Tax benefits to donors in terms of Section 18 A

Abraham Kriel Childcare is a non-profit company and qualifies as a Public Benefit Organisation (PBO). This allows a tax benefit to Abraham Kriel Childcare’s donors. AKC 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.

See our Tax Exemption letter from SARS here.

Donations that qualify for tax certificates are:

Financial contributions:

  • In cash or
  • By cheque or
  • By postal order or
  • By direct deposit or
  • By EFT or
  • By donating via the donate button on the AKC website or
  • By a debit order or a credit card deduction

Donations in Kind:

Any gift of goods to Abraham Kriel Childcare 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: Abraham Kriel Childcare does not assign a value to donations in kind. The onus is on the donor to keep a record of cost to submit to SARS.

Some preconditions:

  • A donation must leave an audit trail and therefore must reflect as income on the books of Abraham Kriel Childcare 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.

Click here for more information about tax exemption. Alternatively go to www.sars.gov.za

Please inquire at marketing about preconditions prior to making your donation as CONDITIONS do apply.

B-BBEE Benefits to Donors