Fundraising - Tax basics for non-profit organisations
Note: This document forms part of our publication Tax basics for non-profit organisations. To view the full publication, click here. The information in this document has been updated for changes that have occurred since the publication was released in June 2007.
Certain organisations are entitled to receive income tax deductible gifts and tax deductible contributions. They are called deductible gift recipients (DGRs).
What is a deductible gift recipient?
The income tax law determines which organisations and types of organisations can qualify as DGRs. DGRs are:
endorsed by the Tax Office, or
listed by name.
All DGRs (except those listed by name) must be endorsed by the Tax Office. If they are not endorsed, donors cannot claim income tax deductions for their gifts.
You can check if an organisation is a DGR by:
visiting the Australian Business Register website at www.abr.gov.au or
phoning the Tax Office on 13 28 61.
DGRs listed by name
DGRs listed by name include prescribed private funds and organisations such as the Australian Sports Foundation and Amnesty International Australia. There are two ways organisations can become DGRs listed by name. For prescribed private funds, the government gazettes them into the income tax regulations. For others, Parliament amends the income tax law to list the organisation by name in the income tax law.
For other organisations to be DGRs, they must fall within a general DGR category set out in the income tax law. Examples of the general categories include:
health promotion charities
school building funds
public benevolent institutions
overseas aid funds
registered cultural and environmental organisations, and
public libraries, museums and art galleries.
What are the types of DGR endorsement?
There are two types of endorsement:
where an organisation as a whole is endorsed as a DGR, and
where an organisation is endorsed as a DGR for the operation of a fund, authority or institution that it owns or includes.
If an organisation is endorsed as a whole, gifts to the entire organisation may be tax deductible. If an organisation is endorsed for the operation of a fund, authority or institution, only gifts to this part of the organisation may be tax deductible.
Is your organisation entitled to DGR endorsement?
To be entitled to DGR endorsement, your organisation must:
fall within a general DGR category as set out in the tax law
have an Australian business number
have an appropriate dissolution/revocation of endorsement clause(s)
maintain a gift fund (if seeking endorsement for the operation of a fund, authority or institution), and
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