The importance of good governance

You need to make sure your NFP is operating for purpose. If your organisation is a deductible gift recipient (DGR), you can only use tax-deductible gifts for the purpose of the DGR category you are endorsed under.

You must also keep records relevant to your organisation’s status as a DGR. Your records must show that all gifts and deductible contributions are being used for your principal DGR purpose.

You should review your circumstances and entitlement to DGR endorsement regularly.

To view the ATO article in full, click here.

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