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DGR Status and Donations

THE TAKEAWAY: Donors can only claim a tax deduction on donations made to organisations that are endorsed as a deductible gift recipient (DGR). Gaining DGR status is not as easy as you might think – it requires a lot more than just being able to prove your not-for-profit status or your worth to society.

Donors can claim tax deductions for gifts to DGRs in their income tax returns, but there are rules about what sorts of organisations can claim DGR status, and about the types of gifts eligible for deductibility.

What is a DGR?

Who can and cannot be a DGR is defined by tax law – with only certain types of organisations eligible.

Some larger organisations are listed by name in Australia's income tax law (for example, Amnesty International) and are automatically classed as DGRs. Others must fall within a general DGR category set out in income tax law.

Here’s how the Australian Government’s ABN website defines DGR status:

Some examples of the types of organisations eligible for DGR status include:

To become a DGR, your organisation needs to fit the requirements set down in law and be endorsed as a DGR by the Australian Tax Office.

Gaining and Maintaining DGR status

To apply for a DGR endorsement from the ATO, your organisation will have to tick five boxes. As the GiftPack explains, an organisation will need to:

Claiming Deductions

While not all gifts made to DGR organisations are tax deductible, the majority are. Tax laws state what types of gifts are tax deductible; for instance:

* may only be accepted by a limited number of DGRs