In this edition
We highlight the new data driven focus on volunteer run charities published by the Australian Charities and Not-for-profits Commission (ACNC), important reminders for deductible gift recipients (DGRs) approaching the end of transitional arrangements and fresh Australian Taxation Office (ATO) alerts aimed at safeguarding integrity in philanthropy. We also cover new ACNC transparency measures through de identified registration decision summaries.
We are also delighted to share Gilbert + Tobin continues to be ranked Band 1 by Chambers Asia-Pacific for Charities, with Darren Fittler maintaining a Band 1 ranking and Elizabeth Wighton recognised as Up and Coming.
We also bring you various sector updates including:
- A summary of the ACNC’s Charity by Numbers: The volunteer effect, spotlighting over 22,000 entirely volunteer run charities and the rebound in volunteering to near record levels.
- A practical reminder on DGR charity registration requirements and the status of transitional arrangements which ended on 14 December 2025, with steps for organisations needing to regularise endorsement.
- The ACNC’s publication of new de identified registration decision summaries, aimed at enhancing transparency and sector education.
- Draft tax determination released regarding the construction of benefits in the context of public and private ancillary funds.
Research and resources
ACNC publishes new report Charity by Numbers: The volunteer effect
On 10 December 2025, the ACNC released Charity by Numbers: The volunteer effect, a companion to the Australian Charities Report 11th Edition. The report shines a spotlight on more than 22,000 volunteer-run charities, representing around 43% of the sector. It also contextualises the strong rebound in volunteering reported in June 2025, with volunteer numbers returning close to an all‑time high at 3.77 million (an increase of almost 270,000 from the previous report).
See the full Charity by Numbers: The volunteer effect.
DGRs reminded of 14 December deadline
Legislative amendments made in September 2021 required non‑government DGRs to be registered as charities from 14 December 2021. While charity registration already applied to most general DGR categories, these changes extended the requirement to the remaining categories, except ancillary funds and entities specifically listed in tax law.
Transitional arrangements applied to DGRs endorsed as at 14 December 2021 and to certain pending applications. These included an automatic 12‑month general transition period (to 14 December 2022) and, in limited cases, an additional three‑year extension (application period now closed as of 14 December 2022). Where DGR endorsement has been revoked, the organisation must register as a charity with the ACNC before re‑applying for endorsement.
Learn more on the ATO website.
ACNC publishes new de-identified registration decision summaries
As part of its secrecy reforms, the ACNC is publishing additional information about its regulatory activities. In relation to registration activities, this includes de‑identified registration decision (DRD) summaries. The ACNC’s aim is to provide clearer insights into its work, improve transparency and deliver educational benefits to the sector.
View the DRDs on the ACNC website.
ATO focus on private ancillary funds integrity
The ATO has released a draft tax determination (TD 2025/D3) setting out the Commissioner’s view on when a private or public ancillary fund is taken to provide a ‘benefit’ for the purposes of the Private Ancillary Fund Guidelines 2019 (Cth) and the Public Ancillary Fund Guidelines 2022 (Cth). Since an ancillary fund is a charitable trust established solely to support eligible DGRs, any gift benefiting someone other than a DGR may be cancelled by the ATO and expose the fund to enforcement action.
Notwithstanding the caution, ancillary funds remain a legitimate and tax‑effective means of separating the timing of an income tax deduction from the timing of charitable grants. Ensuring robust documentation, arm’s‑length terms and genuine market‑value pricing will help mitigate ATO scrutiny and reduce the risk of deductions being disallowed.
Submissions on the draft are open until 30 January 2026, with instructions for lodging feedback set out at paragraph 55 of the determination.
For further information, view the ATO’s draft taxation determination ‘Income tax: when does a private or public ancillary fund 'provide' a 'benefit'?’
We acknowledge and pay respect to the custodians of the lands upon which our offices are located – the Gadigal people (Sydney), the Wurundjeri Woi-wurrung people (Melbourne) and the Whadjuk Nyoongar people (Perth), as well as all custodians across this nation.
We also recognise the continuing contribution Indigenous charities, not-for-profit organisations and their supporters, together with all First Nations Peoples, provide in addressing the unique systemic disadvantages arising from historical, societal and structural inequalities. It is an honour and a privilege to support this important work and we thank our First Nations clients, partners and friends for their generosity in sharing their knowledge, culture and experiences with us.