Charities are not automatically exempt from Income Tax.

From 1 July 2000 there is a new system of endorsement, which means charities must apply to the ATO for exemption.

Flinders University qualifies as a charity as a “non profit entity that operates for the public benefit to advance education”. It is entitled to endorsement as an ITEC on the grounds that it is a DGR and has a physical presence in Australia.

DGRs are entities to which donors can make tax-deductible gifts. From 1 July 2000, DGRs:

are listed by name in the income tax legislation, or
have received a notice from the ATO stating that they have been endorsed as DGRs.

Flinders University is not listed by name, but falls within a general category as a public university and has received notification of DGR status from the ATO.

The treatment of “gifts” by Flinders University is important in order to ensure that donors do indeed qualify for an income tax deduction and to satisfy the ATO that endorsement as a DGR and ITEC should be continued.