Reforms to the Deductible Gift Recipient (DGR) system aim to strengthen the DGR governance arrangements, reduce administrative complexity and ensure appropriate oversight of entities with DGR endorsement.
The process will also enhance confidence in the charity sector by ensuring DGR endorsements are reserved for eligible charities. This will help protect the integrity of the ACNC Charity Register and provide assurance to donors that donations are being used for charitable purposes.
Reviewing current DGR charities
As part of the reforms, the ACNC is reviewing a selection of charities with a DGR endorsement to ensure they remain eligible for their charity registrations.
Because many DGR categories require registration as a charity, these reviews will help determine whether the charities remain eligible for certain DGR endorsements and tax concessions from the ATO.
We are reviewing approximately 500 charities per year.
Not all charities have a DGR endorsement. Check the Australian Business Register for a record of a charity's DGR endorsements and tax concessions.
The review process
We are reviewing the registrations of charities using information that we already have or is publicly available.
We will only contact a charity if we identify an issue with its registration. In such cases, we will work with the charity to resolve the issue.
Importantly, this means that a charity does not need to do anything unless it is contacted by the ACNC.
Which charities are being reviewed
We are focussing on charities registered as Public Benevolent Institutions.
Public Benevolent Institutions comprise the largest group of charities with DGR endorsement. They also receive additional tax concessions and, because they service such a diverse section of the community, they have a substantial effect on trust and confidence in the charity sector.
We are selecting Public Benevolent Institutions for review based on risk factors, in particular:
- it was registered as a Public Benevolent Institution before 3 December 2012
- it is not regulated by ORIC.
We may also review the registration of a Public Benevolent Institution as part of a concern brought to our attention.
Charities cannot ask to be reviewed or request exemption from being reviewed.
Charities should take this opportunity to review their own registration ahead of any potential review by the ACNC.
To assist, we have a self-assessment tool that you can use to check whether your charity is complying with the key components of registration with the ACNC.
The self-assessment tool has a series of simple questions and statements about your charity and its ACNC registration. Your responses will give you an indication of your charity’s compliance with ACNC obligations and will help you identify any unresolved issues that need your attention.
The self-assessment tool is for your use only and is not to be submitted to the ACNC.
It is a resource for you that can help you ensure your charity is meeting its obligations to the ACNC and remains entitled to registration.
To make changes or to update your charity's details, log in to the Charity Portal.