Refer to the list on changes that may impact your organisation:
Transitional provisions in place from 1 January 2024
Your DGR endorsement will change from endorsement for the operation of a public fund to endorsement of your whole organisation.
The new law requires you to maintain a gift fund, which must only be used for the principal purpose of your organisation. Your public fund will be treated as your gift fund – unless or until you establish a replacement gift fund.
For public funds on the Register of Harm Prevention Charities or the Register of Environmental Organisations, the transitional provisions provide that if your public fund is wound up:
- any surplus assets of the public fund are to be transferred to another gift deductible fund, authority or institution
- unless or until you amend the winding up provisions.
Your existing winding up provisions (which require any surplus assets of your public fund to be transferred to another fund on the register) will be treated as your winding up provisions under the new law, as the Registers will no longer exist.
For registered charities, any transfer must be to another DGR with similar objects, which is charitable at law.
Your governing document
Changes to your governing document are not required to remain eligible for DGR endorsement under the new law.
However, you may amend your governing document to align it to the new law in due course. For example, by updating your winding up provisions or removing any references to one of the registers.
If you do make changes, you must comply with the terms of your governing document which specify how changes or amendments to your governing document are made.
If you are a registered charity, you continue to have additional obligations to the Australian Charities and Not-for-profits Commission (ACNC). You must notify the ACNC about changes to your governing document. Refer to ongoing obligations to the ACNCExternal Link.
Public fund obligations
The transitional provisions allow you to treat your public fund as your gift fund under the new law.
This means that from 1 January 2024, you can continue to use your public fund as your gift fund unless or until you establish a replacement gift fund.
Unless you make changes, you still need to follow your public fund rules where they are compatible with the new law. For example, requirements in your public fund rules for a majority of responsible persons (to be on the management committee of the fund) is compatible with the new law, so unless or until you make changes to your public fund rules (or replace them with a new gift fund) you would need to continue with this requirement.
If the new law requires you to do something that is not compatible with your public fund rules the new law applies. For example, the requirement in the new law to issue receipts in the name of your organisation is not compatible with requirements in your public fund rules to issue receipts in the name of the fund, so you would issue receipts in the name of your organisation.
You do not need to make any changes to your public fund rules. If you decide to make changes you should consider:
- removing requirements for the fund to have a specific name (your fund can still have a specific name, but this is no longer a requirement).
- amending the name of the public fund to reflect that it is a gift fund.
- amending any rules relating to the objects and operations of the fund to reflect that:
- the fund must be maintained and used only for the principal purpose of the organisation
- all gifts and deductible contributions of money or property for that purpose are made to it
- any money received by the organisation, because of such gifts or deductible contributions is credited to it
- it does not receive any other money or property.
- whether amendments are needed to ensure that the organisation has appropriate winding up rules to transfer any surplus assets of the gift fund to another gift deductible fund, authority or institution on the earlier of either the fund being wound up or the DGR endorsement being revoked. If the organisation is a registered charity, the recipient of the surplus assets of the gift fund must also be a registered charity.
- removing any requirement:
- that receipts are to be issued in the name of the fund (as a DGR you are not required to issue a receipt but if you do you must include certain information)
- for a separate bank account for gifts and deductible contributions (you can still maintain a separate bank account, but this is no longer a requirement)
- that the public must be invited to contribute to the fund (this is no longer a requirement)
- that the fund must be managed by members of a committee, a majority of whom have a degree of responsibility to the general community (this is no longer a requirement)
- to notify the ATO of changes to the fund rules (this is no longer a requirement)
- to inform the former relevant government department of a specific matter such as statistical information or changes, including changes to the membership of the management committee (this is no longer a requirement)
- to comply with rules set by the Treasurer or responsible Minister (this is no longer a requirement)
- that any surpluses assets of the fund on windup must go to another entity listed on a particular register (this is no longer a requirement).
Alternatively, if you choose to replace your public fund with a gift fund, remove your public fund rules in their entirety (including any former department requirements) and add a replacement gift fund.
A policy to not act as a mere conduit is still required if you are a harm prevention charity or environmental organisation.
ABN Look-up
From 1 January 2024 we will gradually update our systems to reflect that your DGR endorsement for:
- the operation of a public fund ended on 31 December 2023 – this will be visible in your Historical details on ABN Look upExternal Link
- your whole organisation is effective from 1 January 2024 – this will be visible in your Current details on ABN Look upExternal Link.
DGR endorsement notice
You will receive an updated DGR endorsement notice in early 2024.
It will show that you are endorsed under the new category name, either:
- cultural organisation
- environmental organisation
- harm prevention charity.
Receipts
From 1 January 2024, receipts for gifts and deductible contributions to your organisation are to be issued in the name of your organisation and no longer in the public fund name.
For more information about receipts, refer to receipts.
Statistical information
Do not send your statistical information or return to the ATO or former relevant government department.
From 1 January 2024, you're no longer required to lodge your statistical information or return.
If you have any outstanding statistical information or returns, you can no longer lodge them with the relevant government department or send them to the ATO.
If you're a registered charity, you are required to lodge your Annual Information StatementExternal Link with the ACNC.
Gift fund
If you establish a gift fund, it may either:
- be part of the governing document of your organisation
- have its own rules or constitution.
A separate ABN is not needed for the gift fund.
For more information about gift funds, refer to gift fund requirements.
Policy to not act as a mere conduit
If you are a harm prevention charity or environmental organisation, you must continue to have a policy of not acting as a mere conduit for the donation of money or property to other organisations, bodies or persons.
Evidence of this policy may be in your organisation’s:
- governing document
- in a separate policy document
- stated on your website
- stated on receipts issued to donors.
Environmental organisation entity type
From 1 January 2024, the requirement that applied to a body corporate or a co-operative society (to principally have members that were bodies corporate or have at least 50 individuals who were financial members who could vote at a general meeting) has been removed.
Under the new law, an environmental organisation must be an institution that is registered as a charity with the ACNC or an Australian government agency.
Notification of changes
From 1 January 2024, you are no longer required to notify the former relevant Department of changes to your organisation.
You must continue to notify the ATO about some changes. Refer to changes to your organisation.
For example, you should only notify the ATO of changes to committee members if the changes mean that authorised contacts listed with the ATO need to be updated.
If you are a registered charity, you continue to have additional obligations to the ACNC. You must notify them about some changes. Refer to ongoing obligations to the ACNCExternal Link.
Other changes to consider
Consider removing any references to being ‘listed on the relevant register’. This may include:
- website content
- other promotional or public facing material.
Review of eligibility
Check your organisation's continued eligibility to be endorsed as a DGR by completing a review of your DGR endorsement.
If your organisation is no longer entitled to DGR endorsement, you must tell us in writing. Refer to notifying us of changes.