In a country with real need, even a simple act of generosity can matter.
Supporting education, food relief, healthcare, or community work may not solve every challenge, but it can make a real difference in the right hands. That is reason enough to give.
In some cases, a donation to the right organisation may also qualify for a tax deduction. That is where section 18A comes in.
The important part
Not every donation qualifies.
To claim a deduction, the donation must generally be made to an approved public benefit organisation that is authorised to issue a valid section 18A certificate.
This is where many people get caught out. Not every non-profit organisation qualifies. Only approved public benefit organisations with section 18A approval can issue certificates for deductible donations.
So even if you gave to a good cause, the donation is not automatically deductible.
What should you check?
- the organisation is an approved public benefit organisation
- you have a valid section 18A certificate
- you have proof of payment from an account in your name
Is there a limit to the deduction?
Yes.
SARS states that the section 18A deduction is limited to 10% of the taxpayer’s taxable income.
The real takeaway
If you want to support meaningful work in South Africa, that is worth doing in its own right.
If that support also qualifies for a section 18A deduction, even better.
Disclaimer: This article is for general information only and does not constitute tax, legal, or financial advice. Whether a donation qualifies for a section 18A deduction depends on the specific facts, the status of the organisation, and the donor’s overall circumstances.
