Tax Deductible Donations - 2 Year "Contract" - Charitable Institutions

Michael from Totara Vale

Make sure what you sign up for...

We like to help with donations to charitable institutions - donating towards a good cause, where we can afford it.

In 2016 a marketing person came to us and signed us up for a two-year period for a worthwhile cause. This person explained that our donations at $25.00 per month would have to go over a period of two years only. Then stop, as we thought. Now, in 2019, these donations were still running, without the charitable institute asking for our authority or without just notifying us that the donations would be ongoing.

The same thing happened to us with another two-year scheme, for another charitable organisation. Starting beginning 2017 and still carrying on this year, six months over and above the two-year period!

We now have stopped both.

The point I wish to make?
When someone knocks on your door or stops you at a supermarket asking you to sign up for "two years only" (usually $0.50 or $1.00 a day...your choice how much you want to donate) - then TAKE CARE what you sign up for. Some charitable institutions seem to operate on what could be called the "Readers Digest" system: "If you don't say anything, we will continue your subscription". The difference here being that Readers Digest is up front with their system.

So - it's not about dobbing in some charitable institutions. You will have noted that I don't name them, since they are organisations that provide exemplary and sorely needed community services. I probably would not have minded with continued donations, but as a pensioner I now have to watch my budget.

Just make sure what you sign up for - and get a copy of the contract or agreement - and diarise the end date well in advance.

Cheers,
Michael