This month’s social sector spotlight offers a comprehensive overview of the latest developments shaping the not-for-profit and charity landscape.
In this edition, we shine a spotlight on deductible gift recipient (DGR) endorsement for animal welfare charities, in honour of World Animal Day on 4 October. Our article examines the eligibility criteria, registration process and tax concessions available to animal welfare organisations, offering practical guidance for those seeking DGR status.
We also present expert insights from Gilbert + Tobin’s Special Counsel, Elizabeth Lathlean, who shares her perspectives on mergers and restructures within the charity and not-for-profit space through her recent LegalWise Q&A. This is complemented by a range of sector updates, including new resources from the Australian Charities and Not-for-profits Commission (ACNC) and Australian Taxation Office (ATO) to assist charities and not-for-profits with record-keeping compliance, information on the introduction of a new DGR category and highlights from the ACNC’s Governing for Good Forum.
Research and resources
DGR Series – Animal Welfare Charities
World Animal Day is observed annually on 4 October to celebrate animal rights and welfare across the globe. Commencing almost 100 years ago, the importance of this day has continued to grow within the international community, with individuals and organisations encouraged to advocate for the improved treatment and welfare of animals. In recognition of the invaluable work that charities do to protect and care for animals, we explore the DGR endorsement category available to animal welfare charities. We discuss eligible activities for DGR endorsement, the process for registration, available tax concessions and the differentiation between the ACNC subtype of ‘preventing or relieving the suffering of animals’ to the DGR category.
Read our previous article ’Deductible Gift Recipient Series – Animal Welfare Charities’.
Not-for-profit mergers and legal considerations
On 17 September, Gilbert + Tobin Special Counsel Elizabeth Lathlean presented a seminar for the Legalwise Not-For-Profits and Charities: Compliance, Governance and Structural Reform in 2025. Elizabeth presented on mergers and restructures in the not-for-profit and charity sector, with the full program still available for registration as an on-demand option. If you missed it, her online Q&A covers how to spot legal and governance red flags in a merger, preserve charitable purpose, practical steps for not-for-profits, future‑proof structures to remain compliant and adaptable and emerging trends.
Read Elizabeth Lathlean’s Q&A.
ACNC resources for record-keeping
The ACNC has made record-keeping one of its 2025–2026 regulatory focus areas.
A survey of charities overdue in lodging their first Annual Information Statement found 49% failed to meet reporting deadlines due to inadequate record-keeping practices. The ACNC’s regulatory focus is intended to address and prevent such issues.
To assist with record-keeping, the ACNC has released a meeting minutes template designed to help organisations document who made decisions, when they were made and the reasons for those decisions.
Download the ACNC meeting minutes template.
ATO guidance on community charity corporations now released
Following the introduction of the Taxation Administration (Community Charity) Guidelines 2025 (Cth) earlier this year, the ATO has released updated guidance on the DGR category tailored specifically for community charities.
As specified by the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Act 2024 (Cth), community charities may exist in the form of a trust or corporation. To be eligible for DGR endorsement, the entity must be a registered charity with the ACNC and operate only for a specified mandatory purpose.
The specified mandatory purposes are:
Providing money, property or benefits to a DGR (other than a community charity) for any of the purposes for which the DGR may receive such gifts.
Engaging in the principal activity of a DGR (other than a specifically listed DGR or a community charity) or pursuing the principal purpose of such a DGR.
While all relevant details are not yet known, the ATO guidance outlines eligibility, governance expectations and the endorsement process.
ACNC Governing for Good forum recordings
Recordings from the ACNC’s 2025 Governing for Good Forum are now online. Held on 30 July 2025, the event brought together hundreds of participants from Australia and overseas, including advisers, academics, policymakers and representatives from charities of all sizes and types.
Across nine sessions, more than 20 speakers shared insights on governance challenges and opportunities for charities and not-for-profits.
Recordings of the sessions are available here.
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.