Entity Setup
Charity & Trusts Update: New Community Charity Trust Declarations and What They Mean for Entity Setup
Australia has added 34 entities to the officially declared **community charity trusts** list from 26 February 2026—this change affects how trusts structure themselves to be eligible for Deductible Gift Recipient (DGR) status.
By NomadicTax Research Team • 5-8 min read • April 1, 2026
## What’s Changed
On **26 February 2026**, the ATO enacted the *Taxation Administration (Community Charity Trusts and Corporations) Amendment (2026 Measures No. 1) Declaration 2026*, which **added 34 entities** to the register of *community charity trusts* under Division 426 of Schedule 1 to the Taxation Administration Act 1953. ([au.andersen.com](https://au.andersen.com/march-2026-monthly-tax-update/?utm_source=openai))
To qualify as a **community charity trust**, an entity must:
- Be registered with the Australian Charities and Not-for-profits Commission (ACNC) as a charity;
- Comply with the **Taxation Administration (Community Charity) Guidelines 2025**; and
- Be specifically named in a Ministerial declaration under Division 426. ([au.andersen.com](https://au.andersen.com/march-2026-monthly-tax-update/?utm_source=openai))
## Implications for Entity Setup & DGR Endorsement
- Only those trusts/corporations listed in the Ministerial *declaration* can apply to be endorsed as **Deductible Gift Recipients (DGRs)** under the community charity category. Being registered as a charity alone **is not sufficient**. ([au.andersen.com](https://au.andersen.com/march-2026-monthly-tax-update/?utm_source=openai))
- When setting up a new trust intended for philanthropic or public benefit use, seeking early inclusion in a declaration or ensuring eligibility under guidelines is essential.
## Steps for Trusts and Charities to Ensure Compliance
- First, **confirm ACNC registration** and ensure your operations align with charity obligations under ACNC rules.
- Review the **Community Charity Guidelines 2025** for activities, governance, and public benefit requirements. These guidelines detail eligible purposes, accountability standards, and reporting obligations. ([au.andersen.com](https://au.andersen.com/march-2026-monthly-tax-update/?utm_source=openai))
- If not already named, **monitor future declarations**—you may seek Ministerial declaration under Division 426 if eligible and required.
- Maintain records and documents required for DGR endorsement applications, including financial statements, proof of public benefit, and charitable purpose statements.
## Practical Example
Suppose “Hope Trust” has existed for years as an ACNC-registered charity delivering food relief and raising funds. Before 26 Feb 2026, it couldn’t claim DGR status under the new community charity category unless it was named in the declaration. Now, with inclusion, its donors can receive tax deductions for gifts made to Hope Trust, which may increase fundraising. But its capacity to obtain DGR depends on ensuring compliance with the Guidelines. If Hope Trust was excluded from the list, it cannot receive DGR under community charity rules.
## Strategic Considerations for Entity Setup
- If you plan to establish a charity or trust intended for philanthropic or community work, include **eligibility for community charity status** as part of the entity design (governance, purpose, ACNC registration, financial reporting).
- Think ahead: being named in declarations is periodic, and you may need to be proactive if your entity meets the criteria.
- For existing entities, check whether you are on the named list and make any operational tweaks needed to comply with 2025 guidelines—such as ensuring public benefit, meeting transparency requirements.
## Bottom Line
Community charity declaration changes are a **medium-to-high impact** issue for charities, trusts and donors wishing for DGR status. Being proactive with compliance and entity setup will allow access to tax-deductible donations and improved funding options.