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  • What are the consequences of DGR endorsement?

    Gift deductibility

    Your fund will be entitled to receive income tax deductible gifts from the date its DGR endorsement starts and while it is endorsed. Deductions for gifts to a DGR are claimed by the person or organisation that makes the gift (the donor).

    Australian Business Register

    The Australian Business Register (ABR) website will record that your organisation is a DGR.

    Receipts

    When your fund issues a receipt for a tax deductible gift, it must include certain information on the receipt. If your fund does not include this information on its receipts, your endorsement may be revoked.

    Self-review

    You must notify us in writing if your fund's circumstances change and it stops being entitled to DGR endorsement. This obligation means you will need to carry out regular reviews of your fund's status. The law does not require any particular intervals between reviews, but we recommend a yearly review.

    Trustees and directors of trustees of public AFs may be liable for administrative penalties if they represent a public AF as being entitled to remain endorsed as a DGR and the fund is not entitled.

    Record keeping

    As a DGR, your fund must keep adequate accounting and other records that detail and explain all transactions that are relevant to its status as a DGR. You must maintain these records for at least five years after the completion of the transactions or acts they relate to. The penalty for not keeping proper records is 10 penalty units.

    See also:

    • Penalties

    Annual returns

    The trustee may be asked to provide us with a return form for each financial year.

      Last modified: 12 Oct 2016QC 25252