Deductible gift recipients (DGR)
To be tax deductible, the gift must be made to a deductible gift recipient (DGR), which means the organisation is entitled to receive tax-deductible gifts and tax-deductible contributions.
Unless an organisation is a DGR, the supporter cannot claim a tax deduction for their donation or contribution to it.
Charities can receive tax-deductible gifts provided the charity is a DGR. Some charities are not DGRs and, therefore, cannot receive tax deductible gifts.
The two ways your organisation can be a DGR are to either have DGR endorsement or to be listed by name in tax law.
Political parties are not DGRs, however donations made by an individual may be tax deductible
Most DGRs are endorsed by us. To be entitled to ATO endorsement, your organisation must meet several requirements, including falling within one of the general DGR categories described in the tax law. Examples are public hospitals, registered public benevolent institutions and school building funds.
Your organisation may be endorsed:
- as a whole – for example, a public hospital or a public university
- for the operation of a fund, authority or institution that it owns or includes – for example, a school that is endorsed for a school building fund.
If your organisation is endorsed as a whole, supporters may be able to claim deductions for their gifts and contributions. However, if you are an organisation endorsed for a fund, authority or institution it operates, your supporters' gifts and contributions are only tax deductible if they are for that particular part of the organisation.
Example 1 – Donating when only part of an organisation is endorsed
A local government council is endorsed as a DGR only for its library. Li donated $500 to the local government council library fund and could claim a tax deduction. Ibrahim donated $500 to the local government council neighbourhood program fund and could not claim a tax deduction.
Example 2 – Donating when only part of an organisation is endorsed
A school is endorsed as a DGR only for its school building fund. Jerry donated $2,000 to the school building fund, which was tax deductible. Olivia donated $2,000 to the school’s netball team, which was not tax deductible.
End of example
Supporters can check if an organisation is an endorsed DGR by:
- visiting abn.business.gov.auExternal Link – enter either the organisation's Australian business number (ABN) or name in the search box
- The current ABN details are displayed if only one record matches your search criteria. Scroll down to 'Deductible gift recipient', if the organisation is a DGR, information about its current DGR status is recorded here.
- A 'Search results' list is displayed if more than one record matches your search criteria. Select the organisation's ABN to access its current ABN details and scroll down to 'Deductible gift recipients'. If the organisation is a DGR, information about its current DGR status is recorded here.
- phoning us on 13 28 61.
Supporters can download a complete list of endorsed DGRs from the ABN Lookup website Deductible gift recipientsExternal Link. Two lists are available – entities that are:
- DGR endorsed in their own right
- DGRs in relation to the operation of a fund, authority or institution.
The lists are updated daily.
Deductible gift recipient (DGR) endorsement
Listed by name in law
If your organisation does not fall in a general DGR category, parliament can amend the tax law to list your individual organisation by name as a DGR.
Examples are Amnesty International Australia and the Australian Sports Foundation.
DGRs listed by name are sorted into groups in the income tax law and are listed in a table for each group:
Donors and contributors can check announcements for organisations the government has announced it intends to allow tax deductibility for gifts, but are pending listing, by name under legislation.
To claim a tax deduction, the gift or contribution must be made to a deductible gift recipient (DGR). The two ways your organisation can be a DGR are to either have DGR endorsement or to be listed by name in tax law.