Endorsement process for income tax exempt funds

This fact sheet outlines the endorsement process for non-charitable funds to apply to us to access income tax exemption.

What is endorsement as an income tax exempt fund?

Endorsement as an income tax exempt fund (ITEF) is an approval process to access income tax exemption. It applies to non-charitable funds established under a will or instrument of trust solely for either:

• the purpose of providing money, property or benefits to income tax exempt deductible gift recipients (DGRs)
• the establishment of DGRs.

Non-charitable funds must be endorsed by us to be income tax exempt.

To work out if your fund is an ITEF, see What are the requirements for ITEF endorsement?

Endorsement of charitable funds Charitable funds access income tax exemption through endorsement as a tax concession charity. A charitable fund is a fund established solely for purposes that the law regards as charitable. Charitable purposes are: the relief of poverty the relief of the needs of the aged the relief of sickness or distress the advancement of religion the advancement of education the provision of child care services on a non-profit basis other purposes beneficial to the community. For more information about endorsement as a tax concession charity, refer to Endorsement to access charity tax concessions (NAT 3192).

What is a deductible gift recipient?

A deductible gift recipient (DGR) is an organisation that is entitled to receive income tax deductible gifts. All DGRs have to be endorsed by us, unless they are listed by name in the income tax law.

For more information about being endorsed as a DGR, refer to The endorsement process for deductible gift recipients (NAT 3193).