Organizations that are endorsed as deductible gift recipient (DGRs) are entitled to receive donations that are deductible from the donor’s income tax. This implies that when a donor makes a gift or contribution to a DGR endorsed charity, they may be able to claim a tax deduction. The amount of the claim will depend on the type of gift or contribution they make.Â
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To obtain endorsement as a deductible gift recipient (DGR), certain requirements must be met.Â
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DGR Endorsement Categories
Determine your eligibility for endorsement as a deductible gift recipient (DGR), which comes in two categories:Â
1. Organizational DGR Endorsement: Applies when an entire organization falls within a DGR category. Donors can claim income tax deductions for gifts and contributions made to the organization.Â
2. Fund, Authority, or Institution DGR Endorsement: Pertains to a fund, authority, or institution operated by an organization, which falls within a DGR category. The organization is endorsed specifically for the particular fund, authority, or institution, and only gift and contributions to that entity are deductible.Â
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If an organization operates multiple funds, authorities, or institutions, separate endorsements are required for each.Â
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Deductible contributions and gifts are only applicable to the fund, authority, or institution.Â
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In the event that an organization oversees multiple funds, authorities, or institutions, a distinct endorsement is required for each entity.Â
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Each DGR category has its own set of additional eligibility requirements, outlined in the DGR table.Â
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Effective December 14, 2021, non-government DGRs must be registered charities, except for ancillary funds or those specifically listed in tax law. A transitional period is applicable for eligible not-for-profits. For more details, refer to the information on DGRs required to be a registered charity.Â