Category:Deductible Gift Recipient

From PhilanthropyWiki

DGR Definition

A deductible gift recipient (DGR) is a fund or organisation that can receive tax deductible gifts. The deduction is claimed by the person or organisation that makes the gift. There are a limited number of categories or types of DGRs and there are requirements set by the ATO in order to be endorsed as a DGR.

Some DGRs are listed by name in the income tax law; these include organisations like Amnesty International Australia, Landcare Australia Limited and the Australian Academy of Science. There are also Prescribed Private Funds listed by name in the income tax regulations. For other organisations to be DGRs, they must fall within a general category set out in the income tax law. Examples include public benevolent institutions, public universities, public hospitals and school building funds.

Types of DGR

Within the general categories, there are two distinct types of DGR. It is important to understand this, as most grantmaking foundations are limited to funding only one of these types. Many grantmakers informally refer to these types as "DGR 1" and "DGR 2".

• DGR 1 is also informally known as a "doing" DGR. Most organisations which are endorsed as DGRs will fall into this category. It includes public benevolent institutions, universities, environmental organisations, cultural organisations and many more. An organisation is a DGR 1 if its endorsement from the Tax Office states that the "Provision for gift deductibility" is "item 1 of the table in section 30-15 of the Income Tax Assessment Act 1997".
• DGR 2 is known informally as a "giving" DGR. This category includes organisations which are public or ancillary funds, or Prescribed Private Funds. These organisations exist only for the purposes of providing donations to "doing" DGRs. An organisation is a DGR 2 if its endorsement from the Tax Office states that the "Provision for gift deductibility" is "item 2 of the table in section 30-15 of the Income Tax Assessment Act 1997".
• DGR 2s must only provide funds to DGR 1s. A DGR 2 may not fund another DGR 2.

The information about whether an organisation is a DGR 1 or DGR 2 is only found on its certificate from the Tax Office and is not available on the Australian Business register.

To find out whether an organisation is a DGR, check the Australian Business Register at http://www.abr.gov.au/

For more information on endorsement as a DGR, see theTax Office's website.

All pages contained within "Deductible Gift Recipient"

There are 2 pages contained within this category.

A

• ATO Data: Deductible Gift Recipients

I

• Indigenous organisations - DGR and Philanthropic Funding