Does GST Apply To Fundraising Campaigns?

Collecting Funds

In general, GST is not payable on funds collected. This applies to donations and the type of sponsorship being offered at Pic Sponsors™. Commercial sponsorship (like naming rights for an event or stadium) is advertising and is subject to GST, however the public recognition given to a donor or Pic Sponsor™ is not considered commercial advertising and is therefore not subject to GST[186].

Doesn't the term 'sponsor' imply a tax obligation?

No, no more than 'sponsoring' a child in a developing nation, as is also established in Australian tax law[174]. In a Pic Sponsors™ campaign, sponsorship refers to the supporters intention of achieving an objective with the funds donated, not to commercial advertising.

N.B. While the above applies to all campaigns, there is additional consideration given to Deductible Gift Recipients (DGR).

Your GST Obligations

If you as a fundraiser are registered for GST, GST may be payable if you offer tangible benefits to sponsors/donors. This includes member privileges like voting, discounts, or entry rights. Please seek your own professional advice in this regard, however Pic Sponsors™ is pleased to support you using your campaign page/s to offer tangible benefits, products or services.

Remitted Funds

When Pic Sponsors™ is registered for GST, GST will be payable on the commission amount withheld by Pic Sponsors™ and on the 25c transaction fee. You will be notified and receive a tax invoice accordingly.