Thousands of Australian charities are missing out on tax-deductible donations due to a complex and outdated system that fails to reflect how many charities operate today.
From organisations tackling emerging social issues to charities working across multiple causes, many are locked out of vital fundraising opportunities because they cannot access Deductible Gift Recipient (DGR) status.
That’s why Australian Communities Foundation’s (ACF) Impact Fund has committed a $10,000 Agile Grant to support Justice Connect’s Unlock DGR campaign, which is advocating for a simpler and fairer system.
DGR status enables charities to receive tax-deductible donations, making it a critical pathway to philanthropy and community giving. Yet around half of all registered Australian charities are currently excluded because of a complex system that has evolved haphazardly over decades into more than 50 confusing categories and restrictive eligibility rules. As a result, many charities delivering valuable community outcomes face unnecessary barriers when seeking support.
The Unlock DGR campaign is calling for reform based on recommendations from the Productivity Commission’s Future Foundations for Giving report, which outlines a pathway to a simpler, fairer and more modern system that would make DGR eligibility accessible to most charities.
The campaign also aligns with ACF’s broader efforts to expand access to philanthropy. Through its new Community Charity Trust, ACF has helped direct funding to groups that may not qualify for DGR status under today’s rules, demonstrating both the community need and donor appetite for more accessible giving pathways.
“We’ve seen through the Community Charity Trust that there is strong donor appetite to support organisations doing important charitable work, even when they don’t have DGR endorsement,” said Andrew Binns, Chief Executive Officer of Australian Communities Foundation. “Unlock DGR is an opportunity to modernise the system so more charities can access funding directly and more donors can support the causes they care about.”
The grant is being awarded through the Impact Fund’s Agile Grants program, which supports timely opportunities that advance Australian Communities Foundation’s vision for a thriving and inclusive Australia. While the Fund’s annual flagship grant supports long-term solutions to major national challenges, Agile Grants enable the Fund and its supporters to respond quickly to emerging opportunities and critical moments for reform.
“The current DGR system creates unnecessary barriers for charities doing important work in our communities,” said Laura Mannix, Philanthropy Lead at Australian Communities Foundation. “Unlock DGR is about creating a fairer environment for charitable giving so more organisations can access the resources they need to deliver impact. This is exactly the kind of systems-change initiative the Impact Fund exists to support because reform at this level has the potential to benefit organisations across the sector and the communities they serve.”
Join us to unlock funding for more charities
Australian Communities Foundation is now inviting its giving community to join the effort and help raise an additional $30,000 to support the campaign.
Reforming the DGR system won’t affect just one organisation. It has the potential to open new fundraising opportunities for thousands of charities and make it easier for Australians to support the causes they care about. Through the Impact Fund, ACF is helping build momentum for that change and inviting Fundholders to be part of it.
If you’d like to contribute, you can request a grant from your Fund here.
