Having a ball at your expense

In 'The Charity Ball', Gary has forensically examined the processes followed by many charities and how they structure themselves for maximum benefit – particularly in terms of achieving deductible gift recipient (DGR) status.

The magic DGR acronym - and this is where the fun begins.

If an organisation is endorsed as a DGR as a whole, gifts to the whole organisation will be tax deductible. Alternatively, if an organisation is endorsed for a fund, authority or institution it operates, for example a public fund maintained by an organisation that is on the Register of Cultural Organisations, only gifts to that part of the organisation are tax deductible.

Currently there is an inquiry of the House of Representatives Standing Committee on the Environment, chaired by my parliamentary colleague the Member for Mitchell, Mr Alex Hawke, which has adopted an inquiry referred by the Minister for the Environment, asking the Committee to inquire into and report on the Register of Environmental Organisations. This inquiry is ongoing, however, it will only report on environment sector organisations.

In my view, political lobby groups generally, not just environmental organisations, should not be extended the benefit of having DGR status, especially where their activities have little to no relationship with what may have been their original charitable and/or philanthropic purposes.

And with this exact purpose in mind, I have recently written to the Prime Minister suggesting that he commission a broader inquiry examining the DGR status of all political lobby groups.

There needs to be clarity around these issues – not just for charities, but more importantly for donors.

We do not want to see a situation where scepticism as to the bona fides of charitable organisations leads to donor jaundice.

A good place to start in getting a better understanding of the current environment is with Gary's latest masterpiece – 'The Charity Ball'.