From 1 March 2024, Public Benefit Organisations will be required to report to SARS on any amount donated to the PBO in respect of which it issued a section 18A receipt, as well as all information required to appear on the section 18A certificate (the requirements of which were updated – see Section 18A tax
Liesl Williams
NPOs engaged in cross-border activities must register with Department of Social Development
By Liesl Williams on
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…
Section 18A tax certificates must disclose more information
By Liesl Williams on
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…
Doing good doesn’t always entitle an NPO to tax benefits
By Liesl Williams & Dale Cridlan on
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…
You may not claim both a section 18A certificate and BEE points for donations to a non-profit entity
By Liesl Williams & Amber Kardamilakis on
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…
Am I an NGO or an NPO? Unpacking the alphabet soup
By Liesl Williams on
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…