Why do donors give? 

Philanthropic donors give to the arts and cultural sector for many reasons, but at the heart of giving is care. Motivations can be emotional or practical. They're shaped by relationships, circumstances, identity and the desire to make an impact. 

Donors may give because they: 

• believe in the value of arts and creativity 
• feel a personal connection to an organisation, artist, art form or place they love 
• identify strongly with an organisation or artist’s mission, purpose, values or community  
• want to respond to a specific or urgent need, moment or opportunity 
• want to make a social or cultural impact 
• want to honour a person, personal memory or family tradition 
• are influenced by peers or others to donate 
• seek personal recognition, either in public or in private 
• want to take advantage of tax deductions. 

Sometimes donors give simply because they were asked. 

Why it helps to understand donor motivations 

Philanthropy is about relationships.  

Developing good relationships helps attract donations. When you understand a donor’s motivations, you can tailor how you nurture the relationship to inspire giving.  

You need to help each donor see: 

• the value of their gift 
• how their support will make a difference 
• how their support aligns with their goals or motivations. 

Tax deductions and donations 

Some donors may be more willing to donate if the donation is tax deductible.  

Donations are only tax deductible if they meet the tax rules. 

When are donations tax deductible? 

Donations to eligible arts and cultural organisations are tax deductible when: 

• the organisation is endorsed by the Australian Taxation Office (ATO) as a deductible gift recipient (DGR) 
• the donation meets the ATO requirements for a gift or donation. 

If you’re an individual artist or ineligible organisation, you cannot get DGR endorsement. Without DGR endorsement, donors cannot claim tax deductions on donations they make to you. But there is an exception. If you fundraise on the Australian Cultural Fund (ACF) platform, the donations are tax deductible.   

How to use the Australian Cultural Fund  

Any artist or arts and cultural organisation, with or without DGR endorsement, can use the ACF platform to fundraise for arts and cultural activities.  

This means donors can claim tax deductions on any donations they make to your project on the ACF platform