re doing something good for people who are having a harder time than us.

In Australia, donations over $2 are often tax-deductible, which means the money you donate to registered charities can be used to reduce your taxable income. Remember to keep your receipts.

However, with scammers sometimes posing as legitimate charitable organisations, it’s important to make sure the money you donate ends up in the right place. Here are a few ways to check.

TIP: If someone knocks on your door and asks you to donate, you can always say no or tell them you have to think about it.

How to make sure charities and not-for-profits add up

1. Check if the charity is registered

Legitimate charities and not-for-profits should be registered with the Australia Charities and Not-For-Profit Organisations Commission (ACNC). Registration helps donors to find out a bit more about the charity, such as where they are based, who they help, how you can get in touch with them and their activities.

You can do a quick search to check if the charity you want to donate to is registered on the ACNC website.

2. Look for further information about how the charity uses its money

Before you donate, it could also be worth checking the website of the charity to find out more information about how they will use your donation.

You can look at:

• Annual reports
• Financial statements
• Website pages about impact or how the charity helps 

3. Ask fundraisers to see their ID

If you get stopped at a shopping centre or someone knocks on your door asking for a donation, it’s important to remember you can always say ‘no’ or tell them you need more time to think.

You can also ask to see identification that shows the person is, in fact, aligned to the charity they are representing. You can also call the charity to check if you’re unsure.

Like every article on this website, this is not personal financial advice.