Grants
If your organisation or business is registered for GST, or is required to be, and receives grant funding (e.g., from a government body or private foundation), you do not have to pay GST on the funding payment unless you make a supply in return for the payment.
For more information, see:
Sponsorship
If your organisation or business is registered for GST, or is required to be, and enters a sponsorship arrangement, you may be obligated to pay GST.
When undertaking fundraising events, you often receive support or sponsorship in the form of money.
In return for the sponsorship payment, your organisation or business may provide advertising, signage, naming rights or other types of benefits. This means that the sponsor receives something of value in return for the sponsorship, so the sponsorship payment is consideration for the supply of the benefit and is not a gift.
If your organisation or business is registered for GST, you must pay GST on the supply of the benefit you provide in return for the sponsorship you receive. As the benefit provided is a taxable sale you must include it in your BAS. Sponsors may also be able to claim GST credits.
If your organisation or business is not registered for GST but receives a sponsorship payment for which you provide a benefit, it must be included in your GST turnover calculation.
Check how to apply GST when supplying a benefit in return for a grant or sponsorship money.