Charity Registration vs DGR Endorsement: What Is the Difference and Which Do We Need?
Last updated: 25 October 2026.
“We are a registered charity, so why can’t donors claim a deduction?” is one of the most common questions we hear from new boards and treasurers. The answer is that there are two separate statuses with two different regulators. Charity registration is with the Australian Charities and Not-for-profits Commission (ACNC). Deductible gift recipient (DGR) endorsement is with the Australian Taxation Office (ATO). You can have the first without the second, and for most organisations you need the first before you can get the second.
This is general information on how the two regimes work for organisations (checked against ACNC and ATO pages on 25 October 2026). It is not legal advice and does not cover any individual’s income tax position. For a shorter explanation aimed at the question “does registration make donations deductible?”, see our article on ACNC registration and tax-deductible donations.
The short version: registration says “this organisation is a charity”. Endorsement says “gifts to this organisation, or this fund, can potentially be claimed by donors”. The ACNC registers; the ATO endorses.
Side by side
| ACNC charity registration | DGR endorsement | |
|---|---|---|
| Regulator | ACNC | ATO (Treasury oversees specific listings by name in tax law) |
| What it gives you | Charity status for Commonwealth purposes; the gateway to ATO charity tax concessions such as income tax exemption, GST concessions and the FBT rebate | The ability to receive gifts that donors can potentially claim as deductions |
| Is it automatic? | No. You must meet the ACNC’s eligibility criteria | No. You must fit a specific DGR category and meet its conditions |
| Required for the other? | Not required for DGR if you are a government organisation, a giving (ancillary) fund or listed by name in tax law; otherwise yes | Not required for registration |
| Who is covered | The registered entity | The whole entity, or just a named fund, authority or institution it operates |
| Ongoing obligations | Annual Information Statement, financial reporting by size, Governance Standards, External Conduct Standards if operating overseas, record keeping | DGR-specific conditions such as receipts, gift fund rules, keeping records of DGR transactions, revocation and winding-up clauses |
| How to check | ACNC Charity Register | ABN Lookup, under “Deductible gift recipient status” |
The relationship between the two
Under legislation amended in September 2021, non-government DGRs have been required to be registered charities since 14 December 2021. The ATO says charity registration was already a requirement for most general DGR categories, and the amendment extended it to the remainder, with exceptions for ancillary funds and DGRs that are specifically listed in tax law. The ACNC notes the same exceptions, and also lists government organisations. Existing DGRs had transitional arrangements, which the ATO says included an automatic 12-month general transition period to 14 December 2022.
The reverse does not hold. The ACNC says many DGR categories are specific and available only to certain charities. For example, public benevolent institutions (PBIs) and health promotion charities (HPCs) each have their own DGR category, and registration with the ACNC as a PBI or HPC generally provides access to DGR endorsement from the ATO. A charity registered under another subtype, such as advancing education or advancing religion, must still fit a category in the ATO’s DGR table before it can be endorsed.
Who assesses what
The ACNC’s factsheet notes that from 1 January 2024, responsibility for assessing DGR eligibility for cultural organisations, environmental organisations, harm prevention charities and developing country relief funds or organisations transferred to the ATO. Specific listings by name in the tax law involve federal Treasury. If you are uncertain which category might apply, the ACNC points charities to the not-for-profit law sector’s DGR tool for an indication of eligibility, and the ATO’s DGR table sets out the categories and their requirements.
What DGR endorsement requires, beyond being a charity
- A matching DGR category. You apply by item number from the ATO’s DGR table, and the ACNC says the application also asks the date from which you want endorsement.
- In Australia. The ATO says all DGRs must be established and operated in Australia. The purposes and beneficiaries need not be in Australia, except for certain public funds the ATO lists.
- Governing document clauses. The ACNC says your governing document needs a revocation clause, and you provide the clause number in your application. The ATO also requires transfer of surplus gifts and deductible contributions to another DGR when the organisation is wound up or endorsement is revoked.
- A gift fund, if only a fund is endorsed. The ATO says to be endorsed for the operation of a fund, authority or institution, the organisation must maintain a gift fund for the principal purpose, which receives all gifts and deductible contributions for that purpose and no other money or property. An exception applies where the organisation is already endorsed as a whole.
- Proper receipts and records. A DGR is not required to issue receipts, but those it does issue must carry the required details, and DGRs must keep records explaining transactions relevant to their DGR status.
How to apply
- Not yet registered: you can apply for charity registration and DGR endorsement together on the ACNC registration form, selecting whether you seek endorsement as a whole or for a fund, authority or institution. The ACNC passes the information to the ATO if registration is successful, and the ATO makes the endorsement decision.
- Already registered: apply directly to the ATO using its DGR application form. Use a separate application for each fund, authority or institution.
Other concessions are separate again
DGR endorsement is not the same as income tax exemption, GST concessions or FBT concessions. The ACNC explains that all registered charities can apply for income tax exemption, GST concessions and an FBT rebate, whereas an FBT exemption is for selected charities and DGR endorsement requires a category match. Each is decided by the ATO, and being granted one does not guarantee another.
Which do we need?
- You need registration if you want to be a charity for Commonwealth purposes and access ATO charity tax concessions.
- You need DGR endorsement if donors expect to claim a deduction for their gifts, or if your funders or fundraising plans depend on it. Think about whether a category fits before you plan fundraising around deductibility.
- You may need neither as an incorporated association or other not-for-profit that is not a charity. That decision has legal consequences, so take advice from a lawyer who knows charity and not-for-profit law.
What it means for your bookkeeping and reporting
Whichever you hold, your records should reflect it. Registered charities keep the records the ACNC requires and report annually, as covered in our guides to ACNC financial reports and audits and reviews. DGRs add a layer: income categories that distinguish gifts from event tickets, raffles and fees, gift fund tracking where relevant, and receipts that meet the ATO’s requirements.
How we help
We support Sydney charities and not-for-profits with bookkeeping, funds and grants tracking and ACNC-ready reporting, so your records match the status you hold. Try our free Charity Health Check, see our charities and NFPs page, or email info@guidancegrowth.com.au. Decisions on DGR eligibility sit with the ATO, and legal questions about structure are for a lawyer.
Frequently asked questions
What is the difference between charity registration and DGR endorsement?
Charity registration is with the ACNC and makes an organisation a registered charity. DGR endorsement is with the ATO and allows gifts to potentially be claimed by donors. You can be registered without being a DGR.
Do I need to be an ACNC-registered charity to be a DGR?
Generally yes. Since 14 December 2021, non-government DGRs must be registered charities, except ancillary funds and DGRs listed by name in tax law. Government organisations are also exempt, according to the ACNC.
Is every registered charity eligible for DGR endorsement?
No. The ACNC says not all charities are eligible. A charity must fit a specific DGR category in the ATO’s table. PBIs and HPCs have their own categories.
Can we apply for registration and DGR endorsement at the same time?
Yes. If you are not yet registered you can apply for both on the ACNC registration form, and the ACNC passes the information to the ATO, which decides on endorsement.
Can only one of our programs be a DGR?
Yes. The ACNC and ATO explain that a fund, authority or institution can be endorsed instead of the whole entity. A fund must have a gift fund that receives the gifts and no other money or property.
Where do I check whether we have DGR status?
Search your name or ABN on ABN Lookup and look under ‘Deductible gift recipient status’. The ACNC Charity Register also links to it.
Sources and further reading
- ACNC: Deductible gift recipients (DGR) and the ACNC (checked 25 October 2026)
- ACNC: Charity tax concessions (checked 25 October 2026)
- ATO: Deductible gift recipient eligibility (checked 25 October 2026)
- ATO: Apply for DGR endorsement (checked 25 October 2026)
- ATO: DGRs required to be a registered charity (checked 25 October 2026)
- ATO: Meeting the ‘in Australia’ condition (checked 25 October 2026)
- ATO: Endorsement as a whole (checked 25 October 2026)
- ATO: Endorsement for the operation of a fund, authority or institution (checked 25 October 2026)
- ATO: Receipts for DGRs (checked 25 October 2026)
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.