Who must maintain DGR endorsement?
The applicability test for Maintain DGR endorsement (ATO and ACNC), computed across 35 industries, 9 business structures and 6 size bands.
Short answer: Only if
Applies only if you are endorsed as a deductible gift recipient. Whether it applies turns on a fact that no industry, structure or size settles on its own.
What the obligation is
Deductible Gift Recipients must keep meeting the requirements of their DGR category for as long as they are endorsed.
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.
The applicability test
Applies only if you are endorsed as a deductible gift recipient. Whether it applies turns on a fact that no industry, structure or size settles on its own.
How the regulator frames it: Entities endorsed by the ATO as deductible gift recipients.
What triggers it: Holding DGR endorsement and receiving tax-deductible gifts.
Jurisdiction: Commonwealth law, so the test is the same in every state and territory.
Which industries are in or out
Outcome across the 35 industries Rules Mate maps (35 of 35: only if a further fact applies).
The answer is the same in every industry: only if a further fact applies. Industry does not change who must comply.
Business structure and size
| Structure | Answer across all industries, any size | Engine's reason (real estate agents, 6–19 employees) |
|---|---|---|
| Sole trader | No | Requires a trigger outside this questionnaire |
| Partnership | No | Requires a trigger outside this questionnaire |
| Trust | No | Requires a trigger outside this questionnaire |
| Pty Ltd company | No | Requires a trigger outside this questionnaire |
| Public company | No | Requires a trigger outside this questionnaire |
| Not-for-profit (unregistered) | Only if a further fact applies | Only if you are endorsed as a deductible gift recipient |
| Registered charity | Only if a further fact applies | Only if you are endorsed as a deductible gift recipient |
| Super fund | No | Requires a trigger outside this questionnaire |
| Foreign company | No | Requires a trigger outside this questionnaire |
Size does not change the answer across all industries: at every size band the answer is "only if a further fact applies".
Worked examples
Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:
- Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: does not apply. Requires a trigger outside this questionnaire.
- Registered charity in real estate agents with 6–19 employees, turnover $1M–$3M: check whether it applies. applies only if you are endorsed as a deductible gift recipient.
When you need to check further
The engine shows this obligation as "check whether this applies" when a business has ACNC registration or nfp unregistered. It then applies only if you are endorsed as a deductible gift recipient. That fact is not something Rules Mate can infer from industry, structure or size.
What you must do, and when
- When due
- Continuously while endorsed; notify the ATO if the entity stops meeting its DGR category requirements.
- Frequency
- Ongoing
- Evidence to keep
- Endorsement records; evidence the entity still meets its DGR category requirements; records of gifts received and their use; ACNC Annual Information Statement (registered charities).
- Status
- Current
- Priority
- High
Penalty for not complying
Maximum penalty: Loss of DGR endorsement; income tax assessment for misuse of donations.
Audit or assurance level
Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.
Where it sits in the corpus
Rules Mate tracks 9 published obligations tagged "charities", 3 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 0 of those apply outright. This obligation is rated high priority, and is an ongoing duty.
Regulator, legislation and tools
Regulated by Australian Taxation Office and Australian Charities and Not-for-profits Commission.
ATO: Federal tax administrator covering income tax, GST, PAYG, FBT, superannuation guarantee, STP, and self-managed super funds. Also administers the Director ID regime via ABRS.
ACNC: Federal charity regulator. Registers charities, administers governance and external conduct standards, and publishes the Charity Register.
ITAA 1997: Modern federal income tax statute (replaces ITAA 1936 progressively).
Free tools that help with this obligation:
Questions
- Who must maintain DGR endorsement?
- Applies only if you are endorsed as a deductible gift recipient. Whether it applies turns on a fact that no industry, structure or size settles on its own.
- Do sole traders need to maintain DGR endorsement?
- No. Across every industry and every size band, the engine's answer for a sole trader is: no.
- Do businesses with 1–5 employees need to maintain DGR endorsement?
- Only if a further fact applies (1–5 employees, turnover $100K–$1M).
- When is "Maintain DGR endorsement" due?
- Continuously while endorsed; notify the ATO if the entity stops meeting its DGR category requirements.
Related
Sources
Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.