Does ACNC Registration Automatically Make Donations Tax Deductible? No, and Here Is Why

Last updated: 25 October 2026.

Many new charity boards assume that once they are on the ACNC Charity Register, donors can claim their gifts as a tax deduction. They cannot, at least not automatically. Registration with the ACNC and endorsement as a deductible gift recipient (DGR) by the Australian Taxation Office (ATO) are two different things, run by two different regulators. This article explains the difference in practical terms, how to check any charity’s status, and what it means for how you ask for, receive, receipt and record donations.

It is general information about how the rules work for charities (checked against ACNC and ATO pages on 25 October 2026). We do not give advice about any individual donor’s income tax position. A donor who wants to know whether and how much they can claim should check with the ATO or a registered tax practitioner.

The short version: no. The ACNC registers charities. The ATO endorses DGRs. A donation is only potentially deductible if it is a genuine gift made to an organisation (or fund) that is endorsed or listed as a DGR at the time of the gift. The ACNC and the ATO both say that not all charities are DGRs.

Who does what

ACNC registrationDGR endorsement
Who decidesThe Australian Charities and Not-for-profits CommissionThe Australian Taxation Office (the ACNC says it does not endorse DGRs)
What it meansThe organisation is a registered charity for Commonwealth purposesGifts to it can potentially be claimed as a deduction by donors
Automatic?No: you apply and meet eligibility criteriaNo: you must fit a specific DGR category and meet its conditions

The ACNC’s factsheet on DGRs puts it plainly: the ACNC is responsible for registering organisations as charities, the ATO is responsible for endorsing organisations as DGRs, and not all charities are eligible for DGR endorsement. The ACNC’s public guidance repeats that the ACNC does not endorse organisations as DGRs.

Why registration is still a big step

ACNC registration is a prerequisite for several things, even though it does not make donations deductible. The ACNC says organisations must be registered with it to apply for charity tax concessions from the ATO. All registered charities can apply for income tax exemption, GST concessions and a fringe benefits tax rebate, and certain charities (such as public benevolent institutions and health promotion charities) can apply for the fringe benefits tax exemption. The ATO still makes the decision on each concession. Since 14 December 2021, non-government DGRs generally also have to be registered charities, with exceptions for ancillary funds and DGRs listed by name in tax law. So for most organisations, ACNC registration is a step on the path to DGR endorsement, not the destination.

What makes a donation potentially deductible

The ATO’s guidance for donors lists the conditions. To be deductible, a gift or donation must:

  • be made to an organisation that has DGR status at the time of the gift;
  • be a genuine gift, meaning the donor voluntarily transfers money or property without receiving or expecting a material benefit in return;
  • be money or property (including financial assets such as shares); and
  • comply with any relevant gift conditions that the tax law adds for some DGRs.

The donor must also have a record of the donation, such as a receipt. The ATO says that purchases and benefit-bearing payments are generally not gifts: raffle or art union tickets, items with an advertised price, membership fees and gifts to family and friends are examples it lists as not claimable, and it notes that many social media and crowdfunding campaigns are not run by DGRs, so donations to them are not deductible. If a donor receives a material benefit in return for a payment to a DGR, such as a ticket to a fundraising dinner, the ATO treats it as a contribution and extra conditions apply.

How to check a charity’s DGR status

  1. Find the charity on the ACNC Charity Register and click the “Will my donation be tax deductible?” icon in the top right of its page.
  2. That takes you to the charity’s ABN Lookup page. Scroll to the heading “Deductible gift recipient status”.
  3. If it shows endorsed or listed, the organisation has DGR status. If it shows not entitled, a gift to it is not deductible.

The ATO also notes the status must be in place at the time the gift is made. A charity can check its own status the same way, and should do so before putting “tax deductible” on a website, appeal or newsletter.

A fund can be endorsed instead of the whole charity

The ACNC explains that a charity can be endorsed as a whole, or that a fund, authority or institution it operates can be endorsed instead. If only a fund is endorsed, only donations to that fund are deductible. For a fund, the ATO requires a gift fund that is maintained for the principal purpose of the fund, that receives all gifts and deductible contributions for that purpose, and that receives no other money or property. That has a direct bookkeeping consequence, covered below.

What to tell your supporters

  • If you are a DGR: you can say gifts are tax deductible, but be precise about what is covered (the whole charity or a named fund) and do not suggest payments that give a benefit, such as event tickets or raffle entries, are fully deductible.
  • If you are registered but not a DGR: say you are a registered charity, and do not say donations are tax deductible. You might say “donations are not tax deductible” so nobody is surprised.
  • If you have applied: do not promise deductibility until the ATO has endorsed you, and do not assume a start date. The application form asks the date from which you seek endorsement, and the ATO decides.

Receipts: what a DGR must include

The ATO says a DGR does not have to issue a receipt, but if it does, a receipt for a gift must include the organisation’s name (or an acceptable abbreviation), its ABN, and a note that the receipt is for a gift. The ATO warns that if receipts do not include the required information, DGR endorsement may be revoked. Receipts for fundraising event contributions and auction purchases have extra required details, including the GST-inclusive market value of what the person received. If you choose not to issue receipts, the ATO suggests telling donors they can use other records, such as bank statements.

What this means for your books

If your charity is a DGR, the way you record income matters, not just the way you report it:

  • Separate true gifts from everything else. Donations, ticket sales, raffles, sponsorship, merchandise and grants are different kinds of income with different tax and receipt treatment. Give each its own account in your chart of accounts.
  • Track gift fund money separately. If only a fund is endorsed, you need to be able to show that gifts for its purpose went in and that other money did not.
  • Keep the records behind each receipt. The ATO requires DGRs to keep records that explain transactions relevant to their DGR status.
  • Know your reporting. Donations feed into your annual financial reports and AIS. See our guides to the financial reports a charity must submit to the ACNC and the 2026 AIS checklist.

If you want to become a DGR

If you are already an ACNC-registered charity, you apply directly to the ATO using its DGR application form. If you are applying for ACNC registration, you can apply for DGR endorsement on the ACNC registration form. Either way you will need to identify the DGR category that fits, and your governing document must include a revocation clause. Apply separately for each fund, authority or institution. Not every charity has a category it can fit, so find the category in the ATO’s DGR table before you invest time in an application. Our comparison of charity registration and DGR endorsement goes through the differences in more detail.

How we help

We help Sydney charities and not-for-profits keep clean records of donations, funds and grants, so that receipts, reports and ACNC filings line up. Start with our free Charity Health Check, read about our charities and NFPs page, or email info@guidancegrowth.com.au or use our contact page. We do not decide DGR eligibility. The ATO does.

Frequently asked questions

Does ACNC registration make donations tax deductible?

No. The ACNC registers charities, and the ATO endorses deductible gift recipients (DGRs). Only gifts to an organisation or fund with DGR status at the time of the gift can potentially be deductible, and the ACNC says not all charities are DGRs.

How can I check whether a charity is a DGR?

Find the charity on the ACNC Charity Register and click the ‘Will my donation be tax deductible?’ icon, which takes you to its ABN Lookup page. Look under ‘Deductible gift recipient status’.

Can our charity say donations are tax deductible once we are registered with the ACNC?

Not unless the ATO has endorsed you, or a specific fund, as a DGR. If you are registered but not a DGR, say you are a registered charity and do not describe donations as tax deductible.

Are raffle tickets and fundraising dinner tickets tax deductible?

The ATO says raffle tickets and items with an advertised price are not deductible gifts. If a person receives a material benefit, such as a dinner ticket, it is treated as a contribution with extra conditions. Check the ATO’s guidance on contributions.

Does a DGR have to issue receipts?

No, but if it does, a gift receipt must include its name, ABN and a note that it is for a gift, according to the ATO. Missing information can put endorsement at risk.

Can only one fund of a charity be endorsed?

Yes. The ACNC explains that a charity can be endorsed as a whole, or just a fund, authority or institution it operates. If only a fund is endorsed, only donations to that fund are deductible.

Sources and further reading

This article is general information, not personal advice. Rules and dates can change, so check ato.gov.au or acnc.gov.au for the latest, or speak to us about your situation.

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