What is a Section 18A and how can it benefit you?

What is a Section 18A and how can it benefit you? | CHOC South Africa

What is a Section 18A and how can it benefit you?

What is a Section 18A and how can it benefit you? | CHOC South Africa

Did you know that by making a donation to CHOC, you are not only helping us keep hope alive for children and teenagers living with cancer, but you are also able to benefit from your donation?

CHOC is registered as a Public Benefit Organisation and has been approved to issue Section 18A certificates in terms of Section 18A of the Income Tax (Act 58 of 1962).  This means that if you, as a taxpayer, or your company, make a bona fide donation in cash or in kind (material assets), this qualifies as a tax deductible expense.  However, the donation cannot exceed 10% of taxable income.

The South African Revenue Service (SARS) determines a bona fide donation to be   “a voluntary, gratuitous gift disposed of by the donor out of liberality or generosity, where the done is enriched and the donor impoverished. There may be no quid pro quo, no reciprocal obligations and no personal benefit for the donor. If the donee gives any consideration at all it is not a donation. The donor may not impose conditions which could enable him or any connected person in relation to himself to derive some direct or indirect benefit from the application of the donation?

This means that income received for the sale of merchandise, entry fee to participate in an event or campaign, the purchase of an auction item or the sponsorship of an event do not qualify for a Section 18A.  However, CHOC is able to send you a Social Economic Development letter to the value of the funds paid over to CHOC.

How do you get your Section 18A Certificate?

After making your cash donation, or if you have already made it, you can download our “Request for Section 18A” form here.  For cash donations made via EFT you just need to send through your completed form and proof of payment.  For GivenGain donations or those made on our secure giving platform on our website, you just need to tick the appropriate box on the request form.

With regards to in-kind donations, Section 18A certificates can be issued on receipt of an invoice.  If items are purchased from a supplier the receipt will be sufficient.  If items are donated from the company’s stock, then an invoice reflecting cost price will be required.  The certificate will be issued with the total amount less VAT.  These documents can be submitted with the “Request for Section 18A” listed above.

All queries regarding Section 18A Certificates, including requests, can be sent to [email protected].  Alternatively, you can contact your regional office directly.

Thank you for your support and for believing in CHOC and the work that we do. 

Find out More About Supporting CHOC

Contact us to find out more about getting involved with CHOC, or to request more information.

Donate to CHOC here: https://choc.org.za/donate-to-choc/

Visit our online shop: https://choc.org.za/choc-shop/

To find out more about how CHOC supports children and teens with cancer, and their families, visit https://choc.org.za/choc-programmes-we-offer/

To get involved with CHOC, visit https://choc.org.za/support-choc/