DGRs required to be a registered charity
All general DGR categories are now required to be registered as a charity. Transitional periods may apply.
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Summary of changes
Legislation amended in September 2021 requires non-government deductible gift recipients (DGRs) to be a registered charity from 14 December 2021.
Charity registration is an existing requirement for the majority of general DGR categories. The amendment extends this requirement to the remaining DGR categories, except for ancillary funds or DGRs that are specifically listed in tax law.
These changes form part of the Deductible gift recipient reform announced by the government in December 2017. They are designed to improve the consistency of regulation, governance and oversight of DGRs in order to uphold community confidence and trust in the sector.
DGRs that were already endorsed on 14 December 2021, as well as certain applicants with a DGR application pending, were eligible for transitional arrangements. Transitional arrangements provided additional time to meet the new requirements and included:
- automatic 12-month general transition period, giving DGRs until 14 December 2022 to become a registered charity
- additional 3-year extension in limited circumstances – this application period has now closed.
Requirements for DGR endorsement
From 14 December 2021, a requirement for DGR endorsement is that a fund, authority or institution must be one of the following:
The requirement to be a registered charity or an Australian government agency does not apply for ancillary funds or DGRs specifically listed by name in tax law. See DGR categories.
Amended DGR categories
Most general DGR categories are required to be a registered charity or an Australian government agency. Amendments passed into law in 2021 extends this requirement to an additional eleven general DGR categories.
Check your organisation meets the requirement
DGRs that were endorsed under one of the updated general DGR categories before 14 December 2021, need to check they meet the new requirement for endorsement.
No further action is required if your DGR either:
If your DGR is not one of the above, your organisation needs to register as a charity with the Australian Charities and Not-for-profits Commission (ACNC).
Other changes affecting your endorsement
If your organisation has changed its main purpose, activities or governing documents you may no longer be entitled to DGR endorsement.
Check your organisation's continued eligibility to be endorsed as a DGR, by completing a review of your DGR endorsement. If no longer entitled, you need to notify us DGR endorsement is no longer required.
Updated general DGR categories
From 14 December 2021, the following updated general DGR categories require non-government organisations to be registered as a charity:
- public fund for hospitals
- public fund for public ambulance services
- public fund for religious instruction in government schools
- Roman Catholic public fund for religious instruction in government schools
- school building fund
- public fund for rural school hostel building
- approved research institute
- public fund for persons in necessitous circumstances
- fire and emergency services fund
- public fund on the Register of Environmental OrganisationsExternal Link (REO)
- public fund on the Register of Cultural OrganisationsExternal Link (ROCO).
Transitional arrangements
DGR endorsement requirements apply from 14 December 2021.
DGRs that were already endorsed on 14 December 2021, as well as certain applicants with a DGR application pending, were eligible for transitional arrangements. Transitional arrangements provided additional time to meet the new requirements and included:
- automatic 12-month general transition period, giving DGRs until 14 December 2022 to become a registered charity
- additional 3-year extension in limited circumstances.
Three-year extension
Eligible organisations had to apply for a 3-year extension before 14 December 2022 if they needed more time. If approved, organisations have up to 14 December 2025 to meet the new eligibility requirements for DGR endorsement.
The defined criteria used to assess the 3-year extension is outlined in the DGR (extended application date) legislative instrumentExternal Link.
To be eligible your organisation must have:
- applied for a 3-year extension before 14 December 2022
- not made material changes to its purpose or activities that affect ongoing entitlement to DGR endorsement
- not had a previous charity registration refused or involuntarily revoked by the ACNC.
Consideration will also be given to whether your organisation:
- is likely to be eligible for charity registration with the ACNC
- has applied for charity registration with the ACNC
- has taken reasonable steps toward satisfying the requirements for charity registration, including giving information or a document required by the ACNC Commissioner
- is restructuring and needs more time to distribute remaining assets and income to a DGR with similar purposes
Eligibility for transitional periods
Eligibility for transitional periods was based on the DGR category or application date:
If your category isn’t listed here and you have any questions, phone us on 1300 130 248 between 8:00 am and 6:00 pm, Monday to Friday.
Environmental or cultural organisations
All existing non-government DGRs listed on the Register of Environmental Organisations (REO) and the Register of Cultural Organisations (ROCO) on 14 December 2021:
- were automatically provided with a 12-month general transition period (no application required)
- had until 14 December 2022 to become a registered charity or apply to us for a 3-year extension for more time.
Applications to REO and ROCO before 14 December 2021
Applications not approved by the relevant ministers before 14 December 2021 were not eligible for the 12-month general transition period, or the 3-year extension period.
If you have a specific question about applications to REO and ROCO contact:
- Register of Environmental Organisations at REO@dcceew.gov.au
- Register of Cultural Organisations by email to roco.mail@arts.gov.au or phone (02) 6271 7108.
Other updated general DGR categories
If your non-government organisation applied for, or was endorsed under, one of the updated general DGR categories before 14 December 2021 you:
- were automatically provided a 12-month general transition period (no application is required)
- had until 14 December 2022 to become a registered charity
- had to apply for a 3-year extension before 14 December 2022 for, for more time to meet the requirements.
If your organisation is listed on the Register of Environmental Organisations (REO) or Register of Cultural Organisation (ROCO), see Environmental or cultural organisations.
Applications for DGR endorsement made after 14 December 2021
Non-government organisations that submit an application for DGR endorsement after 14 December 2021 must register as a charity before:
- we will consider DGR endorsement
- an application for listing on the ROCO or REO is progressed.
Registering as a charity
Before applying to be registered as a charity, refer to the ACNC website for:
To apply to have your NFP registeredExternal Link as a charity, you need to log in to the ACNC Charity Portal and complete the application.
As part of your application, you will need to provide copies of your governing documents in either a Word or PDF file format. Image files may cause issues and may delay your application.
Notify us if DGR endorsement is no longer required
If your organisation is no longer eligible for DGR endorsement or it no longer requires it, you need to notify us. Complete and submit the Not-for-profit advice request (PDF, 121KB)This link will download a file form to ask us to cancel your DGR endorsement.
The from must be completed by an authorised contact on the account and must specify the date of cancellation.
We will contact you to discuss the request and issue you a written notice with the date that your DGR endorsement has been cancelled.
After DGR cancellation, your organisation will:
- not be entitled to receive tax-deductible donations or gifts
- be required to remove tax-deductible status from your organisation's website or other materials
- need to arrange for surplus income or assets to be distributed to another eligible DGR.
When we revoke DGR status
To maintain your DGR endorsement, affected entities were required to register as a charity or be operated by a registered charity or an Australian government agency before 14 December 2022.
If you did not register as a charity within the transitional period applicable to your DGR, or were not granted a 3-year extension, your endorsement will be revoked. If revoked, your organisation is:
- no longer entitled to receive tax-deductible donations or gifts
- required to remove tax-deductible status from their website or other materials
- required to distribute surplus gifts and donations to an eligible DGR.
We will write to you to inform you of the date your DGR endorsement is revoked. If you are dissatisfied with our decision, you can lodge an objection. For more information refer to Review your DGR endorsement.
Next steps
Watch our recording of the Changes to Deductible Gift Recipient eligibilityThis link opens in a new window webinar. You can also download a copy of the webinar slides.
If you have any questions about DGR endorsement or your extension application, phone us on 1300 130 248 between 8:00 am and 6:00 pm, Monday to Friday.
Start a charityExternal Link on the ACNC website also has useful information.
All general DGR categories are now required to be registered as a charity. Transitional periods may apply.