They say we make a living by what we get but we make a life by what we give. Helping those less fortunate and those in need is indeed a noble act of kindness. The advantage of donating to a registered organisation however is that they generally have good standing as their activities are audited and transparency and accountability is compulsory.
Another advantage is when one makes donations to these charitable organisations is it possible to claim cash back from the South African Revenues Services provided certain conditions are met. Firstly you need to prove that a donation was made indeed and secondly it was to an approved organisation. Always maintain receipts so you may load it as a supporting document with your tax returns.
For a claim to be valid, donations must be made to a permitted Public Benefit Organisation (PBO) or Non-Profit Organisation/Company (NPO/C). Always ensure you have a section 18A certificate from the organisation in question.
Any donations in excess of 10 percent of your taxable earnings won’t be deductible.
If we don’t follow the rules not only would we not be able to claim cash back but could be liable for donation tax. So be benevolent whenever possible but if there is an opportunity to make a tax claim, enjoy the benefits by sticking to all SARS requirements. We can’t help everyone, but we can help someone so let’s hope these tax claims encourages us to be charitable to those less fortunate.
