Liesl Williams

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NPOs engaged in cross-border activities must register with Department of Social Development

The General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act, 2022 effected changes to the Non-profit Organisations Act. Previously, registration by a non-profit with the NPO Directorate within the Department of Social Development was voluntary. With effect from 1 April 2023, non-profit organisations that make donations to individuals or organisations outside South Africa or … Continue reading

Section 18A tax certificates must disclose more information

As from 1 March 2023 a section 18A certificate issued to a charitable donor will have to display additional information. In terms of a Government Gazette notice published on 24 February 2023, the SARS Commissioner has exercised the right under section 18A(2)(a)(vii) of the Income Tax Act to prescribe further requirements for these certificates. The … Continue reading

Doing good doesn’t always entitle an NPO to tax benefits

Tax exempt status may be awarded to a non-profit organisation (NPO) that solely or primarily undertakes public benefit activities with a philanthropic or altruistic intent. An NPO that has been granted tax exempt status (commonly referred to as a public benefit organisation or PBO) is generally exempt from income tax. Certain approved PBOs may also … Continue reading

You may not claim both a section 18A certificate and BEE points for donations to a non-profit entity

Donations to non-profit entities may carry a tax benefit for the donor – the hallowed section 18A certificate. This allows the donor to claim a tax refund and encourages donations. Non-profit entities that are Public Benefit Organisations (PBO) can issue these certificates. PBO status is granted by the South African Revenue Service (SARS) under the … Continue reading

Am I an NGO or an NPO? Unpacking the alphabet soup

You are both. And neither. The charitable sector is peppered with acronyms whose correct usage is not always fully appreciated. This naturally leads to confusion. The common acronyms are: NPO: non-profit organisation/not-for-profit organisation NGO: non-governmental organisation PBO: public benefit organisation NPC: non-profit company When a not-for-profit entity asks ‘What am I?’ the answer can only … Continue reading