Charities reminded to act now to avoid losing deductible gift recipient status

Most non-government DGR organisations need to be registered as a charity before 14 December 2022 or they will lose DGR status.

The Australian Taxation Office said it is important that DGRs check now whether their organisation meets the requirements for DGR endorsement.

A DGR must:

• Meet the definition of an Australian government agency
• Be a registered charity
• Be operated by a registered charity or an Australian government agency
• Be an ancillary fund or a DGR that is specifically listed by name in tax legislation

If an organisation does not meet one of the above criteria, they will need to register it as a charity with the Australian Charities and Not-for-profits Commission (ACNC) before 14 December to keep its DGR endorsement.

Organisations can visit the ACNC website to check the charity registration eligibility requirements and ongoing obligations. They can also make an online application via the ACNC Charity Portal.

If an eligible organisation needs more time to meet the requirements, they can apply for a three-year extension. This includes if they have already requested charity registration with the ACNC and it is still in progress.

Organisations must submit their three-year extension application before 14 December for it to be considered. If approved, they will have until 14 December 2025 to meet the new eligibility requirements for DGR endorsement.

DGRs that don’t meet the new eligibility requirements or haven’t applied for a three-year extension by the required date will no longer be entitled to DGR endorsement and will have their status revoked.