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