Gift funds - frequently asked questions

Who is required to maintain a gift fund?

Organisations that are endorsed, or seeking to be endorsed, by the Australian Taxation Office (ATO) as a deductible gift recipient (DGR) for the operation of a fund, authority or institution must maintain a gift fund. Examples include schools endorsed for the operation of a school building fund and local councils endorsed for the operation of a public library.

An exception is where an organisation is seeking DGR endorsement for a fund, authority or institution that it operates and the organisation is already endorsed as a DGR as a whole.

From 12 April 2007, organisations that are endorsed, or seeking to be endorsed, as DGRs as a whole are not required to maintain a gift fund. However, these organisations may choose to maintain a gift fund.

Organisations that are listed by name as DGRs in the tax law are not required to maintain a gift fund. These organisations are set out in our fact sheet Deductible gift recipients listed by name in the tax law (NAT 8443).

Sections within Gift fund

• Who is required to maintain a gift fund?
• What is a DGR?
• What is a gift fund?
• Is a gift fund maintained for an organisation or part of an organisation?
• What is a fund?