NDIS Criterion
MEDIA, JOBS & RESOURCES FOR THE COMMON GOOD
NEWS  |  Finance, Philanthropy

Bicycle Victoria Recognised as a Charity But Denied DGR Status


Thursday, 28th July 2011 at 3:28 pm
Lina Caneva, Editor
Self-funded Not for Profit organisation, Bicycle Victoria has won the right to be called a charity but has missed out on Deductible Gift Recipient (DGR) status.

Thursday, 28th July 2011
at 3:28 pm
Lina Caneva, Editor


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
Bicycle Victoria Recognised as a Charity But Denied DGR Status
Thursday, 28th July 2011 at 3:28 pm

 

Self-funded Not for Profit organisation, Bicycle Victoria has won the right to be called a charity but has missed out on Deductible Gift Recipient (DGR) status.

The Administrative Appeals Tribunal has ruled that Bicycle Victoria is an income tax exempt charitable institution, however it has backed the Australian Tax Office in denying the bicycle lobby group Deductible Gift Recipient status.

The ruling is described by the organisation as a landmark decision.

Bicycle Victoria CEO, Harry Barber says the outcome is a victory for Bicycle Victoria members and for the community.

He says physical activity is ranked second only to tobacco control as the most important factor in disease prevention in Australia.

In 2009 Bicycle Victoria applied to the Australian Tax Office to be granted formal status as a health promotion charity and as a charitable institution, however the ATO refused to endorse Bicycle Victoria on both of these.

Being endorsed as a ‘health promotion charity’ would have meant Bicycle Victoria received deductible gift recipient status and donations of more than $2 to the organisation would be tax-deductible.

Endorsement as a charitable institution means, among other things, that Bicycle Victoria would be exempt from income tax.

Bicycle Victoria appealed the decision, taking it to the Administrative Appeals Tribunal.

On July 24, 2011 the Deputy President of the Administrative Appeals Tribunal handed down a 95 page report which found that that Bicycle Victoria’s purpose was the promotion of cycling in all its forms and the overall purpose of promoting fitness, which is a recognised charitable purpose.

AAT Deputy President S A Forgie said Bicycle Victoria exists for the purpose of promoting cycling in all its forms and for the overall purpose of promoting fitness and  Bicycle Victoria is entitled to endorsement as a charitable institution and exempt from income tax.

Despite finding that Bicycle Victoria is a charitable institution, the tribunal backed the ATO’s findings that Bicycle Victoria should not be endorsed as a ‘health promotion charity’ nor given deductible gift recipient status.

A health promotion charity is recognised as a charitable institution whose principal activity is to promote the prevention or the control of disease in human beings.

The Australian Tax Office says it is currently considering the implications of this decision.

Bicycle Victoria is a Not for Profit organisation with more than 45,000 members, working to get ‘more people cycling more often’.

The judgement can be seen at http://www.austlii.edu.au/au/cases/cth/AATA/2011/444.html

Editors note: In the interests of transparency, Pro Bono Australia Journalist, Ryan Witcombe is a current member of Bicycle Victoria.


Lina Caneva  |  Editor |  @ProBonoNews

Lina Caneva has been a journalist for more than 35 years, and Editor of Pro Bono Australia News since it was founded in 2000.

FEATURED SUPPLIERS


Yes we’re lawyers, but we do a lot more....

Moores

NGO Recruitment is Australia’s not-for-profit sector recru...

NGO Recruitment

Helping the helpers fund their mission…...

FrontStream Pty Ltd (FrontStream AsiaPacific)

...


More Suppliers

Get more stories like this

FREE SOCIAL
SECTOR NEWS

YOU MAY ALSO LIKE

Australian Gift Deductions Take a Great Leap Forward

Lina Caneva

Thursday, 12th October 2017 at 8:10 am

Boosting Philanthropy For A Stronger Australia

Wendy Williams

Monday, 11th September 2017 at 5:16 pm

Understanding USP is Key to Securing Philanthropic Income

Wendy Williams

Monday, 11th September 2017 at 2:29 pm

Australians Urged to Give a Gift to Charities in Their Will

Luke Michael

Friday, 8th September 2017 at 4:32 pm

POPULAR

Disability Advocacy Group Fights to Restore State Funding

Luke Michael

Thursday, 9th November 2017 at 8:37 am

Red Cross Moves to Wage-Based Fundraising Model

Lina Caneva

Thursday, 16th November 2017 at 8:30 am

New Same-Sex Marriage Bill Looks to Protect Faith-Based Charities

Luke Michael

Monday, 13th November 2017 at 5:25 pm

Donors Looking for a Personalised Experience to Give More – Study

Lina Caneva

Wednesday, 8th November 2017 at 1:43 pm

Write a Reply or Comment

Your email address will not be published. Required fields are marked *


NDIS Criterion
pba inverse logo
Subscribe Twitter Facebook

Get the social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!