Taxes! It’s undeniably a grudge payment that every company and individual has to make. That’s why, if you work hard for your money, you’ll want to spend it on things you value, and on services that improve your life and the people you care about.
Donating to a charity of your choice has great benefits, both in terms of the reduction in your tax liability as well as the contribution made to society. But, if you aren’t intelligently donating your money, you could be paying a lot more in tax than you expect or need to.
Make a donation before the close of the tax year (28 February in South Africa) to ensure you receive the maximum tax benefit and deductions.
How to save tax money by making a donation
- Identify an approved PBO (Public Benefit Organisation) to receive your donation.
Only an approved PBO can supply you with a Section 18A tax receipt.
GROW Educare Centres is an approved BPO.
- Donate up to 10% of your taxable income for maximum tax benefit.
The amount deducted from your taxable income by SARS is limited to an amount of 10% of your taxable income.
For example, if you have a taxable income of R500 000 per year, donating R500 000 to a Public Benefit Organisation is not going to reduce your taxable income to R0.00. But rather, your tax deduction will be limited to 10% of your taxable income, being R50 000.
- Receive a Section 18A tax certificate from the organisation.
Make sure to submit your certificate with your annual tax return as proof of your donation.
Good to remember when making a donation
- The more you earn (and the higher your marginal rate of taxation), the more the donation will reduce your tax liability.
- For individuals, the amount deducted from your taxable income is limited to an amount of 10% of your taxable income
- GROW Educare Centres is an approved PBO (Public Benefit Organisation) and NPC (Non-profit company) that can supply companies and individuals with a Section 18A tax certificate.
- Company donations to GROW Educare Centres qualify as Social Enterprise Development (SED) or Enterprise Development (ED) points on your BBBEE scorecard. We can provide current, valid certificates.
- When You make a donation to GROW, simply email email@example.com with all your details to receive your Section 18A tax receipt
Three ways to donate to get tax relief:
- Donate online at GivenGain.
Simply click here and use your credit or debit card to make a donation online.
- Direct EFT or bank transfer to our bank account.
Email your proof of payment to firstname.lastname@example.org so that we can send you a section 18 A tax certificate. Bank details are below.
Bank account details:
Make an EFT payment into our bank account.
Account Name: Grow with Educare Centres
Bank: Investec Bank Limited
Branch: 100 Graystone drive
Branch Code: 580105
Type of Account: Current Account
Account Number: 10011899076
BIC / SWIFT CODE: IVESZAJJXXX
- Donate Bitcoin via Paxful.
Account transfer details below.
Step 1: Create a peer-to-peer bitcoin trading account here
Step 2: Deposit bitcoin to GROW Educare Centre’s Bitcoin deposit address from your digital wallet or bitcoin ATM. Bitcoin deposit address: 3CTiAWog8GEgQEXuN1h7DYXXQTcXD6R5Rj
Step 3. Email us your proof of payment to inform us of the donation
How is BEE connected with donations? Understanding NPOs, NPCs, PBOs, BEE, SED and Tax (in a nutshell).
While some companies and corporations may make a donation for tax reasons, many may be motivated to donate due to BEE requirements or social responsibility obligations.
The tax consequences and BEE benefit of the donation will depend on the type of entity to which the donation was made. Donating to a Non-Profit Company (NPC) or a Non-Profit Organisation (NPO) will NOT give you any tax benefits. It is only when a donation is made to an entity that is registered with SARS as a Public Benefit Organisation (PBO) that a donor will be entitled to claim the donation as a tax deduction.
Although donations to persons or entities that are registered as NPC’s or NPO’s may count for BEE or social corporate responsibility purposes, if these entities are not registered with SARS as a PBO the donor will not be entitled to claim tax deduction in relation to those donations.