How GST Works on Fundraising in New Zealand

If you're running a fundraiser in New Zealand and wondering whether GST applies, here's the direct answer: GST only applies if your organisation is GST-registered and the income counts as a taxable supply — and for most community groups, schools, and PTAs that aren't registered, GST doesn't apply to donations or one-off fundraising sales. Donations are almost never subject to GST, and if your total taxable supplies stay under the $60,000 annual threshold, you generally don't need to register at all. This guide walks through the rules in plain language, with practical examples relevant to Aotearoa.

GST (Goods and Services Tax) is a 15% tax added to most goods and services sold in New Zealand. How it affects your fundraiser depends on your legal structure, whether you're registered for GST, and the type of income you're receiving. For specific advice about your situation, always check the current guidance on the IRD website or talk to an accountant.

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Donations vs sales: the core distinction

The most important concept in GST for fundraisers is the difference between donations and sales.

Donations are voluntary gifts where the donor receives nothing in return. For example, someone gives $100 to your school's music department and gets no goods or services back. Donations generally don't attract GST, even if you're GST-registered, because they aren't a "supply" in GST terms. The same applies to grants and subsidies from government agencies.

Sales of goods or services — like selling sausages at a fundraiser, selling raffle tickets, selling merchandise, or selling digital vouchers — are supplies. If you're GST-registered, these sales are likely subject to GST. If you're not GST-registered, you don't charge GST on your sales, but you also can't claim GST credits on your expenses.

Sponsorship sits in a grey area. If a local business gives you $500 and receives nothing in return, that's a donation. But if they receive advertising, logo placement on shirts, or recognition at an event, Inland Revenue may treat it as payment for a supply — which changes the GST treatment. If your organisation is GST-registered, sponsorship that includes promotional benefits may need GST charged on it.

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Who needs to be GST-registered?

Most schools, PTAs, sports clubs, and community organisations in New Zealand are not GST-registered because their annual taxable supplies fall below the $60,000 threshold. If you're not registered, you don't need to worry about charging GST or filing GST returns for your fundraiser.

However, there are situations where registration is required or worth considering:

• Your organisation's total taxable supplies exceed $60,000 in a 12-month period
• You're running regular, ongoing fundraising activities that look like a business
• Your organisation is structured as a company or trust that already handles GST
• You're a registered charity that also runs significant trading activities

Even if you're not registered, it's worth tracking your income carefully. If you have a big year — say, a major building project fundraiser or a large-scale voucher campaign — you could cross the threshold and need to register. If that happens, you'd need to start charging GST on your taxable supplies from the registration date.

One common misconception: donations don't count toward the $60,000 threshold. Only taxable supplies — sales of goods and services — count. This means a school that raises $80,000 through donations but only sells $10,000 worth of goods at a gala is still under the threshold.

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Selling items: when GST applies

If your school or group is GST-registered, selling items at a gala, market day, or online fundraiser is a taxable activity. You'd need to:

1. Add 15% GST to the selling price (or treat the price as GST-inclusive)
2. Include these sales in your GST return
3. Claim GST credits on related expenses like ingredients, prizes, or printing

For example, if your PTA sells baking at $5 per plate and is GST-registered, $0.65 of that $5 is GST that must be passed on to Inland Revenue. If the price is GST-inclusive, you'd need to account for the GST portion using the standard calculation (price ÷ 1.15 × 0.15).

If you're not GST-registered, you simply keep the full sale price. No GST to worry about, but no GST credits either. This is why many small community groups prefer to stay unregistered — the administrative simplicity outweighs the benefit of claiming credits on relatively small expenses.

Common fundraising sales scenarios

Sausage sizzles and bake sales: These are straightforward taxable supplies if you're registered. If not, no GST applies.

School gala stalls: Sales of goods at a gala are taxable supplies. If your school is GST-registered, GST applies to all sales. If not, the full amount goes to the school.

Merchandise like hoodies or calendars: These count as taxable supplies. If you're registered, you need to charge GST on the selling price.

Second-hand goods: There are special rules for second-hand goods, but for most community fundraisers selling donated items, the standard rules apply based on your registration status.

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Digital vouchers and fundraising platforms

Digital vouchers have become a popular fundraising method in New Zealand because they let you partner with local businesses and earn a commission on sales. When you sell vouchers through a platform like Generous.nz, the GST treatment depends on who's registered.

If you're not GST-registered, the commission or fundraising margin you earn from voucher sales is simply income. You don't charge GST on it. This is one reason voucher fundraising is attractive for schools and community groups — it's a low-friction way to raise funds without GST complications.

If you are GST-registered, the voucher sale may be treated as a supply, and you'd need to account for GST on your commission or margin. The platform's fee structure matters here. Generous.nz charges a 5% + GST fee that's invoiced separately — it's never deducted from donations or sales. This invoiced model keeps things clearer for GST purposes because you receive a proper tax invoice for the service.

For a deeper look at how voucher fundraising works, check out our guide on why vouchers are a highly effective fundraising product and our complete guide to selling digital vouchers.

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Raffles and games of chance

Raffles have their own rules in New Zealand beyond GST. Under the Gambling Act 2003, most community raffles require a licence from the Department of Internal Affairs, though there are class exemptions for low-value prizes.

For GST purposes, raffle ticket sales are generally treated as taxable supplies if you're GST-registered. If you're not registered, ticket sales don't attract GST. However, there are specific rules about how prize value affects the treatment, and the licensing requirements are separate from GST.

One important note: the Gambling Act rules about how much of your raffle proceeds must go to the authorised purpose are separate from GST obligations. You need to comply with both. Our guide on how to legally run a raffle in New Zealand covers the licensing side in detail, but for GST questions on raffles, you'll want to check the IRD's specific guidance.

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What about platform fees and GST?

When you use a platform like Generous.nz, you'll pay fees for the service. For GST-registered organisations, these fees are generally an expense you can claim GST credits on, provided you have a valid tax invoice.

If you're not GST-registered, the fees are simply a cost of fundraising — no GST credit available.

Generous.nz uses an invoiced fee model rather than deducting fees from your donations. This means:

• You receive a clear invoice for platform services, typically 5% + GST
• The fee is invoiced separately and never taken from donations
• Fundraisers keep at least 10% of voucher sales
• The first $1,000 of wholesale sales is fee-free

This makes it easier to track expenses and understand exactly what you're paying for. Our article on what it really costs to fundraise breaks down the fee structure in plain terms.

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Key thresholds and numbers to remember

Here's a quick summary of the numbers that matter:

Scenario	GST applies?
Donations (no return to donor)	No
Sales by non-registered group	No GST charged, no credits claimed
Sales by GST-registered group	Yes, 15% GST on sales
Taxable supplies over $60,000/year	Registration required
Raffle tickets (non-registered)	No GST
Platform fees (non-registered)	No GST credit available
Platform fees (registered)	GST credit claimable with tax invoice

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Practical tips for your fundraiser

Keep clean records. Even if you're not GST-registered, track all income and expenses. If you ever cross the registration threshold, you'll need this history. Use a simple spreadsheet or accounting software to log every transaction.

Separate donations from sales. Use different accounts or line items so you can easily distinguish between voluntary donations and payments for goods or services. This makes GST calculations much simpler if you ever need to register.

Check with your accountant. If your organisation is a charity, incorporated society, or trust, there may be specific rules that apply. A quick conversation with an accountant can save you headaches later.

Review your pricing. If you're GST-registered, decide whether your prices are GST-inclusive or exclusive. Most community fundraisers include GST in the price to keep things simple for customers.

Understand donation tax credits. Donors may be able to claim a tax credit on their donations to registered charities. This doesn't affect your GST obligations, but it's worth knowing so you can tell donors. Our guide on donation tax credits in New Zealand explains this in more detail.

Plan your fundraising calendar. The time of year can affect how much you raise and whether you might approach the registration threshold. Our guide on the best times of year to launch a fundraiser in New Zealand can help you plan.

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When to get professional advice

This article is general information, not tax advice. If your fundraiser is large, ongoing, or involves significant amounts of money, it's worth getting professional guidance. The IRD website has comprehensive resources on GST for non-profits and community groups, and their helpline can answer specific questions about your situation.

For most school fundraisers, sports clubs, and community groups running occasional events, GST isn't a major concern. You're likely under the threshold and not registered, so sales simply add to your fundraising total without GST complications.

The key is knowing where you stand. Check your annual income, understand your registration status, and keep good records. That way, when fundraising season arrives — whether it's AIMS Games time, Christmas giving, or a school gala — you can focus on raising money, not worrying about tax.

For more fundraising guidance, explore our blog on fundraising ideas in New Zealand and our school fundraising ideas.

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Frequently asked questions

Does my school need to be GST-registered to run a fundraiser?

No. Most schools and PTAs are not GST-registered because their taxable supplies fall below the $60,000 annual threshold. You only need to register if your organisation's taxable supplies exceed this amount in a 12-month period. Donations don't count toward this threshold — only sales of goods and services do.

Do donations count towards the $60,000 GST threshold?

No, donations are not taxable supplies, so they don't count toward the GST registration threshold. Only sales of goods and services count — things like sausage sizzles, raffle tickets, merchandise, and voucher commissions. This means many organisations that raise significant amounts through donations remain under the threshold.

If we're not GST-registered, do we charge GST on raffle tickets?

No. If you're not GST-registered, you don't charge GST on any sales, including raffle tickets. You just keep the full amount raised. However, you still need to comply with the Gambling Act licensing rules for raffles, which are separate from GST obligations.

Can we claim GST back on fundraiser expenses if we're not registered?

No. Only GST-registered businesses and organisations can claim GST credits on their expenses. If you're not registered, the GST you pay on supplies is simply part of your costs. This is one reason some larger community organisations choose to register voluntarily even if they're under the threshold.

How does Generous.nz handle GST on its fees?

Generous.nz operates an invoiced fee model, which means you receive a clear invoice for platform services — typically 5% + GST, invoiced separately and never taken from donations. If your organisation is GST-registered, you may be able to claim GST credits on these fees. Check the invoice and your accountant for specifics, and see our guide on fundraising fees explained for more detail.