The United Nations General Assembly recognises this day as ‘International Day of Happiness’ and calls for a more inclusive, equitable and balanced approach to economic growth which promotes the happiness and well-being of all peoples.
To mark this significant day, we bring you important updates regarding the new ‘Community Charity’ deductible gift recipient (DGR) category. Community charities and foundations play a vital role in building thriving communities across Australia – making a real difference in people’s lives.
In this edition, we also provide important updates within the charity and not-for-profit (NFP) sector, including guidance and reminders from the Australian Charities and Not-for-profits Commission (ACNC) and the Australian Taxation Office (ATO).
Research and resources
Guidelines for the new ‘community charity’ DGR category now in force
As part of a major reform to create a more flexible and effective framework for successful community philanthropy in Australia, the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Act 2024 (Cth) was passed into law last year, creating the ‘Community Charity’ DGR category. The same legislation also required Treasury to draft and implement the guidelines to determine when such funds or entities are entitled to be endorsed as DGRs.
These guidelines came into force last month through the Taxation Administration (Community Charity) Guidelines 2025 (Cth). The new DGR category is a hybrid framework where a community charity has the flexibility to:
engage directly in its own charitable activities, maintaining full control over its operations and initiatives, and
support a broad range of activities within the same organisation, as long as those activities align with DGR categories.
This flexibility provides community charities with greater autonomy, allowing them to pursue multiple charitable goals under one umbrella, without the need to establish separate entities for each initiative. It is anticipated these significant reforms will boost social capital and grassroots giving through Australian community foundations.
Click here to access the Taxation Administration (Community Charity) Guidelines 2025 (Cth).
Charities and the Federal Election: the ACNC’s updated guidance on advocacy
With a federal election looming, charities may be considering how they can engage and participate in election discussions while complying with their requirements. Although charities cannot promote or oppose a political party or candidate, the sector plays a key role in advocating for causes and reform and can campaign on issues which align with their charitable purpose.
The ACNC has recently updated its ‘Charities, Campaigning and Advocacy’ guidance to outline key considerations when engaging in political discussions. This is essential reading for charities looking to participate in policy debate to ensure they do not risk non-compliance with their charity status.
You can access the ACNC’s updated guidance here: ACNC - Charities and the Federal Election: updated guidance on advocacy. You can also read our previous article on this topic ‘Let’s get political: when can charities partake in advocacy and campaigning activity?’
ACNC published a Statement of Commitment to Aboriginal and Torres Strait Islander peoples
In February 2025, the ACNC released a Statement of Commitment to Aboriginal and Torres Strait Islander peoples, detailing its commitment to reconciliation and its plans to implement the ATO’s Reconciliation Action Plan.
The ACNC recognises the important role of Aboriginal and Torres Strait Islander controlled charities in the provision of culturally appropriate services addressing the social and economic disadvantage experienced by many First Nations people.
To demonstrate this commitment, the ACNC has assured it will:
build its understanding and appreciation of First Nations cultures, governance and rights
collaborate with First Nations organisations, peak bodies and other regulators
strive to create an environment where Aboriginal and Torres Strait Islander employees thrive
foster accountability and transparency by employing various measures.
You can access the ACNC’s Statement of Commitment here: ACNC - Statement of Commitment to Aboriginal and Torres Strait Islander peoples.
Oxfam Australia’s enforceable undertaking with the Privacy Commissioner
Following the Oxfam Australia (Oxfam) data breach experienced in January 2021, the Privacy Commissioner accepted and published Oxfam’s enforceable undertaking on 20 December 2024.
In today’s digital economy, charities and NFPs regularly collect and handle large amounts of personal information. The Privacy Commissioner issued an important reminder for the sector with its privacy guidance for not-for-profits published late last year. The guidance includes expanded advice on security of information and steps NFPs can put in place to ensure compliance with their retention and destruction obligations.
Details of the Oxfam data breach investigation and enforceable undertaking were published on 20 February 2025 and can be accessed here: Office of the Australian Information Commissioner - Oxfam Australia's enforceable undertaking.
Announcements and reminders
It’s tax time – non-charitable NFPs are required to lodge a return with the ATO
Non-charitable NFPs with an active Australian Business Number and which have been self-assessing as income tax exempt must lodge an NFP self-review return for the 2023–24 income year by 31 March 2025. This annual reporting requirement aims to enhance transparency and integrity in the system by ensuring only eligible NFPs access income tax exemption.
NFPs with charitable purposes which meet the legal definition of a charity must register with the ACNC to be endorsed by the ATO for income tax exemption. If your NFP is not registered with the ACNC but you are considering whether it has charitable purposes, the ATO recommends you still complete the NFP self-review return by answering ‘yes’ or ‘unsure’ to the charitable purposes question. They will work with you and the ACNC after you submit the NFP self-review return to get your tax status and reporting obligations right going forward.
Find out if your organisation needs to lodge an NFP self-review return and about eligible income tax exempt entities here: ATO - Do you need to lodge an NFP self-review return?
Is your charity's Annual Information Statement overdue?
If your charity operates on a standard financial year (1 July to 30 June) and it has not submitted its 2024 Annual Information Statement (AIS), your AIS is now overdue and the ACNC has released a reminder for your charity to submit its AIS now to avoid potential penalties.
As a further reminder, charities which operate on a calendar year (1 Jan to 31 Dec), the 2024 AIS will be due on 30 June 2025.
If a charity does not submit its AIS on time, and takes no action to try and do so, the ACNC will publish a notice on the charity’s entry on the Charity Register that the reporting is overdue. The ACNC may also issue penalty notices if they find that a charity is deliberately not meeting its obligation to report. If a charity does not submit an AIS for two or more years, the ACNC will move towards revoking its charity registration.
More information regarding AIS due dates can be accessed here: ACNC - Annual information statement due dates.
Upcoming events and webinars
Event – Impact100 Sydney Campaign Launch 2025
Next week, Impact100 Sydney will launch its 2025 campaign with an event dedicated to exploring Sydney's most pressing social challenges and discussing how collective giving can drive meaningful change. This event aims to set the social sector's agenda for the year ahead.
Event details
Date: Thursday 27 March 2025
Time: 6:00pm – 8:00 pm AEDT
Venue: Gilbert + Tobin, L35, Tower Two International Towers, 200 Barangaroo Ave, Barangaroo
Tickets: $20 (all proceeds will support Impact100 Sydney's mission)
Registration: Click this link to register for the event.
The event will feature a panel of stakeholders who will be tackling the big questions regarding Sydney’s most pressing social challenges. Our very own Elizabeth Lathlean will be hosting the event.
Event – The Education Network’s 13th Annual Charities and Not for Profits Conference
TEN The Education Network’s two-day conference features expert speakers who will unpack the latest regulatory changes, offer strategies for strengthening governance, and share critical insights into financial sustainability and future-proofing operations within the charities and NFP sector.
Event details
Date: 15 - 16 May 2025
Venue: Marriott Hotel Melbourne or online
For legal practitioners: Earn nine CPD Units in Substantive Law for attending the one and half day conference. All delegates will receive a CPD Certificate confirming attendance.
Tickets: If you register and pay by 11 April 2025 you will pay only $1661 – a saving of $264 off the full price conference registration fee of $1925. Multiple registration discounts are also available.
Registration: Click this link to register for the conference.
Our very own Darren Fittler will be presenting at the conference regarding strategic mergers in the charities and NFP landscape. He will unpack key considerations for charities and NFPs exploring mergers, including when it is the right move, the benefits and challenges of merging and navigating competition law issues unique to the sector.