Charities are governed by the Charities Act 2013 (Cth) (the Act) and for an organisation to be a charity, it must have a ‘charitable purpose’ as defined by section 12 of the Act. ‘Advancing health’ is a charitable purpose under the Act. DGR (deductible gift recipient) endorsement is attractive to many people wishing to set up a health charity. Anyone who donates to a charity which is DGR endorsed or otherwise endorsed by the ATO can receive income tax exemptions, and the charity itself can receive GST charity concessions, fringe benefit tax (FBT) rebates and FBT exemptions. This is a significant advantage if you’re trying to establish a charity from the ground up.

Australian Taxation Office Endorsement

The ATO doesn’t just endorse organisation for DGR status – the ATO also endorses organisations for the Tax Concession Charity (TCC) endorsement.

TCC is an endorsement where an organisation can access charity tax concessions (e.g. income exemption, GST concessions and FBT concessions.

DGR endorsement makes an organisation eligible to receive tax-deductible gifts and tax-deductible contributions. This means that the person or organisation who donated can claim a tax deduction on their income tax return.

DGR Endorsement

While your charitable health organisation might have a charitable purpose under the Act and be able to be registered with the ACNC, this does not necessarily mean it will be eligible for DGR endorsement with the ATO.

If you a charity which advances health, to receive DGR endorsement you must fall within one of the categories listed by the ATO as eligible for endorsement.

The categories are:

  • Public hospitals
  • Hospitals carried on by a society or organisation
  • Public funds for hospitals
  • Public authority for research
  • Public institution for research
  • Registered health promotion charity
  • Public ambulance services
  • Public funds for public ambulance services.

Is your organisation a public ambulance service? Is it a public fund for a hospital? The categories listed by the ATO as eligible for DGR endorsement are extremely limited. If you’re intending on setting up a charity and want to rely on tax deductible gifts receiving due to your DGR endorsement, you should assess your funding model to determine whether the charity has other funding options. As demonstrated by the list of categories, not every health charity can be registered for DGR.

Key Takeaways

In summary, an educational charity registered with the ACNC is not guaranteed DGR endorsement. Organisations such as public hospitals and ambulance services are eligible, but if your organisation falls outside these categories, then it might be difficult to receive DGR endorsement. Review your funding model to ensure that your charity can survive without receive either DGR or TCC from the Australian Tax Office. Receiving these endorsements should be a bonus, but should not be relied upon, if you are establishing a charity.

If you have any questions about obtaining DGR status, see the ACNC DGR Factsheet.

COVID-19 Business Survey
LegalVision is conducting a survey on the impact of COVID-19 for businesses across Australia. The survey takes 2 minutes to complete and all responses are anonymous. We would appreciate your input. Take the survey now.

About LegalVision: LegalVision is a tech-driven, full-service commercial law firm that uses technology to deliver a faster, better quality and more cost-effective client experience.

The majority of our clients are LVConnect members. By becoming a member, you can stay ahead of legal issues while staying on top of costs. For just $199 per month, membership unlocks unlimited lawyer consultations, faster turnaround times, free legal templates and members-only discounts.

Learn more about LVConnect

Chloe Sevil
Need Legal Help? Get a Free Fixed-Fee Quote

If you would like to receive a free fixed-fee quote or get in touch with our team, fill out the form below.

  • By submitting this form, you agree to receive emails from LegalVision and can unsubscribe at any time. See our full Privacy Policy.
  • This field is for validation purposes and should be left unchanged.
Our Awards
  • 2019 Top 25 Startups - LinkedIn 2019 Top 25 Startups - LinkedIn
  • 2019 NewLaw Firm of the Year - Australian Law Awards 2019 NewLaw Firm of the Year - Australian Law Awards
  • 2020 Fastest Growing Law Firm - Financial Times APAC 500 2020 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review 2020 AFR Fast 100 List - Australian Financial Review
  • 2020 Law Firm of the Year Finalist - Australasian Law Awards 2020 Law Firm of the Year Finalist - Australasian Law Awards
  • Most Innovative Law Firm - 2019 Australasian Lawyer 2019 Most Innovative Firm - Australasian Lawyer
Privacy Policy Snapshot

We collect and store information about you. Let us explain why we do this.

What information do you collect?

We collect a range of data about you, including your contact details, legal issues and data on how you use our website.

How do you collect information?

We collect information over the phone, by email and through our website.

What do you do with this information?

We store and use your information to deliver you better legal services. This mostly involves communicating with you, marketing to you and occasionally sharing your information with our partners.

How do I contact you?

You can always see what data you’ve stored with us.

Questions, comments or complaints? Reach out on 1300 544 755 or email us at

View Privacy Policy