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WHAT ARE DEDUCTIBLE GIFT RECIPIENTS (DGR)?

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24
May

An organisation that is entitled to receive income tax deductible gifts and tax deductible contributions is known as Deductible gift recipients. Organisations those are not entitled as DGR cannot claim a tax deduction for their donation or contributions. To be endorsed as a DGR organisation, you must meet all of these requirements:

  •  Must be in Australia; 
  • An Australian business number (ABN); 
  • Fall under category of DGR described in the DGR table; 
  • Acceptable by the rules for transferring surplus gifts; 
  • Must maintain a gifts fund if a part of the organisation falls under DGR;
  • Must apply to the ATO for endorsement.

You can endorse your organisation by two different ways. One is either have DGR endorsed by ATO & another is to be listed by name in tax law.

  • Endorsed by ATO: Majority of the DGRs are endorsed by the ATO. If a not-for-profit (NFP) organisation wants to receive income tax deductible gifts it must be a deductible gift recipient (DGR) endorsed by ATO. 
  • Listed by name in tax law: To be DGR listed by name, parliament must amend the tax law to include the name of the organisation in the law. DGRs listed by name include organisations such as the Australian Sports Foundations and Amnesty International Australia etc. ATO does not process inquires for listing a DGR by name.

The Political parties cannot be entitled as DGR; however, the donations made by an individual may be tax deductible.  


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