In this edition
We explore the latest developments shaping the not-for-profit and charity landscape.
Our feature article examines 'community charities', a new DGR category introduced in mid-2024 that remains relatively unfamiliar to many in the sector. We explore what sets community charities apart from existing ancillary fund structures, the specific eligibility criteria and guidelines that apply, and key considerations for organisations navigating this new hybrid model. With 38 organisations now named in the ministerial declarations, understanding this category’s unique combination of funding and direct charitable activity is essential for those seeking to leverage its potential.
Read our article Deductible gift recipient series – community charities.
Additional developments explored include:
- DGR reforms – Treasury has announced significant changes to public and private ancillary funds, now renamed ‘giving funds’, including increases to minimum annual distribution rates for giving funds to 6% of net assets, with a two-year transition period. However, the reforms do not address broader DGR reform, which many in the sector consider overly complex and restrictive.
- ACNC registration summaries update – The ACNC has updated its library of de-identified charity registration decision summaries, providing transparency into its assessment processes. Recent examples cover incidental purposes, private benefit issues and proprietary company charity registration requirements.
- Boards with Purpose podcast – The Australian Institute of Company Directors (AICD) has launched a new monthly podcast – Boards with Purpose. In conversation with AICD NFP Sector lead Phil Butler, guests share their purpose-driven insights and experiences to guide, inspire and inform those working within or alongside the NFP sector.
As always, please reach out if we can support you as you pursue your purpose.
Happy reading!
DGR reforms: increase in minimum yearly contributions for private and public ancillary (giving) funds and introduction of 34 new ‘community charities’
On 26 February 2026, Treasury announced significant reforms to public and private ancillary funds aimed at addressing its broader objective of doubling philanthropic giving in Australia by 2030.
- Renaming public and private ancillary funds to ‘giving funds’, with a view to better reflect the core purpose of these structures to distribute funds to eligible charities rather than to accumulate capital over time.
- Increasing the minimum annual distribution rate for giving funds to 6% of net assets. The new rate will apply from the first financial year following legislative amendment, with existing giving funds given a two-year transition period before they are required to meet the new distribution rate. The minimum annual distribution rate for:
- private giving funds (formerly private ancillary funds) is currently 5%
- public giving funds (formerly public ancillary funds) is currently 4%.
- Allowing giving funds to ‘smooth’ their minimum distribution obligations over a three-year period, to support large projects with charities and more strategic giving.
- Declaring 34 new community charities as eligible DGR recipients, with listed organisations spanning education programs, mental health services, social inclusion initiatives, environmental sustainability projects, disaster recovery efforts and other local priorities (a full list of the new community charities is contained in Treasury’s announcement here).
For more on what community charities are and how they differ from traditional giving fund structures, see our feature article above.
These reforms were announced as a response to recommendations of the Productivity Commission’s Future Foundations for Giving report in July 2024. However, the change to the minimum distribution is unlikely to significantly increase support for charities because, as the government notes, around two-thirds of public giving funds, and around half of private giving funds, already distributed more than 6% of net assets in recent years.
Many in the sector have highlighted that the changes fall short of the significant DGR reform that had been hoped for, urging the government to act on broader changes to the regime. With fewer than half of Australian charities eligible for DGR status under a system increasingly seen as outdated and overly complex, sector leaders argue that raising distribution rates alone offers limited benefit. The Productivity Commission urged broader DGR reform in its report, yet these recommendations remain sidelined, as noted by Philanthropy Australia.
With the legislation yet to be introduced and passed through Parliament and updated guidelines to be published, further changes are expected.
ACNC updates its registration summaries library
The ACNC’s library of charity registration summaries has recently been updated, with new additions providing insights into how the ACNC makes registration decisions.
Drawing on the ATO's practice of publishing decisions on the private ruling database, each de-identified summary is based on a real charity registration application previously assessed by the ACNC and is designed to provide insight and transparency to the ACNC's decision-making process for charity registration applications.
Unlike the ATO, these summaries are drafted in general terms and do not contain legal analysis. The ACNC explains: "The summaries outline the ACNC's processes for assessing and deciding on applications for charity registration, including the questions we ask applicants, the information we seek from them and how we communicate with them throughout the process."
Recent examples of published summaries include:
- Incidental or ancillary purposes – this summary examines how the ACNC assesses whether an organisation's purposes are charitable or merely incidental to the main charitable purpose.
- Private benefit and restricted membership – this summary highlights the ACNC's approach to managing private benefits and conflicts of interest, particularly where an applicant proposes partnering with a business owned by a responsible person.
The ACNC stated that more summaries and other resources are expected to be published in the coming months.
View the ACNC’s registration decision summaries database.
Protection of the word ‘Anzac’
As many across New South Wales enjoy the announcement of a new public holiday for 2026, it is important to remember that restrictions apply over the use of the word ‘Anzac’ for official, commercial or naming purposes.
The Department of Veterans' Affairs (DVA) is responsible for the administration of the protections, including managing applications to use the word 'Anzac'.
The Protection of Word ‘Anzac’ Regulations 1921 (Cth) broadly provide that to use the word 'Anzac' (or any word resembling it) in an official or corporate manner, permission from the Minister is required. This includes use of the word in connection with any trade, business or profession, in connection with any entertainment or lottery, or as the name or part of the name of any institution (including charities) or private property. However, the restrictions generally do not apply in respect of use of the words 'Anzac Day' in connection with an event held on or around 25 April.
The purpose of these regulations is to protect the term’s meaning by honouring the enduring significance the original Anzacs hold in Australia’s heritage. Applications to use the word 'Anzac' on merchandise not intended to raise funds for an ex-service organisation or charity would generally be declined.
Applying for a permit is free and can be completed online. Applicants should allow up to four weeks for the process to be completed, particularly around peak times leading up to Anzac Day.
Access the DVA’s guidelines on use of the word ‘Anzac’.
AICD’s new Boards with Purpose podcast
The Australian Institute of Company Directors (AICD) has launched its new Boards with Purpose podcast, with monthly episodes creating meaningful connection within Australia’s diverse NFP sector.
The podcast series will feature leading NFP sector CEOs, founders, executives and non-executive directors in conversation with the AICD’s NFP Lead, Phil Butler. In each episode, guests share their purpose-driven insights and experiences to guide, inspire and inform those working within or alongside the NFP sector.
Boards with Purpose podcast is available to stream now on YouTube, Spotify and Apple.
Upcoming events and webinars
Charity Law Association of Australia and New Zealand (CLAANZ) 2026 Annual Conference and AGM
We’re excited to host the 2026 CLAANZ Annual Conference and AGM in July.
The 2026 conference will explore Towards Solutions: Pressing Issues in Charity Law and will be held over one and a half days, commencing after lunch on Thursday 23 July with a dinner following the AGM that evening, and continuing to Friday 24 July for a full day.
Our Charities and Social Sector team lead Darren Fittler will deliver a keynote covering a range of pressing issues in charity law.
Event details
Date: 23-24 July 2026
Location: Gilbert + Tobin, Level 35, Tower Two International Towers, 200 Barangaroo Ave, Sydney (also streamed online)
Registration: Register here.
Sessions include:
- charity mergers and restructures
- tax issues facing charities
- regulatory compliance from both the regulator and practitioner perspective
- how to respond to disasters and catastrophes
- traps to avoid in getting wiped off the register
- meaning and enforceability of gifts
- legal issues concerning charitable bequests
- use of AI by charities
Institute of Community Directors Australia ‘Not-for-profit Insurance Week’
Not-for-Profit Insurance Week features a series of practical webinars exploring key insurance and risk management issues for community organisations.
Across the week, participants will gain practical insights to help their not-for-profit better manage risk, secure appropriate coverage and ensure their policies and governance arrangements provide effective protection for the organisation and its people.
Event details
Date: 16–20 March 2026 (one session per day)
Location: Online (via Zoom)
Registration: Register here.
Sessions:
- Monday 16 March (1–2 pm AEST): Fundraising for NFPs: Prize Indemnity Insurance & How it can help raise funds for your organisation.
- Tuesday 17 March (1–2 pm AEST): Workplace risk: Not just for staff, but also volunteers.
- Wednesday 18 March (1–2 pm AEST): How to Protect Yourself from Cyber Crime.
- Thursday 19 March (1–2 pm AEST): Cover for Your Board & Why You Need It.
- Friday 20 March (1–2 pm AEST): Why You Should ‘Health Check’ Your Policy.
Cost: Free.
Format: online (via Zoom).