Charity deductible gift recipient review checklist
DGR endorsement allows a charity to receive tax-deductible donations. Maintaining endorsement requires ongoing compliance with gift fund rules, purpose restrictions, and ATO requirements. This checklist structures a periodic review to identify compliance gaps before they result in revocation.
This is a 12-step checklist for reviewing a charity's deductible gift recipient (DGR) endorsement and ongoing compliance under Division 30 of the Income Tax Assessment Act 1997 (Cth). It covers gift fund requirements, eligible purposes, and ATO reporting.
The checklist
Confirm DGR category
Identify the specific DGR category under Division 30 that the charity is endorsed in and confirm the purposes still align.
Review gift fund operation
Confirm the gift fund is being operated correctly — gifts are deposited into the fund and used only for the DGR purpose.
Check in-Australia requirement
Confirm the charity is operating principally in Australia unless it holds a specific overseas DGR category.
Audit gift receipting
Review donation receipts for compliance — each must include the DGR's name, ABN, the amount, and state that it is a receipt for a tax-deductible gift.
Review governing rules
Confirm the governing document (constitution or trust deed) includes the required DGR clauses, including the winding-up clause directing surplus to another DGR.
Check ACNC registration alignment
If the DGR is an ACNC-registered charity, confirm that the ACNC registration details, subtypes, and reported activities align with the DGR purpose.
Verify responsible person requirements
Confirm all responsible persons meet the DGR eligibility requirements and are not disqualified.
Review gift fund financial records
Review financial records for the gift fund to ensure proper segregation from general operating funds and compliance with accounting requirements.
Assess fundraising compliance
Review fundraising activities for compliance with state and territory fundraising legislation and any applicable fundraising licences.
Check annual return reporting
Confirm that DGR information is correctly reported in the charity's annual return to the ATO and ACNC.
Review any conduit giving
If the DGR distributes funds to other entities, confirm the distribution complies with the DGR purpose and any specific conditions.
Document review and remediation
Document the review findings, any compliance gaps identified, and the remediation steps and timeline agreed with the board.
When this checklist applies
Use for a periodic compliance review of a charity's DGR endorsement, especially before annual reporting or when governance changes occur.
Common pitfalls
- Gift fund monies used for purposes outside the endorsed DGR category
- Donation receipts missing required information, exposing donors to ATO disallowance
- Governing rules lacking the mandatory DGR winding-up clause
- Failure to segregate gift fund records from general operating funds
- Not updating the ATO after changes to responsible persons or governing rules
Run this checklist on a real matter
Quillio can map charity activities to DGR categories, review governing documents for required clauses, and flag common receipting errors.
General DGR compliance review guidance. DGR categories and conditions vary — obtain specialist tax and not-for-profit advice for your specific endorsement.
Use this checklist on your matter.
Quillio can run this checklist on a specific NSW conveyancing matter — confirm each item, calculate adjustments, and generate the supporting documents. The free trial requires no credit card.
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