13/02/2024
From 1 January 2024, there is a new process for not-for-profit (NFP) organisations wishing to apply for deductible gift recipient endorsement (DGR) from the Australian government. This change is designed to streamline the administration and review of DGR eligibility.
DGR endorsement means that donations received by the NFP to support its organisation may be claimed as tax deductions by those making the donations.
Currently, NFP organisations that are charities and registered with the Australian Charities and Not-for-profits Commission may apply for certain categories of DGR status endorsed by the Australian Taxation Office (ATO).
There are 52 DGR endorsement categories, each with specific criteria. Eligibility is based on the organisation’s purpose or the purpose of a fund, authority or institution it operates.
Before 1 January 2024, a specific four DGR categories of NFP organisations were administered by federal government departments other than by the ATO. The government departments were required to maintain separate registers for these types of organisations. These four categories of DGR-endorsed organisations were:
· Cultural organisations (register administered by the Department of Infrastructure, Transport, Regional Development, Communications and the Arts)
· Environmental organisations (register administered by the Department of Climate Change, Energy, the Environment and Water)
· Harm prevention charities (register administered by the Department of Social Services), and
· Overseas aid funds (register administered by the Department of Foreign Affairs and Trade).
The new process brought in by recent legislation amends Australia’s tax laws to transfer administrative responsibility for these four DGR categories from the other government departments to the ATO. There are no longer requirements to maintain separate registers of these types of DGR-endorsed organisations.
The changes relate to organisations endorsed before 1 January 2024 under the following DGR categories:
· Public fund on the Register of Cultural Organisations
· Public fund on the Register of Environmental Organisations
· Public fund on the Register of Harm Prevention Charities, and
· Overseas aid fund.
The provisions also apply to organisations with applications for DGR endorsement in progress.
For advice on how these changes could affect your organisation, please contact us at enquiries@griffinlegal.com.au
