Maintain DGR endorsement
Deductible Gift Recipients must keep meeting the requirements of their DGR category for as long as they are endorsed.
Who must comply
Entities endorsed by the ATO as deductible gift recipients.
What triggers it
Holding DGR endorsement and receiving tax-deductible gifts.
When due
Continuously while endorsed; notify the ATO if the entity stops meeting its DGR category requirements.
Evidence required
Endorsement records; evidence the entity still meets its DGR category requirements; records of gifts received and their use; ACNC Annual Information Statement (registered charities).
Max penalty
Loss of DGR endorsement; income tax assessment for misuse of donations
Who must comply with this? The applicability test by industry, business structure and size.
Summary
Division 30 of the Income Tax Assessment Act 1997 sets the deductible gift recipient (DGR) categories. The ATO endorses entities as DGRs, and an endorsed entity must continue to meet the requirements of its category for as long as it holds endorsement; the ATO can revoke endorsement if it no longer does. From 1 January 2024 the DGR Registers Reform changed four DGR categories, including environmental organisations, harm prevention charities and cultural organisations, with transitional provisions administered by the ATO. There is no separate annual DGR self-review return: charities registered with the ACNC report each year through the ACNC Annual Information Statement, and the ATO's yearly NFP self-review return applies only to non-charitable not-for-profits that self-assess as income tax exempt.
Enforced by
Source legislation
Industries
Entity types
Topics
Related
- CWLTHComply with ACNC Governance StandardsSix governance standards covering NFP purpose, accountability, compliance, suitability, duties and PBI requirements.
- CWLTHPAF (Private Ancillary Fund) governance + minimum distributionsPAFs must distribute minimum 5% of net assets annually + comply with PAF Guidelines.
- CWLTHLodge the ACNC Annual Information StatementRegistered charities must lodge the AIS within 6 months of the end of the reporting period.
- CWLTHComply with ACNC External Conduct Standards (overseas activity)Charities operating or sending funds overseas must comply with four External Conduct Standards.
- CWLTHMaintain Basic Religious Charity status (ACNC) — limited carve-outsBasic religious charities have limited ACNC governance carve-outs but still register.
- All statesCharity public fundraising — state authority cycleEach state requires authorisation for public fundraising appeals.
Reading
Frequently asked questions
- Who must comply with DGR endorsement?
- Entities endorsed by the ATO as deductible gift recipients.
- What triggers DGR endorsement?
- Holding DGR endorsement and receiving tax-deductible gifts.
- When is DGR endorsement due?
- Continuously while endorsed; notify the ATO if the entity stops meeting its DGR category requirements.
- What is the maximum penalty for DGR endorsement?
- Loss of DGR endorsement; income tax assessment for misuse of donations
- What evidence is required for DGR endorsement?
- Endorsement records; evidence the entity still meets its DGR category requirements; records of gifts received and their use; ACNC Annual Information Statement (registered charities).
Source: https://www.ato.gov.au/businesses-and-organisations/not-for-profit-organisations/getting-started/in-detail/types-of-dgrs. Rules Mate is not a law firm. Always verify against the live regulator source before acting.