Charitable organisations that have Deductible Gift Recipient (DGR) status are eligible to apply for funding from PAFs provided they are an Item 1 DGR, informally known as a ‘doing’ DGR. These are organisations which carry out the hands-on work; whilst Item 2 DGRs are known informally as ‘giving’ DGRs, which make or collect money in order to give it away. PAFs cannot fund Item 2 DGRs.
You can check which endorsement your organisation has by checking your ‘Endorsement as a deductible gift recipient’ notification from the ATO. The information is located in the section ‘Provision for gift deductibility’. If it states “Item 1 of the table in section 30-15 of the Income Tax Assessment Act 1997” then your organisation is an Item 1 DGR and you are eligible for grants from PAFs.
This can also be checked on-line at the Australian Business Register (www.abr.gov.au). Follow the link to ABN Look Up and use the organisation’s ABN number to access information. Under Other Registrations see Deductible Gift Recipient, the listing will specify your item number.
Not being endorsed as a DGR Item 1 may mean your organisation is missing out on a vast pool of funding opportunities.
If you want to find more donors and raise money from Private Ancillary Funds, subscribe to the Complete Guide to Australia’s Private Ancillary Funds (PAF Guide).
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