Eligibility of your organisation to receive Donations

Under the terms of the deed of The Karma Currency Foundation and Australian taxation laws, The Karma Currency Foundation can only forward donations to organisations with BOTH Deductible Gift Recipient (DGR) Item 1 and Tax Concession Charity (TCC) status.

DGR requirements

There are two distinct types of DGR. This is identified on an organisation's notice of endorsement from the Australian Taxation Office as either a deductible gift recipient item 1, or item 2.

The Karma Currency Foundation is limited to funding DGR's where the "provision for gift deductibility" is "item 1 of the table in section 30-15 of the Income Tax Assessment Act 1997".  That is, we can only pass on donations to organisations endorsed as DGR Item 1.

The Karma Currency Foundation is a public ancillary fund and cannot make grants to other public ancillary funds (PuAFs) or to private ancillary funds (PAFs). If your notice of endorsement as a DGR states the provision for gift deductibility is item 2 of the table in section 30-15 of the Income Tax Assessment Act 1997, your organisation will be an ancillary fund and therefore not entitled to receive grants from us.

An organisation's name or ABN can be used to search the Australian Government's online Australian Business Register to check details of its DGR and TCC endorsements.

Please also note the following regarding DGR status:

Organisations must be EITHER endorsed by the ATO as a DGR item 1, or they must be specifically named in Subdivision 30-B in the Income Tax Assessment Act 1997 as being a DGR.

If an organisation uses more than one name (for example, a legal name and a trading name), then your charity profile to receive donations must be made in the name which holds the correct DGR status.

Some organisations also hold DGR status only for a fund which they operate, or one aspect of their activities. Applications from such organisations must relate to the fund or activities for which DGR status has been endorsed or approved.

More information about DGR and TCC status can be obtained from the ATO Non-Profit Organisations website.

** Auspicing

Auspicing refers to the practice of an ineligible organisation (one that does not have DGR and TCC status) applying to the Foundation via an eligible organisation to receive donations. Auspicing arrangements are excluded under the Foundation's guidelines. The organisation applying to the Foundation to receive funding must be the organisation that will run the project or program for which the donations are being sought.