Gov aims to reduce red tape for NFP sector
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In recognition of government assistance and the benefits deductible gift recipient (DGR) organisations provide, the government wants to ensure that compliance arrangements support continued trust and confidence in the not-for-profit (NFP) sector, while also minimising the burden of red tape.
A discussion paper outlining a number of proposals to strengthen DGR governance arrangements, reduce administrative complexity and ensure that an organisation’s eligibility for DGR status is up to date is now available for comment.
There are around 28,000 DGR organisations in Australia. DGR status entitles donors to claim tax deductions on their donations. These tax concessions are in excess of $1.3 billion per year and are said to be a significant part of the government’s efforts to encourage philanthropy and provide support for the NFP sector.
“The government wants to reduce red tape and improve governance, to ensure the public continues to have confidence in Deductible Gift Recipient (DGR) organisations,” said a spokesperson for the Acting Minister for Revenue and Financial Services.
“The majority of DGR organisations are endorsed in perpetuity with self-assessment, no regular review and many have limited reporting requirements.”
The government encourages all interested parties to make a submission to the discussion paper by 14 July 2017.
