Community sheds (men’s sheds and women’s sheds) may be eligible for deductible gift recipient (DGR) status under a specific category established in 2020.
This means donations of $2 or more to a community shed endorsed as a DGR are generally tax deductible.
A community shed must be registered as a charity with the ACNC to apply for DGR endorsement. This page explains the important considerations for a community shed in applying for both charity registration and DGR endorsement.
To find out more about the Australian Taxation Office's (ATO) requirements for DGR endorsement, visit the ATO's community sheds webpage.
Community sheds that are already registered as a charity with the ACNC, but are not registered as a Public Benevolent Institution or Health Promotion Charity, can apply directly to the ATO for endorsement under the community sheds DGR category.
To apply, download and complete the application for endorsement as a deductible gift recipient, then send the completed form to the ATO.
As part of the ACNC's review of DGR-endorsed charities, we encourage you to review your community shed's registration as a Public Benevolent Institution or Health Promotion Charity to ensure your charity remains entitled to the subtype and corresponding DGR endorsement.
You can use our self-assessment tool to help review your community shed’s registration.
Based on your answers to the self-assessment, you can decide if your community shed:
- is still entitled to be registered as a Public Benevolent Institution or Health Promotion Charity, and can retain the corresponding DGR endorsement it holds, or
- should update its registration and apply to the ATO for endorsement under the DGR category for community sheds.
Updating your community shed's charity registration and applying for DGR endorsement
If your community shed is no longer eligible for registration as a Public Benevolent Institution or Health Promotion Charity, you can update its charity registration by completing the ‘Change your charity's subtype’ form available in the Charity Portal. Doing this will also change the tax concessions your community shed is eligible for.
To check if your community shed is eligible for DGR endorsement under the community shed DGR category, visit the ATO’s community sheds webpage.
If you think your community shed is eligible, you can apply directly to the ATO via its application for endorsement as a community shed deductible gift recipient form.
Administrative penalties may apply for failing to notify the ACNC of a change in your community shed’s circumstances.
A community shed must be registered as a charity with the ACNC to be eligible for DGR endorsement.
Before applying for charity registration, it is important to understand the eligibility requirements for registration, as well as the ongoing obligations charities have to the ACNC.
Take the time to review your community shed’s governing document and activities to ensure it is eligible for charity registration and the community shed DGR category.
A charity’s governing document must set out its nature as a not-for-profit and contain charitable objects. If your community shed does not have charitable objects, you may consider adapting the following sample objects.
Sample objects:
The [organisation] is established to be a charity whose purpose is to advance [health/social or public welfare] by operating a [men’s/women’s/community] shed to:
- improve the health of [men/women] who are at risk of health issues arising from loneliness and isolation
- facilitate programs that address mental, physical and emotional health issues in [men/women]
- provide meaningful activities where [men/women] can participate in the company of others to relieve isolation and loneliness
- undertake charitable activities for the benefit of the broader community.
If you decide to apply to register your community shed as a charity, you can use our registration checklist to help you prepare the information you will need for the application.
To apply to register your community shed, you need to complete and submit an online application in the Charity Portal.
As part of your application for charity registration, you can also apply for DGR endorsement under the community shed category. Once your community shed is registered as a charity, the ACNC will pass your DGR application onto the ATO for processing.
Other points to note about charity registration and endorsement under the community sheds DGR category
- The community shed DGR category came into effect on 1 October 2020. Endorsements under this DGR category will not be applied prior to 1 October 2020.
- Applications for charity registration made after 1 October 2020 can be backdated to the date from which the community shed meets all the requirements for registration.