Huge boost to community giving

A new category of Deductible Gift Recipient 1 (DGR1) status has been established which will enable community foundations to support more and better giving across Australia. Community foundations pool donations from individuals, businesses and institutions to fund local initiatives and address community needs. This change allows those contributing to such foundations to access tax deductions and has been made possible via a new Federal Government legislative instrument.

This outcome is the result of more than a decade of advocacy and is in line with several recommendations made in the July 2024 report by the Productivity Commission on its review of giving in Australia, “Future Foundations for Giving”. The reforms were led and delivered by the Assistant Minister for Charities, the Hon Andrew Leigh MP and have had bipartisan support, given their origins in a commitment made by the previous Australian Government in the 2022 Budget.

Speaking at an event to celebrate the change, Ian Bird, CEO of Community Foundations Australia outlined the significant benefits associated with this change:

“Australian community foundations collectively steward $650 million in community assets, and by 2028 that figure is projected to surpass $1 billion. We have 50 community foundations operating across the country, with another 74 communities reaching out to us wanting to start their own foundation. That makes it [the] fastest-growing community foundation movement globally.

“The significance of these reforms can’t be overstated. Community assets are now more likely to stay in that community and become a lever to unlock all sorts of other community resources – networks, trust, new ideas and aspirations. Community foundations provide local people with a way to build community capacity and social capital over the long-term.”

This new category is likely to change the landscape of giving in Australia significantly by providing another avenue for Australians to make a contribution that helps to better our society.

Thinking of giving to support your local area or a special community? Click on here to find a community foundation near you.

To read more, see Philanthropy Australia’s announcement of the change, from which the content for this piece was sourced.