Your section 18A certificates, post 1 March 2023, must reflect additional new information to successfully claim a tax deduction on your annual tax return for donations. 

If you get your 18A certificates from DoNation, then no need to read further -- we have you covered! If not, then read on.

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Previously the section 18A certificate had to reflect the following information:

• The PBOs (Public Benefit Organisation) name, reference number, address and contact details;
• Donation details (the date of receipt, the amount and nature of donation – if not made in cash);
• The name and address of the donor; and
• Confirmation that the donation will be used exclusively for the object of the PBO, namely to carry on its public benefit activities (PBAs).

Check that your Section 18A certificate now includes the following, additional information:

• Donor nature of person, (be it a natural person, company or trust, etc.)
• Donor identification type and country of issue (in case of a natural person)
• Identification or registration number of the donor
• Income tax reference number of the donor (if available)
• Contact number of the donor
• Email address of the donor
• A unique receipt number
• Trading name of the donor (if different from the registered name)

Additionally, as a donor, know that this requirement applies to all approved section 18A organisations, irrespective of their size or location. PBOs are to keep all the required information for a period of five years and SARS may request this information from PBOs at any time. If a PBO fails to comply with the new requirements, it may be liable to penalties. 

Here is an example of a certificate:

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Donors should contact the PBO they are donating to confirm that they are aware of the changes to section 18A certificates and that they are issuing receipts that comply with the new requirements. 

If your favourite BPO doesn’t know about DoNation’s widget that can automatically generate correctly detailed certificates, share this information link (https://www.thedonation.org.za/for-pbos-npos) with them or redirect them to info@thedonation.org.za. Better yet, drop us a note and tell us about your favourite organisation and we’ll approach them to help get them started with DoNation.