How to register as a Deductible Gift Recipient (DGR) in Australia
To become a DGR, an organisation must fall within an eligible DGR category in Division 30 of the Income Tax Assessment Act 1997 (Cth), register as a charity with the ACNC (for most categories), and apply for ATO DGR endorsement. Most categories require registration and alignment of governing rules.
The framework
Income Tax Assessment Act 1997 (Cth) — Division 30 (gifts), Division 50 (income tax exemption); Charities Act 2013 (Cth); ACNC Act 2012 (Cth); ATO Taxation Rulings and Guidelines.
The process
Identify an eligible DGR category
Division 30 of the ITAA 1997 lists the categories — PBI, health promotion charity, overseas aid fund, environmental organisation, school building fund, harm prevention charity, and others. Confirm the category that fits the purposes.
Align purposes and activities
The organisation's governing document must restrict activities to the DGR purpose. PBIs must have dominant purpose of direct relief of poverty, sickness, suffering, distress, misfortune, disability, or helplessness.
Register as a charity with the ACNC
From 14 December 2021, most DGR categories require ACNC charity registration (see Treasury Laws Amendment (2021 Measures No. 2) Act). Apply at acnc.gov.au.
Establish a DGR-compliant fund (if required)
Categories like school building funds and public funds require a separate fund with its own bank account, receipts, and management committee of responsible persons.
Draft required constitutional clauses
Include winding-up and revocation clauses transferring DGR assets to another DGR with similar purposes, and restrict use of gifts to the DGR purpose.
Lodge the DGR endorsement application
Apply via the ACNC charity application or directly to the ATO using the Application for Endorsement as a DGR form. Supply governing document, activities, and responsible persons details.
Respond to ATO questions
The ATO commonly asks about activities, geographic scope, overseas activity (for overseas aid), management arrangements, and financial controls.
Receive endorsement
If approved, the ATO endorses the entity or fund as a DGR from the effective date. Endorsement is recorded on the Australian Business Register (ABN Lookup).
Issue compliant receipts
Tax-deductible receipts must state the donor's details, ABN, DGR endorsement, that the payment is a gift, and the date — per TR 2005/13 requirements.
Maintain ongoing compliance
File the ACNC Annual Information Statement, continue to meet the DGR category and charity registration, and notify the ATO of material changes. Revocation is possible on non-compliance.
Forms and templates
Common mistakes
- Applying for a DGR category the organisation does not fit (e.g. PBI when purposes are too broad)
- Failing to restrict purposes in the governing document
- Missing the requirement for a separate public fund
- Not registering with the ACNC where required
- Issuing non-compliant receipts
Get this process right with Quillio
Quillio can map purposes against Division 30 categories, draft DGR-compliant constitutional clauses and public fund rules, and prepare the ATO endorsement application. See /practice-areas/commercial-lawyers.
General information only, not legal advice. DGR status is tax-sensitive and category-specific. Engage a specialist NFP lawyer and tax adviser.
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