Unlock DGR: Justice Connect calls for urgent reform as tax system is locking thousands of charities out of vital financial support
5 Nov 2025
MEDIA RELEASE
Justice Connect has launched Unlock DGR, a new campaign calling for urgent reform of Australia’s Deductible Gift Recipient (DGR) system.
The DGR system determines which charities can receive tax-deductible donations and funding from philanthropy and grant makers, but Justice Connect says that the overcomplicated tax rules are locking thousands of charities out of vital financial support.
Right now, around half of all registered charities miss out on DGR status, and therefore access to crucial philanthropic and community funding that would help them increase their impact
“Australia’s charity sector is being held back by a tax system that hasn’t kept up with how charities actually work,” said Chris Povey, CEO of Justice Connect.
“The DGR system is outdated, overly complex, and unfair. It locks out small and emerging charities that are doing critical work on the frontlines of community need.”
“By modernising and simplifying the DGR system, we can unlock the full potential of our vibrant charity sector, powering new opportunities for giving, innovation, and impact.”
The current DGR system has grown haphazardly over more than a century, with over 50 categories today. Many smaller charities can’t afford the legal or administrative support needed to navigate the application process, leaving them locked out of critical funding.
Justice Connect believes the system has become too rigid for modern charities that work across multiple causes, and is out of step with today’s values, often excluding community-based organisations that deliver essential support and local impact.
“With over 12 years’ experience working alongside tens of thousands of charities nationwide, we’ve seen firsthand that access to DGR status continues to be one of the most misunderstood and resource-intensive areas of the tax system for charities,” said Geraldine Menere, Head of Not-for-profit Law at Justice Connect.
Reforming the DGR system will:
- Foster more sustainable charities, enabling them to create more impact in their communities.
- Unlock philanthropy and new funding streams, helping meet the Federal Government’s goal to double giving by 2030.
- Cut red tape and simplify administration for both charities and regulators.
“Charities are facing unprecedented pressure, from the cost-of-living crisis to climate-fuelled disasters,” said Menere.
“As community needs continue to grow, many charities are being asked to do more with less. They’re taking on new responsibilities without the financial support to match.”
“Now is the time to unlock opportunity, giving, and community impact by expanding access to DGR status so more charities can sustain their vital work.”
The Productivity Commission’s Future Foundations for Giving report (2024) provides a clear, evidence-based roadmap for reform that would make most charities eligible for DGR endorsement.
Successive reports, including the Not-for-profit Sector Development Blueprint (2024) and multiple Productivity Commission reports, have all identified DGR reform as a key step toward a more equitable and productive charity sector.
“We’re ready to work with Government, philanthropy, and the sector to make the DGR system fairer, simpler, and future-ready”, Menere said.
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MEDIA ENQUIRIES:
Emily Malone, Head of Engagement, Justice Connect
emily.malone@justiceconnect.org.au
+61 3 8636 4476
About Justice Connect:
Justice Connect is a legal service organisation and charity that designs and delivers high impact interventions to increase access to legal support and progress social justice.
About Justice Connect’s Not-for-profit Law:
Not-for-profit Law is Justice Connect’s specialist program for community organisations and is a sector-led response that not-for-profits and their peak bodies trust. It’s the only service of its kind in Australia. Since its establishment in 2008, Not-for-profit Law has helped prevent and resolve legal, regulatory and governance issues for hundreds of thousands of community organisations across Australia.
Our partners:
The Unlock DGR campaign is supported by Minderoo Foundation, a modern philanthropy working to forge a fair future. Minderoo tackles tough, persistent challenges through evidence, partnership and practical solutions that create lasting change. Learn more at minderoo.org.