Do you donate money?

If I'm not mistaken, donations to charities aren't 100% deductible from your tax. So if you donate say R10k, it doesn't mean you pay R10k less tax. It means your income is reduced by R10k before your tax is calculated.

So if you are in a 40% tax bracket, the R10k reduction effectively means you pay R4k less tax at year end? I'm not sure about this?

Could it also mean that a donation could effectively bump your down to a lower tax bracket?
 
Not all Public Benefit Organisations qualify for section 18A status.

A Non Profit Company/Trust/Association applies with the Department of Social Development for Public Benefit Organisation(PBO) status. They will then apply to SARS for Income Tax registration and can apply for Exemption from Income Tax through the Tax Exemption Unit. This will then qualify them to not pay income tax on certain income received. They can then also apply for Section 18A status. Only certain PBOs that perform certain Public Benefit Activities(PBA) can qualify for S18A status. This will allow them to issue a Section 18A tax certificate to donors who can then claim a tax deduction for donations made.

Only PBAs listed in Part II in the Ninth Schedule in the Income Tax Act qualify for S18A status.

http://www.acts.co.za/income-tax-act-1962/ninth_schedule_section_30_public_benefit_activities

I'm in the NGO/NPO sector.
 
signates said:
Not all Public Benefit Organisations qualify for section 18A status.

A Non Profit Company/Trust/Association applies with the Department of Social Development for Public Benefit Organisation(PBO) status. They will then apply to SARS for Income Tax registration and can apply for Exemption from Income Tax through the Tax Exemption Unit. This will then qualify them to not pay income tax on certain income received. They can then also apply for Section 18A status. Only certain PBOs that perform certain Public Benefit Activities(PBA) can qualify for S18A status. This will allow them to issue a Section 18A tax certificate to donors who can then claim a tax deduction for donations made.

Only PBAs listed in Part II in the Ninth Schedule in the Income Tax Act qualify for S18A status.

http://www.acts.co.za/income-tax-act-1962/ninth_schedule_section_30_public_benefit_activities

I'm in the NGO/NPO sector.
Click to expand...
^ listen to the expert rather than me

I'm just happy that the only significant financial donations I make are going to a section 18A PBO so I can put that on my tax return.
 
signates said:
Not all Public Benefit Organisations qualify for section 18A status.

A Non Profit Company/Trust/Association applies with the Department of Social Development for Public Benefit Organisation(PBO) status. They will then apply to SARS for Income Tax registration and can apply for Exemption from Income Tax through the Tax Exemption Unit. This will then qualify them to not pay income tax on certain income received. They can then also apply for Section 18A status. Only certain PBOs that perform certain Public Benefit Activities(PBA) can qualify for S18A status. This will allow them to issue a Section 18A tax certificate to donors who can then claim a tax deduction for donations made.

Only PBAs listed in Part II in the Ninth Schedule in the Income Tax Act qualify for S18A status.

http://www.acts.co.za/income-tax-act-1962/ninth_schedule_section_30_public_benefit_activities

I'm in the NGO/NPO sector.
Click to expand...

Cool, so it's a definite no for OUTA
 
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