From December you need to be a charity to get (and keep) deductible gift recipient status
From 14 December this year, all entities with deductible gift recipient status (DGR status) must be registered charities, government agencies or must be operated by a registered charity or government agency.
What is DGR?
DGR status is a form of endorsement from the ATO and means any donation over $2 is deductible from the donor’s income tax, so it is highly sought after by organisations that rely on donations.
What does this mean if I want DGR status?
Generally, to obtain DGR status your organisation needs to fall into one of the general DGR categories in the tax law or be specifically listed by the treasury in the tax law as a DGR. There are around 50 DGR endorsement categories and eligibility is based on the entity’s purpose or the purpose of a fund, authority or institution it operates.
For some categories, charity status was already required but now obtaining charity status with the Australia Charities and Not-For-Profits Commission (ACNC) is a precondition to all general DGR categories.
Even if you have a current DGR application on foot, you will still need to apply for charity status with the ACNC.
What does this mean if I already have DGR status?
If you are endorsed in one of the general DGR categories you will need to apply for charity status. This includes determining your charitable purpose and subtype and may require you to update your governing documents to comply with ACNC requirements.
From 14 December 2021, organisations have 12 months to obtain DGR status or risk losing DGR endorsement. In limited circumstances additional 3 year extensions can be applied for.
If you are already a registered charity, you don’t need to take any further steps.
