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
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...
Beating the NPO starvation cycle!
Financing a non-profit organisation has always been one of the most significant challenges faced by such ventures. However, leveraging technology to secure recurring donations and automate tedious administration, means that in this day and age, sustainable funding is no secret.
“Non-prof...
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...
Advance Notice - Changes coming to 18A Receipts
The current provisions of section 18A of the Income Tax Act requires that 18A receipts which are issued to donors include the following details:
18A RECEIPT:
Your organisation’s name, address and PBO number;
The donor’s name and address;
The date the donation was receiv...
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...
Taking a fresh look at NPO finance
Inyathelo, The South African Institute for Advancement, is dedicated to helping build a strong, stable civil society and democracy in South Africa by contributing to the development of sustainable organisations and institutions.
In advisory sessions over the years, many non-profit organisations ...
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 ...
