In December 2017, the Australian Government announced reforms to the Deductible Gift Recipient (DGR) system.
The reforms aim to strengthen the DGR governance arrangements, reduce administrative complexity and ensure appropriate oversight of entities with DGR endorsement. It will also enhance confidence in the charity sector by ensuring DGR endorsements are reserved for eligible charities.
As part of the reforms, the ACNC will review 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.
Requirement to be a registered charity
From 14 December 2021, most entities that hold Deductible Gift Recipient (DGR) endorsement must be registered as charities with the ACNC.