Foundation for Rural & Regional Renewal

FRRR has today welcomed the extension of DGR-1 status for the country’s Community Foundations, in particular those in regional areas, which was confirmed in Tuesday night’s Budget announcements. This special status means that from 1 July, they can directly receive tax deductible donations from a broader range of donors to support more place-based philanthropy, which FRRR has long-championed.

HEADING: FRRR welcomes extension of DGR1 to Rural Community Foundations
IMAGE: Group shot of community group members with their hands in the air

Place-based approaches are critical, especially given the compounding impacts of back to back disasters and the challenges and opportunities in each community. They allow local people to prioritise resources to deliver outcomes that they know will make the most impact, taking account of the unique circumstances of every place.

For the rural and regional communities that have a local Community Foundation that is a member of Community Foundations Australia, this legislative change will mean that they will soon be able to directly accept tax deductible donations to channel toward their local community needs, as well as give to local community organisations that do not have DGR-1 status.

FRRR CEO, Natalie Egleton, says that this reform paves the way for much-needed additional local giving, and that FRRR will continue to support rural communities across Australia to address local and regional issues.

“FRRR was established in 2000 through a partnership between the Australian Government and philanthropy to facilitate long-term and flexible funding to reach and stay in remote, rural and regional communities. In fact, we were set up to address many of the issues raised in the Pride of Place Inquiry, which recommended this DGR extension. We have long championed the important role of place-based philanthropy and indeed, have channelled more than $135 million to in excess of 12,000 projects to support local projects in remote, rural and regional Australia.

“Of this, more than $22 million has gone to support Community Foundations, with some $6 million via the 22 Community Foundations that we have partnered with through a Community Foundation Account. We are proud to have been able to help these Foundations raise and distribute those funds, and to have played a key role in the establishment, development, and promotion of the sector as a whole. We welcome this legislative reform, which will enable even more funding to be channelled locally,” Ms Egleton said.

Over the coming months, FRRR will work closely with the 19 Community Foundations that currently hold Community Foundation Fundraising Accounts and are in a position to take advantage of this legislative reform.

“FRRR will continue to back regional Community Foundations and to facilitate funding and collaborations for other remote, rural, and regional not-for-profits and community groups to advance resilient, vibrant, sustainable regional communities. Our role in connecting resources and supporting the capacity of local leaders and not-for-profit organisations, and having a long-term focus in our work, will remain a key pillar of FRRR’s work.”

Community Foundations Australia commented that “FRRR has been the engine room for the development of Community Foundations in regional Australia, where four out of five of these Foundations operate. This reform may change how we work with each other, but it does not change our shared ambition of working together to support regional community development. Our sector as a whole very much looks forward to building on our well established relationship with FRRR for mutual benefit.”

For more information on the services that FRRR offers, visit www.frrr.org.au.