• Proving eligibility for supplier discounts

    Suppliers of goods or services who offer discounts to not-for-profit (NFP) organisations often ask them to provide information to support their claim to the discount. Suppliers often ask for a statement from us to prove a claim. This may result in unnecessary contact with us as most clubs, societies and associations can self-assess (that is, work out for themselves) their income tax status. They do not receive confirmation of their status from us and need other documents to show their status or purposes.

    However, we do send written notices to the following endorsed organisations to confirm their endorsement details:

    • tax concession charities (TCC)
    • deductible gift recipients (DGR).

    TCC endorsement notices

    Charities apply to us to access charity tax concessions under the income tax, the goods and services tax (GST) and fringe benefits tax (FBT) laws.

    An organisation that has been endorsed as a TCC receives a written notice of its endorsement from us. Details on the endorsement notice include:

    • the organisation's name
    • its Australian business number
    • the organisation's entity type
      • charity
      • public benevolent institution
      • health promotion charity
       
    • the tax concessions the organisation has been endorsed to access
      • income tax exemption
      • GST charity concessions, and/or
      • FBT rebate or FBT exemption
       
    • the date of effect for each endorsement.

    You can find the above information on the Australian Business RegisterExternal Link.

    Charities include most NFP religious institutions, educational institutions, aged persons homes, homeless hostels, and organisations relieving the special needs of people with disabilities and societies that promote the fine arts. Other examples of charities can be found in Is your organisation a charity?

    Clubs, societies and associations that can self-assess their entitlement to tax concessions (such as exemption from paying income tax) do not receive a notice of endorsement as a TCC.

    Non-profit organisations that can self-assess their income tax status are not required to obtain confirmation of their income tax status from us.

    Examples of organisations that can self-assess their income tax status include social clubs, ethnic cultural associations, cinema clubs, friendship clubs, wine societies, fan clubs, rowing clubs, football clubs, dancing clubs, athletic clubs, model train societies, boating and fishing clubs, boxing clubs, golf clubs, car clubs, motor racing clubs, most business and professional associations, and community service organisations such as Apex, Lions etc.

    See also:

    DGR endorsement notices

    Organisations that wish to receive income tax deductible gifts (except those listed by name in the income tax law) must be endorsed by us as deductible gift recipients (DGRs).

    An organisation that is endorsed by us as a DGR will receive a written notice of its endorsement from us. Details on the DGR endorsement notice include:

    • the DGR's name
    • its Australian business number
    • the name of the fund, authority or institution operated by the DGR to which the endorsement relates (if applicable)
    • the endorsement date of effect
    • the relevant DGR category and item number in the income tax law.

    You can find out if an organisation has been endorsed as a DGR, together with the date or period of effect of endorsement, on the Australian Business RegisterExternal Link.

    Examples of DGR categories include public benevolent institutions, public universities, public hospitals, school building funds, public libraries and funds on the register of cultural organisations or register of environmental organisations.

    Other documents

    Other indicators of your organisation's NFP status or particular community purposes are your organisation's:

    • constitution or governing rules
    • trust deed (if it is a trust)
    • registration or association with other regulatory bodies that require not-for-profit status and/or the particular community purpose for registration.

    This list is provided to help organisations that do not receive endorsement notices. As it is the supplier who is offering the discount, the supplier will ultimately decide how it applies its discount policy.

    Last modified: 20 Jul 2015QC 16644