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Straight answers on giving in Malaysia
Tax relief, receipts, e-Invoices, PDPA and fundraising rules — researched from LHDN, SSM, ROS and other primary sources, and re-checked on a schedule.
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What must be on a valid donation receipt in Malaysia? A checklist for NPOs
What makes a receipt valid for a donor's tax deduction is that (1) your organisation holds current approval from LHDN under subsection 44(6) of the Income Tax Act 1967 for the fund the donation went to, and (2) the receipt itself carries what LHDN's own current guideline requires of every approved organisation, plus anything extra your specific approval letter adds. That guideline, dated 23 October 2025, publishes a general receipt checklist — organisation details, a unique preprinted serial number, the donor's full particulars, the amount and date, the collector's position, and a fixed reference to your approval — which this article walks through in full below [1][2]. A donation to an organisation without 44(6) (or an equivalent) approval, or to a fund your approval doesn't cover, cannot be issued as tax-deductible at all — you can still give the donor an ordinary receipt as proof of payment, just not one that lets them claim a deduction.
Do we need an e-Invoice for a donation, or is our LHDN receipt still enough?
It depends on what kind of organisation you are, on your annual turnover, and the answer has changed twice in the last year. If you are a religious institution or organisation set up exclusively for worship or advancing religion, LHDN's own rules currently exempt you from issuing e-Invoices for donations you receive [1] — your existing receipt can carry on unchanged. If your organisation also holds LHDN tax-exempt approval for a separate charity or community project, or you are a non-religious NPO with that approval, this donation-specific exemption does not apply to you [1] — but a separate, general exemption may still cover you: taxpayers of every kind with annual turnover or revenue under RM3,000,000 are currently exempt from e-Invoicing altogether, donations included [2]. Whether that covers your organisation depends on your own turnover, not on your s44(6) or 34(6)(h) status — see "The general small-taxpayer exemption" below.
What is s44(6) approval, and how does our NPO get it?
Subsection 44(6) approval is a status the Director General of Inland Revenue (DGIR/KPHDN) grants, by application, to a non-profit institution, organisation or fund. It does two things: it exempts your own income from tax, and it lets your donors deduct their gifts (up to 10% of aggregate income). Approval is not automatic or permanent — it runs for a fixed period (up to five years), comes with conditions you must keep meeting, and needs reapplying before it expires. Whether you currently hold it is written on your KPHDN approval letter, not assumed from being registered or being "obviously" a charity.
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Tax & Receipts
What must be on a valid donation receipt in Malaysia? A checklist for NPOs
What makes a receipt valid for a donor's tax deduction is that (1) your organisation holds current approval from LHDN under subsection 44(6) of the Income Tax Act 1967 for the fund the donation went to, and (2) the…
Do we need an e-Invoice for a donation, or is our LHDN receipt still enough?
It depends on what kind of organisation you are, on your annual turnover, and the answer has changed twice in the last year.
What is s44(6) approval, and how does our NPO get it?
Subsection 44(6) approval is a status the Director General of Inland Revenue (DGIR/KPHDN) grants, by application, to a non-profit institution, organisation or fund.
How much can our donors deduct? What to tell donors about tax relief on their gifts
A donor who gives cash to your organisation can deduct the gift from their taxable income — not get it refunded — and only if your organisation is approved by LHDN under subsection 44(6) of the Income Tax Act 1967.
Non-cash donations: can we issue a tax receipt for rice, equipment or a donated car?
Under Malaysian tax law, the general rule for a tax-deductible donation receipt is that it must be a gift of money.
Memorial tablets, lamps and ritual registrations: donation or sale? What it means for receipts and e-Invoices
A payment only counts as a "gift" eligible for a tax-deductible receipt under subsection 44(6) if the giver receives nothing specific back for it.
Registration & Governance
Annual filing for Malaysian NPOs: every deadline in one calendar (society and CLBG)
What you file, and by when, depends on whether you're a society or a company limited by guarantee (CLBG).
Society, company limited by guarantee or incorporated trustees: which structure fits your NPO?
Malaysia has three main ways to give an NPO a legal identity: register as a society with the Registrar of Societies (ROS) under the Societies Act 1966, incorporate a company limited by guarantee (CLBG) with the…
Fundraising Rules
Fundraising in Malaysia: the rules that actually apply to your NPO (2026 guide)
Malaysia has no single "fundraising licence". What applies to your organisation depends on four things: how you are registered (a society, a company limited by guarantee or an incorporated trustee), whether LHDN has…
Malaysia's Social Exchange Platform (SEP) explained: what it asks of your NPO, and when your own donation site is the better route
The Social Exchange Platform (SEP) is a new, optional fundraising channel regulated by the Securities Commission Malaysia (SC).
Donor Data & Privacy
Should we ask donors for their IC number? When it's needed, and how to protect it
Usually only if the donor wants something from it, with one hard floor.
The PDPA 2024 amendments: what changed, and what it means for an NPO holding donor data
Yes, the Personal Data Protection Act 2010 was amended in 2024, now fully in force across three stages between January and June 2025.
Can we email our donors? PDPA rules on donor newsletters, consent and unsubscribes
Probably yes, but with real conditions attached. The Personal Data Protection Act 2010 (PDPA) applies, by its own wording, to personal data processed "in respect of commercial transactions" — and whether an NPO's donor…
Payments
Monthly giving in Malaysia: how recurring donations actually work (and why they matter)
" FPX is a one-time online banking payment — it cannot repeat itself.
FPX, DuitNow QR, cards or e-wallets: which online donation methods should your NPO accept?
For most Malaysian NPOs, FPX (online banking) and DuitNow QR cover the widest range of donors at the lowest cost, cards are worth adding mainly because they're the only way to offer recurring giving, and e-wallets add…
Opening a payment gateway for your NPO: what they'll ask for, and why
A Malaysian payment gateway is not being difficult when it asks for your constitution, registration certificate and committee members' IC copies — it is required to.
Accounting & Reporting
Getting donation income ready for the AGM and the auditor
What your organisation must show at the AGM, and to an auditor, depends on how you are registered.
How long must our NPO keep donation records — and what can we throw away?
For tax purposes, keep your donation and financial records for 7 years — that duty comes from the Income Tax Act 1967, and it applies to your organisation whether or not you're a company.
Month-end for donation income: a reconciliation routine your treasurer can actually keep
No law tells you to close your books every month — but the Societies Act and the Companies Act both expect accounts that "sufficiently explain" your transactions, and you can't produce that at year-end if January's…
Restricted vs unrestricted donations: keeping earmarked money where donors meant it
Malaysia has no accounting standard written for NPOs, and "restricted" and "unrestricted" funds are not Malaysian legal terms — they're borrowed from foreign charity-accounting practice.
Fundraising Practice
Why the second gift matters more than the first: donor retention for Malaysian NPOs
Yes, it's normal — and the numbers say it's actually the sector norm, not something your organisation is doing unusually badly.
Telling donors what their money did: a practical guide to impact reporting for small NPOs
Report in four moments, not one: a thank-you when the gift lands, a short progress update partway through, a completion report when the campaign or project ends, and an annual summary once a year.
Planning a year-end giving campaign in Malaysia: timing, tax receipts and the January rush
Malaysia's tax year for an individual is the calendar year, and a donation counts toward a deduction only for the year it was actually made — so a gift that lands on 1 January, or a transfer that only clears in the new…
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