Government pushes critical DGR requirements

Organisations must meet certain criteria, or apply for an extension, before the end of the year to receive crucial DGR status. Non-government organisations need to register as a charity with the Australian Charities and Not-for-profits Commission (ACNC) before 14 December 2022 to keep deductible gift recipient (DGR) entitlements. The Australian government issued a reminder for the requirement last week, advising that ?time is running out to avoid losing deductible gift recipient status?, which allows organisations to receive donations that are tax deductible.

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See more: DGR status could safeguard vulnerable news sector

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The requirement for DGR endorsement is that a fund, authority or institution must be one of the following:

• a registered charity, or
• an˜Australian government agency, or
• operated by a registered charity or an Australian government agency.

Ancillary funds and DGRs specifically listed by name in tax law are exempt from this requirement. Non-government organisations that qualify for DGR status but cannot meet the deadline can apply for a three-year extension, which must also be submitted before 14 December 2022 to be considered. This includes organisations that have in-progress applications for ACNC charity registration.

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See more: ACNC annual report shows volatile year for charities

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Organisations can apply online to register as a charity with the ACNC, and also check eligibility requirements and ongoing obligations.