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Note: This document forms part of our guide Tax basics for non-profit organisations. The information has been updated with changes that have occurred since the publication was released in June 2011.
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Certain organisations are entitled to receive income tax-deductible gifts and tax-deductible contributions. They are called deductible gift recipients (DGRs).
What is a DGR?
The income tax law determines which organisations and types of organisations can qualify as DGRs. DGRs are either endorsed by us or listed by name in the income tax law.
All DGRs (except those listed by name) must be endorsed by us. If they are not endorsed, donors cannot claim income tax deductions for their gifts.
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You can check if an organisation is a DGR by:
- visiting the Australian Business Register (ABR) website at www.abr.gov.au
- phoning us on 13 28 61.
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DGRs listed by name
DGRs listed by name in the income tax law include organisations such as the Australian Sports Foundation and Amnesty International Australia. For an organisation to become a DGR listed by name, parliament must amend the income tax law to list the organisation by name in tax law.
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For more information refer to GiftPack (NAT 3132).
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Endorsed DGRs
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:
- registered health promotion charities
- school building funds
- registered public benevolent institutions
- overseas aid funds
- registered cultural and environmental organisations
- 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
- 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 meet all of the following requirements:
- fall within a general DGR category as set out in the income tax law
- have an Australian business number (ABN)
- have an appropriate dissolution/revocation of endorsement clause or clauses
- maintain a gift fund - if seeking endorsement for the operation of a fund, authority or institution
- be in Australia - with some exceptions.
Organisations that meet the requirements for endorsement can apply to us using an Application for endorsement as a deductible gift recipient (NAT 2948).
Maintaining DGR status
To maintain their endorsed status, most DGRs will need to do all of the following:
- include specific information on receipts
- self-review their entitlement to DGR endorsement
- continue to be in Australia - with some exceptions.
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For more information refer to GiftPack (NAT 3132).
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Last Modified: Friday, 1 July 2011