Deductible Gift Recipient (DGR) endorsement

 

Organisations that are endorsed as deductible gift recipients (DGRs) are entitled to receive donations that are deductible from the donor's income tax. This means when a donor makes a gift or contribution to a DGR endorsed charity, they may be able to claim a tax deduction. The amount of the claim will depend on the type of gift or contribution they make.

The ACNC is responsible for registering organisations as charities, and the Australian Taxation Office (ATO) is responsible for endorsing organisations as DGRs.

It is important to remember that not all charities are eligible for DGR endorsement.

Eligibility for DGR endorsement

For your charity to be endorsed as a DGR, it must meet the specific criteria of the DGR category it is applying for. Information about the different DGR categories and the specific requirements for each is available on the ATO website.

Your charity can either be endorsed as a whole, or a fund, authority or institution it operates can be endorsed. If your charity’s fund is endorsed as a DGR, only donations to that fund can be deductible.

In exceptional cases, an organisation may have DGR status through a specific listing by name in tax law.

Federal Treasury is responsible for overseeing applications involving a specific listing for DGR endorsement.

It is a requirement for organisations to be registered as a charity with the ACNC to be eligible for DGR endorsement, unless the organisation is:
•    a government organisation
•    an ancillary fund, or
•    specifically listed in tax law.

For more information, see the ATO’s guidance on DGRs required to be registered charities.

DGR Status is granted under different subtypes. You can view the subtypes here on the ATO website:

DGR table - Deductible Gift Recipient Categories | Australian Taxation Office (ato.gov.au)