Skip to main content

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 Service (SARS) has recently introduced new regulations that require all Public Benefit Organisation (PBOs) approved under Section 18A to submit their issued tax certificates to SARS.

New SARS Rules on Section 18As

Effective from March 1, 2023, PBOs must collate all Section 18A tax certificates issued to donors throughout the financial year (March 2023 to February 2024) and submit this data to SARS using the prescribed IT3(d) form by May 31, 2024. Even if a PBO has not issued any Section 18A certificates during this period, they must still submit a nil declaration.

Failure to comply with this requirement could jeopardise the PBO's Section 18A approved status, which would prevent donors from claiming tax deductions on their donations going forward. This new regulation underscores the importance of meticulous record-keeping and a streamlined submission process for NPOs.

To assist PBOs in meeting these new requirements, SARS has provided three options for submitting the IT3(d) data:

  1.  eFiling: For PBOs that have issued 50 or fewer Section 18A certificates throughout the financial year, the details of each certificate can be submitted directly through the SARS eFiling platform.

  2. HTTPS Secure Gateway: If a PBO has issued more than 50 Section 18A certificates, they must first register as a third-party data provider with SARS. The PBO will then need to convert their Section 18A certificates into the prescribed IT3(d) format and upload this file via the SARS secure HTTPS gateway.

  3.  Connect:Direct: Similar to the HTTPS option, PBOs with more than 50 certificates must register as third-party data providers and convert their data to the IT3(d) format. However, instead of using the web-based upload, they can submit the file directly to SARS using the Connect:Direct software.

Navigating these submission options and ensuring accurate data conversion can be a daunting task for many PBOs, especially those with limited resources or technical expertise. This is where ActiveDonor, a cloud-based donor management and receipting platform designed specifically for South African nonprofits, can provide a valuable solution.

ActiveDonor: A Streamlined Solution

ActiveDonor, the leading cloud-based donor management and receipting platform for South African NPOs, has developed a new feature that will allow direct IT3(d) submissions to SARS from our platform.

With ActiveDonor's user-friendly interface and automated processes, NPOs can streamline their donor management, receipting, and Section 18A certificate issuance, all while ensuring compliance with SARS regulations. The upcoming IT3(d) submission feature will further enhance ActiveDonor's capabilities, providing a comprehensive and hassle-free solution for nonprofits to maintain their tax-compliant status and protect their donors' ability to claim tax deductions.

As the deadline for IT3(d) submissions approaches, nonprofits should explore their options and consider leveraging tools like ActiveDonor to streamline their processes, ensure compliance, and maintain the trust and support of their donors.
activedoner guy

Benefits of Using ActiveDonor

  • Streamlined Compliance: ActiveDonor simplifies the entire process by allowing you to generate professional Section 18A certificates, send them to donors, securely file them, and seamlessly submit the required IT3(d) data to SARS when needed.

  • Time-Saving Automation: Say goodbye to manual data entry and complicated file uploads. ActiveDonor's automated submissions save you valuable time and resources.

  • Increased Accuracy: Minimise the risk of human error with ActiveDonor's automated and secure submission processes, ensuring your data is accurate and compliant.

  • Cost-Effective Solution: Avoid the expense of outsourcing IT3(d) submissions by leveraging ActiveDonor's integrated platform designed specifically for South African NPOs.

  • Donor Trust and Transparency: Meet compliance deadlines with ease and maintain transparency with your donors, fostering trust and strengthening relationships.

  • Centralised Data Management: Keep all donor information, receipts, and Section 18A certificates securely stored in one centralized location within ActiveDonor's platform.

Implications for Donors and Tax Deductions

Compliance with section 18A guidelines is essential for maintaining strong relationships with your donors. By ensuring your donors receive their section 18A certificates promptly, you enable them to claim tax deductions and build trust with your organization.

As the deadline for IT3(d) submissions approaches, PBOs should explore their options and consider leveraging tools like ActiveDonor to streamline their processes, ensure compliance, and maintain the trust and support of their donors.

Ready to simplify your SARS compliance?

Sign up for ActiveDonor's IT3(d) submission waitlist to be notified when this new feature launches.

Book A Personalised Free Web Demo

Schedule a free one-on-one personal call and see how ActiveDonor can help your organisation. In only 30 minutes, you will be guided through ActiveDonor as a solution and have your questions answered. 

Your introductory consultation call includes:

  • Your current NPO workflow
  • A discussion to collect your key NPOs requirements
  • ActiveDonor use cases for your organisation
  • Our Streamlined Receipting & Section 18A Workflow
  • How ActiveDonor can help you work smarter & grow your NPO

Advertorial by Zahir Mirza | Active Donor

ActiveDonor is a simple way to manage donors, receipts, and Section 18A for NPOs. The software helps you easily keep track of your donors, issue donation receipts and Section 18A Certificates. whether you’re a small non-profit or a large one, ActiveDonor makes it easy to stay organised and efficient.

Related articles


New SARS Rules on Section 18As for South African NPOs
Zahir Mirza | Advertorial
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...
Fundraising reports made simple with ActiveDonor
Advertorial by Zahir Mirza | Active Donor
Accurate and detailed fundraising reports are essential for maintaining transparency and accountability. They demonstrate to donors and stakeholders how their co...
The crucial role of donations receipting in NPOs: Streamlining the process with ActiveDonor
Advertorial by Zahir Mirza | Active Donor
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...
Embrace The New SARS Section 18A Regulations With ActiveDonor
Advertorial by Zahir Mirza | Active Donor
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. ...
Donor Management Systems: A Must-Have for South African Non-Profits
Advertorial by Zahir Mirza | Active Donor
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 ...