This was posted 5 years 4 months 11 days ago, and might be an out-dated deal.

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Donate $15 to Red Cross and Receive $30 off @ Elite Electronics

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Hey folks,

As a keen OzBargainer recently noted, we offer a $10 discount on our website if a buyer makes a $5 donation to the Red Cross, and a $20 discount for a $15 donation via our website, 365 days a year. All customer donations are combined with our own regular donation and sent to the Red Cross. There's great enjoyment to be found in bringing the latest products and best deals to our customers, as well as doing our bit for the community.

We're kicking things up a few notches for the next week however - we've decided to increase the incentive to donate to this worthy cause. Until 18/12/18, we're offering a $30 discount if you make a $15 donation via our website.

"Woah, so wait - I donate $15 to the Red Cross via the Elite Electronics website and I get $30 to spend across the site?". Yep. :)

It's the season of giving, and we want your loved ones to not only be given some great new gear for Christmas (that you scored from us for a steal with your discount), but to know that they as well as the wider community are supported when help or relief is needed. Please help us make an even bigger impact this month by supporting this very worthy cause.

Wishing you all a safe, happy, and gadget-filled Christmas and New Year from all the team at Elite Electronics!

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closed Comments

  • +1

    Any deals?

  • +5

    Yes, I believe in KARMA

    • But not altruism

      • This is definitely not caused by vaxing!

  • +2

    Do we need to donate through Elite Electronics? Sounds like we will not receive a tax receipt and therefore not tax deductible.

    Edit: donate button wasn't showing on mobile, but on desktop there is a button for it. You are donate to

    Altru Enterprise Pty Ltd

    • So what? You're already doing a good deed and being rewarded generously for it.

      • +1

        So it is a trust thing whether they will pass on the $$. However the discount itself, pay $15 to get $30 voucher, sounds like a decent discount.

        This is different from what it sounds like in the title

        Donate $15 to Red Cross

        I and a regular donator to Red Cross and I get a tax receipt from them. I was asking as to see if I would be eligible but you need to donate through the website.

        • +2

          Well if you make a $15 donation and declare it on tax you get back like $4? Losing a $4 refund vs getting a $30 coupon + actually giving money to the red cross seems like a good deal.

          • @ClintonL: We agree with this sentiment. Thanks for your support and feedback Clinton. :)

        • Hi CodeXD,

          It's a campaign that we elect to run to support the Red Cross, so the donation definitely has to take place through our website using the 'Donate' button on the homepage, which we detail in our description above.

          Hopefully this helps to clarify, and feel free to let us know if you have any further queries at all.

          • +4

            @eliteelectronics: Applaud the action assuming it's all as it seems. Fund raisers typically take a significant % of donations so…
            Full disclosure:
            Does the FULL donation go to Red Cross and does your company receive any benefit from the donations - eg tax deduction/concession?

            • +1

              @[Deactivated]: Hi Possumbly, thanks for your feedback. We can definitely and wholeheartedly confirm that the full amount donated by buyers goes to Red Cross along with our own company donation; we do not keep any portion of the donations.

              • @eliteelectronics: what about GST? $15 is taxable supply so you will have to pay 10% GST on every $15 you collect. That will leave you with just $13.64. How can you therefore promise to donate full amount?

                You know, there is a reason you don't see "deals" like this in Australia. It's inefficient to donate through middle-man. Donators cannot claim tax-deduction, middle-man has to pay GST and most of all - there is no accountability unless you voluntarily pay for audit which is another cost on top of all this.

                • @lubos: GST is not levied on donations to registered charities.

                  "Middle men" who raise funds while not taking a % of the donation is hardly inefficient for the charity.

                  • @[Deactivated]: That's not correct.

                    If charity sells something to you, they have to pay GST on it. Go to Red Cross online shop, try to buy something and you will see 10% GST charged at checkout.

                    edit: not sure I misread your comment or you made an edit to clarify. Anyway… donation is GST-free only when there is no expectation on the part of the donor to receive anything in return for donation. Clearly this is not GST free donation because you are making it to get something in return ($30 gift card).

                    They are not collecting donations on behalf of Red Cross. They are selling $30 gift cards for $15. And they will have to pay GST on that $15.

                    • @lubos: It IS correct, in general, especially for freely given cash donations. Your next comment is an entirely different issue.

                      I was editing when you replied so here's the full text:

                      "Middle men" who raise funds while not taking a % of the donation is hardly inefficient for the charity. The question is - is this company claiming a tax deduction for the donations it collects from others, in which case it is getting a benefit? Even IF that's the case it is up to donors to decide if the trade off (their tax deduction V a discount) is worthwhile. My point is that all arrangements should be transparent.

                      • +1

                        @[Deactivated]: Of course they will be claiming tax deduction because donating to Red Cross is tax deductible. What makes you think they will not be claiming tax deduction?

                        However it's irrelevant. You know why? Because those $15 payments they receive from customers are sales. These sales will increase their taxable income and subsequent donation to Red Cross (if they will make it) will decrease their taxable income by the same amount. So no benefit even after claiming tax deduction.

                        What I'm trying to say is that they will also have to pay GST on those $15 sales. I was basically trying to support you in challenging them by saying they will not donate full $15 to Red Cross because portion of it will be eaten by GST.

                        … and you have gone of the rail defending them how registered charities don't pay GST on donations.

                        They are not registered charity and you are not making a donation to them.

                        • @lubos: Third parties can and do collect GST-free donations to charities. There's nothing wrong with that whatsoever, as long as they do it with the approval of the charity. An artist did it for a cancer charity on OzB not long ago. https://www.ozbargain.com.au/node/407174

                          Donations aren't sales and like gift cards, provision of the coupon/code doesn't guarantee a sale. The business seems to be altruistically offering donors a discount but the store rep should clarify.

                          IF they're claiming a tax deduction on donations they collect from others they should be saying so. It does appear that this is the case. The ATO might be VERY interested if that is the case.

              • @eliteelectronics: Nice thing you're doing here, this is a bargain. Don't get to caught up on the stupid questions here, you've already answered everything relevant about tax and the charity.

                • @idonotknowwhy: "you've already answered everything relevant about tax and the charity".

                  Obviously not, but hopefully we'll get there. My question was simple enough, and easily answered.

              • @eliteelectronics: Thanks, that's PART of the question answered. By not answering the second part you are leaving it open to people to reasonably assume that you claim the full tax deduction for your own company donation AND the donations of others.

                So, can you please clarify:

                …does your company receive any benefit from the donations - eg tax deduction/concession?

                • @[Deactivated]: Still not sure how you think they are going to benifit from this? As lubos said, if they take $15 from the customer, their income goes up by $15. When they donate to the charity they get a tax deduction of $15. End result is no company tax paid on this $15. I can't see how they benefit from it though?

                  • @dazweeja: Collecting a donation is NOT income to the business unless they have structured it such that you are purchasing a code, which I doubt. That may be where Lubos and I have been at loggerheads so thanks for your comment.

                    It does appear from their Fundraiser links that they do indeed claim other people's donations as a tax deduction. Very murky unless they've already sorted it out with the ATO. To their credit they are also donating their own money

                    Anyway as I said above, whether this is a good deal to buyers is up to them to decide.

                • +1

                  @[Deactivated]: Hi folks, our apologies for the delay - we hadn't realised this offer would create such debate! :)
                  Discussion is healthy and welcome though, and we believe in complete transparency, so we'd definitely like to clarify this further:

                  The entire donation amount is given to Red Cross - if you donate $15, that whole $15 goes directly to Red Cross along with our $1,000 contribution. The PayPal account to which donations are made is purely and solely setup to receive Red Cross donations from our customers. At the end of the month, these funds are forwarded directly to Red Cross alongside our contribution, together as one lump sum payment. Come tax time, we do claim a tax deduction on the entire donated amount as it's not individualised.

                  The benefit to our customers and Red Cross we feel far outweighs the $1-4 deduction at best that might be claimed by the individual, and the discount we offer in exchange for the donation in the first instance also outweighs the deduction we eventually receive.

                  There's no ill-will or ulterior motive here - it's a simple 'do a good deed and enjoy a reward' scenario that we're offering to our customers. We believe in and are immensely passionate about this cause, and it's really no more complex than that.

                  Hopefully this helps, and feel free to let us know if you have any other questions at all. :)

                  • @eliteelectronics: Thanks for clarifying. Not sure it's legal to collect donations and claim them as 'yours' but that's a separate issue

    • +1

      Sounds like it would be a bad thing but if you make a $15 donation directly you only receive a benefit relative to your individual income tax rate. Tax deductions don't reduce your tax payable 1:1.

      Earn below $18,200 = Nil tax Benefit
      Earn $30,000 Taxed at 19c per $1 = $2.85 tax reduction
      Earn $80,000 Taxed at 32.5c per $1 = $4.88 tax reduction
      or
      Donate through EE and get $30 discount regardless of your taxable income.

      I haven't looked at their prices but if you were going to make a donation anyway this seems to be a solid option.

  • Hi there,
    The donation has to take place via our website in order for the $30 discount to apply to your purchase. You can simply click on the 'Donate' button on the right on our homepage, and the donation can be made via PayPal/credit card and will appear on your statement as as "Fundraising Program donation". We're not 100% certain whether this would be tax deductible unfortunately, though suspect that it could be.

    There are oodles of deals to be had across our site - feel free to browse and see if anything tickles your fancy! :)

    • +2

      Because you're getting a discount code, technically it disallows you from it being tax deductible.
      This could be avoided if technically all that's happening is a tracked donation and then a gift but with the donation going to your ABN I do believe it would be classified as a business transaction (your donation would be classified as buying the coupon rather then an actual donation).

      Source: I learnt all the rules for this when I was doing a contracting job for a company who used to sell coupons to make money for not-for-profit groups.

      • Thanks K1LL3R12, really appreciate your input as we weren't entirely certain ourselves.
        It may not be tax deductible by the sounds of it, though if you were already interested in making a purchase from us, or have suddenly realised that we stock any item/s that you're after, we feel the $30 discount and act of donation to this cause far outweigh the small forfeited tax deduction. :)

  • +1

    Is it tax deductible ?

  • Donated $15 :)

    • You bought a gift card at 50% discount. Donations are given without return consideration.

    • Thanks Coal, really appreciate your contribution and support. :)
      You should hopefully have received your $30 discount coupon via email at this stage - it's usually emailed through within 24 hours from when we receive your donation.
      Happy shopping! :)

  • +1

    We like to see prices. Bargains have prices. ® © ™

  • Just did a big order last week to Frankies and then notice this with better pricing too! I feel like I should make a donation out of spite.

  • Donated $15 what is the next step?

    • Hey DJSmokin,
      Thanks for your support, and apologies for the delay in our replying.
      Once you make a donation, we will email the discount coupon to you within 24 hours (to the email address used when making the donation). You should hopefully have received the email at this stage, though let us know if not and we'll get onto this for you. :)

  • +2

    Get people to spend money on your store while getting a good name for yourself in the pretense of charity and while also claim tax deduction from donation. Someone from marketing need a raise.

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