Last week a meeting at Warwick Farm between foundations, grassroots charities and Hon Dr Andrew Leigh MP has marked a major milestone for the charitable sector, with the introduction of long-awaited Deductible Gift Recipient (DGR1) reforms set to unlock a new era of giving in Australia.
Held at Liverpool Neighbourhood Connections, the discussion brought together key voices in community philanthropy, including our Sydney Community Foundation Chair Sophie McCarthy and CEO Loredana Fyffe, to reflect on the significance of these transformative changes.
The reforms, which allow private ancillary funds (PAFs) to now donate to community foundations with DGR1 status, remove a long-standing barrier that has prevented millions in philanthropic funding from reaching local charities on the frontlines of social need.
For years, generous individuals and families establishing private foundations have been restricted from supporting public foundations like Sydney Community Foundation, limiting the flow of funds to where they are most needed.
As a Community Foundation, we work with hundreds of grassroots charities across Greater Sydney and see firsthand the essential, life-saving work these organisations do in their communities.
The new legislation will make it easier for public foundations to connect donors to causes they care about, and channel vital resources to small, often underfunded local organisations tackling complex social challenges such as homelessness, domestic violence, and youth disengagement.
The reforms promise to increase generosity, build stronger partnerships, and amplify the impact of philanthropy at the local level. They also bring greater clarity to a previously confusing regulatory space, which in turn will encourage more people to give and get involved.
This is a significant milestone that will open up transformative new possibilities for grassroots philanthropy across Australia, helping us to grow civic participation, encourage volunteerism, and foster a kinder, stronger Sydney – and nation.
We are grateful to Hon Dr Andrew Leigh MP for his leadership in helping to deliver this important reform and also extend our thanks to Liverpool Neighbourhood Connections for hosting this important conversation and for their ongoing work in supporting local communities.
To make a donation to Sydney Community Foundation, click here.
