A new tool to help charities make sense of DGR eligibility

15 Jul 2021

Our new, free DGR Tool asks charities some simple questions to help them work out if they are eligible for deductible gift recipient (DGR) status and their relevant DGR category.

Many charities struggle to understand their DGR eligibility

As part of the recent reforms to Australia’s deductible gift recipient system, the Australian Charities and Not-for-Profits Commission (ACNC) is reviewing charities with a DGR endorsement to ensure they remain eligible for their charity registrations. Charities, particularly those that are Public Benevolent Institutions (PBIs), should take this opportunity to review their own DGR registration ahead of any potential review by the ACNC.

Complying with tax law can be a daunting process for many organisations. The legal requirements are complex, and the language is old-fashioned.

That’s why Justice Connect’s Not-for-profit Law team has launched our DGR Tool, designed to help charities make sense of the law.

How our new DGR tool works

The DGR Tool asks a series of questions about organisations – in simple, plain English – then generates a tailored, downloadable report that summarises the information given in the tool. It takes about 20 minutes to complete.

Our free, online tool will help charities and other not-for-profit organisations understand:

  • the meaning and benefits of deductible gift recipient endorsement,
  • whether their organisation meets the eligibility requirements for DGR endorsement, and
  • DGR categories that may be relevant to their organisation.

By supporting charities to make sense of complex legal requirements with a simple and easy-to-understand tool, we hope our DGR tool can free up their limited resources so they can achieve their mission of serving communities.

Use the DGR Tool today

What is DGR status?

A deductible gift recipient is an organisation endorsed (or officially recognised) by the Australian Taxation Office (ATO) with a ‘special tax status’.

Once an organisation has DGR status, people who make gifts or donations to that organisation can claim a tax deduction on those donations so long as they meet the relevant conditions.

Organisations with DGR status may also be eligible to receive funds from certain grant makers and philanthropic bodies that only fund DGR endorsed organisations.

To help them raise much-needed funds for their crucial services, it’s vital that not-for-profit organisations understand whether they are eligible for DGR status, and what the requirements are for their particular DGR category.

Our new DGR self-help tool is available to use anytime, on any device.