It is almost financial year-end and tax season; which is also when local charities get the most benefit out of donations made.
South Africa (20 February 2024) – Financial year end and tax season are almost upon us and that means lots of processing paperwork and crossing fingers for much-needed positive returns. But it is also when charities get a little extra financial boost as they are able to issue Section 18A tax certificates.
Only charities that are registered for the certificates, can issue them to donors. Many charities are taking to social media to encourage financial year-end donations. They then issue the certificates for donations made, and this is then used during tax season.
Organisations that are registered to issue certificates for donations received, need to know who the donations are coming from. So, if you make a donation, email proof of payment to your selected charity, and that will begin the process of completing a Section 18A tax certificate.
Things to note: there is a 10% limit on taxable income, but one cool thing we learned this week is that your donations can be added to your payslip each month – making the whole record-keeping process even easier! This is perfect is you donate to the same charities each month.
“A payroll-giving programme operated by an employer enables employees to donate from their salaries on a monthly basis to a section 18A-approved organisation.”
Donations to charity can be done in terms of cash/eft or donations in kind. Physical donations are more technical as there are formulas applied to deem value and the donations need to be deemed as assets (like a car, building, shares and so on). So be sure to call the charity to discuss donations like this beforehand.
Charities need support from the business world and the public in order to remain operational. They are the reason so many people are able to flourish through hard times. If we do not support charities, society struggles even more! So why not help in a way that is mutually beneficial to all?
Looking for a charity to support? We have several charity lists which you can browse here. You will find everything from child welfare and animal organisations, to charities fighting gender-based violence and supporting education.
Thousands of charities need our support and now is the perfect time to give it.
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