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Tax Benefits

Tax Benefits For Donations

in terms of Section 18 A

Tax benefits to donors in terms of Section 18 A

Jakaranda Kinderhuis is a non-profit company and qualifies as a Public Benefit Organisation (PBO). This allows a tax benefit to the Children’s Home’s donors. Jakaranda Kinderhuis may issue Section 18A receipts for bona fide donations, which allows for donations of up to 10% of taxable income to be deducted from such income, as stated in the Act.

Donations that qualify for tax certificates are:

Financial contributions:

Cash Donation
Cheque Donation
Postal Order Donation
Direct Deposit
EFT Donation
Donating via the DONATE button on this website
Debit order or a credit card deduction
Donations in Kind:

Any gift of goods to Jakaranda Kinderhuis that causes a saving on the budget and can be taken into the books as income eg:

Non-perishable foods
Consumable Goods
New clothes
New capital items such as TV’s, stoves, fridges etc.
Donations of necessary materials for maintenance work such as paint, glass, light fittings, geysers etc.

Second-Hand Gifts:

Second-hand goods do not usually qualify for a tax certificate. (There are exceptions to this rule e.g. the donation of a vehicle, where a market value can be determined.) Note: Jakaranda Kinderhuis does not assign a value to donations in kind. The onus is on the donor to keep a record of cost and send us proof of payments to submit to SARS.

Some preconditions:

A donation must leave an audit trail and therefore must reflect as income on the books of Jakaranda Kinderhuis before a tax certificate can be issued.

A valid postal address for the donor must appear on the tax certificate for it to be acceptable to SARS.

Art. 18A receipts will not be issued where the transaction involved a trade of any kind. Eg. Buying an item at a charity auction or buying a ticket to a concert or gala dinner.

Please inquire at our Marketing or Financial Department about preconditions prior to making your tax-deductible donation.