Delivery of historic reforms will boost community giving in Australia

Community Foundations Australia and Philanthropy Australia have welcomed the delivery of tangible reforms that will boost social capital and grassroots giving through Australian community foundations.

The Taxation Administration (Community Charity) Guidelines 2025, which took effect over the weekend, are the final component of a major reform that recognises the importance of community governance in affecting long-term social change.

Community Foundations Australia Chair, Ben Rodgers, commended the Australian Government for the practical action it has taken to support community philanthropy in Australia.

‘The implementation of this reform brings more than 20 years of sector-wide advocacy to a successful close, creating a new and better tax and regulatory framework for community foundations, in recognition of the vital role they play building thriving communities across Australia.’

‘It’s been great to work with the Assistant Minister for Charities, the Hon Andrew Leigh MP, to secure this outcome, and we applaud his personal commitment to the importance of community foundations and their role as social capital enablers,’ said Ben Rodgers.

The reform ushers in a new era for Australian communities and their foundations, which will now benefit from a more flexible and effective vehicle to help them achieve their objectives.

Until now, community foundations have faced major barriers attracting donations from ‘private ancillary funds’ used by individuals and families for private giving. They have been constrained from directly supporting community groups which lack DGR status.

The reforms will directly address these issues, by introducing a new ‘deductible gift recipient’ (DGR) category for community foundations in Australia and supporting guidelines, creating a more fit for purpose environment for community philanthropy in Australia.

‘This would not have been possible without the tireless effort and advocacy from so many across the community foundation movement and broader philanthropic sector, both in recent years and across the last two decades. We are very grateful to everyone who contributed,’

‘Australian communities benefit greatly from governments that understand the value of community leadership and local decision-making when it comes to addressing complex challenges,’ said Ben Rodgers.

Philanthropy Australia CEO, Maree Sidey, said that the outcome is a powerful example of what is possible when the philanthropic sector, our partners and the Australian Government work together to achieve a common goal.

‘It’s vital that our policy and regulatory environment empowers people to give, so we’re really pleased that these reforms remove big roadblocks, helping unlock the flow of more resources to important community initiatives,’

‘These are the types of changes that will help achieve the Australian Government’s goal to double giving by 2030, and with the Federal Election not far away, there’s an opportunity for both the Government and Opposition to build on this with further practical reform commitments aimed at growing giving for the benefit of the community,’ said Maree Sidey.

Community Foundations Australia and Philanthropy Australia recognise the bipartisan support for this reform, which had its origins in a commitment made by the previous Australian Government in the 2022 Budget.

‘It’s an exciting time for community philanthropy in Australia, and we appreciate the support of our elected representatives and leaders for the work of community foundations,’ said Community Foundations Australia Chair, Ben Rodgers.

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About Community Foundations

Community foundations are community-owned and -managed platforms, which use a philanthropic fund structure to invite civic participation and build collective agency.

The community foundation model provides a durable and structured way for a community to unlock its many financial and social resources, to build collective capacity, and affect lasting social change. You can learn more here.

About Community Foundations Australia

Community Foundations Australia connects and supports community-led philanthropic organisations across Australia, empowering the field to operate more effectively and efficiently, and create lasting social change in communities.

Our mission is to catalyse collaboration, participation and innovation within the community philanthropy movement to create a fairer, more sustainable Australia.

We work with the whole field – community groups, community foundations and other forms of community-led philanthropy, partners and government – to advocate for community governance models, and to empower local communities to determine their own futures.

About Philanthropy Australia

Philanthropy Australia, the national peak body for philanthropic giving, aims to achieve a generous and inclusive Australia through more and better philanthropy. Our members include trusts, foundations, families, individual donors, companies, professional advisers, intermediaries and not-for-profit organisations.