Governance for Deductible Gift Recipients – Is your organisation’s DGR status reviewed annually?

Organisations endorsed as a Deductible Gift Recipient (“DGR”) are entitled to receive gifts and contributions which donors are generally able to claim as a tax deduction. There are 50,908 charities registered with the Australian Charities and Not-for-profits Commission, with around 20,000 registered charities with DGR status.

The DGR tax concession dates back to 1915 and is intended to encourage philanthropy and provide support for the not-for-profit sector. The tax concessions amount to more than $1.3 billion a year, and are estimated to rise to $1.46 billion by 2019-20.

It is critical for the board of a not-for-profit endorsed as a DGR to understand their organisation’s DGR tax concession and the basis for their organisation’s endorsement, and be cognisant of the requirements and issues that may impact the DGR status of the not-for-profit.

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