As a nonprofit in South Africa, you may be eligible for a number of tax benefits. However, these are not automatic processes and the laws governing them are very strict. variety of tax breaks & exemptions.
In this section, you will find advice that assist in unravelling the complexities of some of the tax laws. We also have experts weighing in on effective financial management and auditing procedures within your organisation
Free IT3(d) Submission with 10 Bucks Only!
Non-profit organisations (NPOs) that are Sec 18A approved public benefit organisations (PBOs) now face a new mandatory reporting requirement from the South African Revenue Service (SARS). PBOs must electronically submit IT3(d) certificates detailing all Section 18A tax-deductible donation receipt...
Umbrellas for the rainy days: Ten tips for building, managing and reporting non-profit reserves
Just like an umbrella shields you from unexpected rain, a well-planned reserve fund can protect your organisation from financial surprises. But like an umbrella, reserves can be fragile.
Here are 10 practical tips to help you build and manage strong financial reserves, helping your organisation ...
Essential SARS Resources for IT3(d) Compliance for PBOs
Essential SARS Resources for IT3(d) Compliance for PBOs
Understanding the IT3(d) submission process is important for Public Benefit Organisations (PBOs) to stay in line with SARS rules. SARS offers resources to help organisations get the information an...
Taking Steps to Support NPO Financial Literacy
There are more than 230 000 registered Non-Profit Organisations (NPO’s) in South Africa, and the numbers are growing rapidly. This is driven by several factors including a desire to provide social services to under-resourced communities, and also to drive social justice and hold the ...
The ABC’s of taxes in the non-profit sector
Navigating South African tax law for non-profit organisations (NPOs) can be quite confusing. This article provides a quick vocabulary to help you better understand the key terms and concepts related to NPO taxes, ensuring you can make sense of the benefits and requirements for your organization.
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How Turning Point Chartered Accountants can help NPOs with mandatory IT3(d) reporting
Non-profit organisations (NPOs) that are Sec 18A approved public benefit organisations (PBOs) now face a new mandatory reporting requirement from the South African Revenue Service (SARS). PBOs must electronically submit IT3(d) certificates detailing all Section 18A tax-deductible donation recei...
New SARS Rules on Section 18As for South African NPOs
New SARS Rules on Section 18As for South African NPOs
For South African NPOs, maintaining tax compliance is crucial not just for the organisation itself, but also for donors who claim tax deductions on their charitable contributions. The South African Revenue Se...
Fundraising reports made simple with ActiveDonor
Accurate and detailed fundraising reports are essential for maintaining transparency and accountability. They demonstrate to donors and stakeholders how their contributions are being used to further the organisation's mission. This transparency fosters trust an...
The crucial role of donations receipting in NPOs: Streamlining the process with ActiveDonor
Efficient receipting of donations is not just an administrative task; it is a crucial component of nonprofit operations that directly impacts donor trust, legal compliance, and overall credibility. With the help of donor management systems like ActiveDonor, this process ...
Embrace The New SARS Section 18A Regulations With ActiveDonor
In this article, we will explore the impact of these changes and how ActiveDonor, a powerful donor management tool, can assist nonprofits in navigating the complexities of Section 18A compliance.
The year 2023 has seen the South African Revenue Service (SARS) implement a set of changes in Sect...
Donor organisations and the 18(1)(b) rule
It is a fairly well-known rule that an organisation which has 18A status may only, in respect of funds for which 18A receipts have been issued, on-donate to another organisation which also has PBO and 18A status. However, there is a little more detail in this rule, and it is a very importan...
New from SARS: “third party returns” by 18a organisations
In the next step towards closing down 18A fraud, SARS has introduced a new tax filing requirement for organisations issuing 18A receipts (and for trusts which ‘vest’ an amount in a named beneficiary)- the filing of “third party returns”.
What is a “third party return”?
These are informati...
Do nonprofits have to FICA their customers?
Would non-profits that sell R100 000 or more of a product be considered ‘accountable institutions’ under FICA, and therefore be required to register and comply with FICA regulations? Nicole Copley explains.
Schedule 1 to the Financial Centre Intelligence Act (FICA) was amended by Gove...
Expanded requirements for 18A receipts: March 2023
If your organisation is a section 18A-approved organisation, know that the rules around issuing 18A tax receipts to donors have changed. Effective 1 March 2023, SARS has issued expanded requirements for 18A receipts and all receipts issued from this date onwards must comply with the updated rules...
Donor Management Systems: A Must-Have for South African Non-Profits
Non-profit organisations (NPOs) in South Africa face many unique challenges, from navigating complex laws and regulations to dealing with limited resources. However, one area where NPOs can make a significant impact is by effectively managing their donor relationships. This is where a donor manag...
How to evaluate your external auditor
For many non-profit organisations, the annual external audit is currently in progress or may be complete. Don’t forget to take a little time to assess the audit process, including your organisation’s contribution. This should lead to improvement in the quality, cost and efficiency of future audit...
All about audit certificates
What are they?
Audit certificates are a record produced each year and kept on file certifying/giving an opinion on the use of funds for which 18A receipts were issued. According to s18A(2B), a PBO which falls under section 18(2A), must obtain and retain an audit certificate. This...
Acting outside your objects - Tax and other consequences
Some people believe that trading is prohibited for PBOs, and others that all income of PBOs is tax exempt. Neither of these is true, and the answer lies somewhere between the two extremes: Under Section 10(1)(cN) of the Income Tax Act, all non-trading income and some types and parts of tradi...
Top 5 tax myths for non-profits
In our experience in working with non-profit organisations, we have encountered some common myths in relation to tax. Unfortunately, the impact of these myths can be devastating for these organisations, so here we try to debunk them.
Myth 1: “Non-profit entities are not taxpayers”
Every legal...
Top tips for preparing proposal budgets
Ensure that the full, realistic costs of the project are included in the budget, including the staff and support (overhead) costs
Projects are generally carried out within the context of an established organisation, with all its necessary infrastructure and systems. It is therefo...
Understanding Section 18A
Depending on their activities, public benefit organisations (“PBO’s”), as well as certain institutions and Government departments, can apply to SARS for approval in terms of Section 18A of the Income Tax Act. If this approval is granted, their donors can obtain a limited tax deduction (generally ...