DGR Reform
The Humanist Society stands in solidarity with Justice Connect to support the reform of Australia’s Deductible Gift Recipient (DGR) status, which enables charities to access critical funding.
Latest Campaign update
Not-for-profit and community organisations play an essential role in building a just, inclusive, and caring society, but Australia’s current rules around DGR status are holding many of these organisations back. Under the existing system, roughly half of all registered charities – including Humanists Victoria – are excluded from DGR status. This means they, and we, miss out on vital philanthropic support, grants, and tax-deductible donations.
History and Context
The current system is especially unfair for small or grassroots charities and community groups, as many are volunteer-run, resource-limited, and doing important work across multiple social issues.
Yet the complex DGR categories, heavy administrative burden to submit an application for DGR status, and narrow eligibility rules often prevent them from being endorsed. For those charities and community organisations that don’t qualify for DGR, everyday generosity becomes much harder to secure. That means less community support, fewer resources for vital services, and lost opportunities for social impact.
The Unlock DGR campaign by Justice Connect calls for urgent reform of Australia’s DGR system so it works fairly for all charities.
Key reforms include:
- Expand DGR eligibility: Allow most charities registered with the Australian Charities and Not‑for‑profits Commission (ACNC) to access DGR status, so long as they use donations for public-benefit activities
- Simplify and modernise rules: Replace the current over 50 confusing categories with a clear system that reflects how charities actually operate today.
- Cut red tape and administrative burden: Remove overly complex eligibility tests and reduce legal and administrative costs, so that small and volunteer-run charities can realistically apply without needing expensive experts.
- Support a modern and diverse charity sector: Recognise the value of organisations working across multiple issues like social welfare, environment, community cohesion, arts and mental health, rather than just the current narrowly defined categories. A reformed system would reflect today’s community needs and expectations.
If the DGR system is reformed:
- More charities will be able to access funding, donations and philanthropic support which will strengthen their sustainability and reach.
- Philanthropy and community giving will be more inclusive and effective, enabling support for a diverse range of social needs.
- Charities will spend less time and money on compliance and application paperwork, which will free up resources to focus on their community impact.
- The system will better reflect modern values and social realities to empower community organisations to respond to complex challenges like cost-of-living pressures, mental health, environmental crises, homelessness, social exclusion, and more.
Why the Humanist Society supports this
As Justice Connect notes – there is already a solution in place. The Productivity Commission were tasked with investigating the current philanthropy landscape with a view to DGR reform. In July 2024 their Future Foundations for Giving report was published. Humanists Victoria President Dr Heidi Nicholl attended and addresses one of the public consultations sessions arguing strongly for reform.
As humanists, we value fairness, justice, compassion, and community, and we know that many charitable and community organisations embody those values in practical, everyday work. We believe a modern, fair and inclusive tax-deduction system should support, not restrict, all the many Australian organisations working to improve the lives of others.
By standing in solidarity with Justice Connect, we support those who deliver real impact on the ground. We urge the Australian Government and regulatory authorities to simplify and expand access to DGR status, so that generosity, goodwill, and social innovation can thrive.
To learn more, please see the resources below: