• Accessing funding from other organisations

    If your NFP organisation is unable to obtain DGR status, you may be able to access funds from organisations that have DGR status. Some DGRs operate to provide funding to other organisations, such as the:

    Your NFP organisation may be able to partner with DGRs as a way of facilitating financial support for your organisation.

    If your supporters transfer money or other property to a DGR on condition it is passed onto your organisation or event, the tax deductibility of the payment may be affected.

    Donors can make a request that a gift be directed to a particular organisation. These arrangements will not prevent the payment from being a gift (and the donor claiming a tax deduction) if the DGR:

    • obtains in its own right to the full value or benefit of the property donated
    • is empowered and has absolute discretion whether to distribute the property to those organisations nominated by the supporter.

    Example 1 – Not a deductible gift

    Greg is an avid supporter of his local AFL team. He sends a cheque for $500 to the Australian Sports Foundation (ASF) with a letter stating the amount be given to his favourite team.

    The ASF does not have discretion whether to apply the amount in accordance with the supporter's wishes. The $500 is not a deductible gift, as no benefaction has been conferred on the DGR.

    Example 2 – Deductible gift
    Cecilie is a great supporter of the arts in her local area. She sends a cheque for $500 to the Australia Business Arts Foundation (AbaF) with a letter stating she would prefer the funds be given to an arts organisation that supports visual artists in her region.

    AbaF has the discretion whether to apply the amount in accordance with the supporter's wishes. The $500 is a deductible gift, as benefaction has been conferred on the DGR.

    Example 3 – Deductible gift

    Beth is keen to support Indigenous students in remote communities. She nominates a project registered with Schools Plus and donates $450 via their website.

    Although Beth has indicated a preference for her donation, Schools Plus has the discretion whether to apply the amount in accordance with her preference. The $450 is a deductible gift.

    End of example
    Last modified: 06 Jun 2016QC 46275