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A deductible gift recipient (DGR) is an organisation with a tax status that allows donors to make tax deductible gifts of over $2 to the organisation. As a result of the introduction of the Treasury Laws Amendment (2021 Measures No. 2) Act 2021 (Cth), from 14 December 2021 all non-government organisations with DGR status are required to be registered as a charity with the Australian Charities and Not-for-profits Commission (ACNC).

Whilst the requirement for DGRs to be registered as a charity has existed for the majority of DGR categories, these recent changes now extend this requirement to the remaining general DGR categories (other than ancillary funds or DGRs which are specifically listed in tax law).

 Organisations with DGR status that are already registered as a charity:

If your organisation with DGR status is already registered as a charity with the ACNC then no further action is required other than continuing to meet the obligations associated within maintaining charitable status and DGR endorsement.

Organisations with DGR status that are not registered as a charity:

If your organisation with DGR status is not registered as a charity, then to maintain DGR status you will need to apply to the ACNC for charitable status.

Transitional period

There are transitional arrangements which provide additional time to meet these new requirements. These are:

  1. a 12-month transition period which allows organisations until 14 December 2022 to become a registered charity; and
  2. an additional 3-year extension which can be granted by the ATO in certain circumstances.

All non-government DGRs will have until 14 December 2022 to become a registered charity provided your organisation applied for or was endorsed under one of the updated general DGR categories before 14 December 2021.

Any DGRs who do not receive charitable status by 14 December 2022, will lose their DGR status unless they have obtained the additional 3-year extension. The ATO will consider (amongst other factors) the following in determining whether a further 3-year extension will be granted:

  • Has the organisation applied to the ATO for a 3-year extension before 14 December 2022?
  • Has the organisation made material changes to its purpose or activities that affect ongoing entitlement to DGR endorsement?
  • Has the organisation previously had charity registration refused or involuntarily revoked by the ACNC?

To check your organisations eligibility for the transitional periods, please go to the following link.

Applications for DGR endorsement made after 14 December 2021:

Any non-government organisations who apply for DGR endorsement after 14 December 2021 must register as a charity before the ATO will consider DGR endorsement.

For further information on any of the above or for assistance with establishing a charitable entity please contact our office.