Tax benefits to donors in terms of Section 18 A

Abraham Kriel Bambanani is a non-profit company and qualifies as a Public Benefit Organisation (PBO). This allows a tax benefit to Abraham Kriel Bambanani’s donors. Abraham Kriel Bambanani 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 Bambanani that qualifies on the provisions provided by the SARS guideline document that you can access here.
This can include:
• 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.
Documented proof of the value of the donated goods must be supplied in order for fair market value to be assigned and recognised.

The following items DO NOT qualify:

• Second hand goods do not usually qualify for a tax certificate.
• Gifts to staff and beneficiaries do not qualify as donations and a Section 18 A receipt will not be issued.
• Pro bono services do not qualify for Section 18A receipts.
• Where the donor company pays a supplier directly for a service of product on behalf of Abraham Kriel Bambanani, the transaction will not qualify for a Section 18A receipt.
• Payment for goods or events will in no way qualify for a Section 18A receipt. E.g. Buying an item at a charity auction.
• Sponsorships will not qualify for Section 18A receipts.

Note: Abraham Kriel Bambanani 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:

  • All donations must be formally recorded in the donations in kind system at Abraham Kriel Bambanani and therefore they must be recorded at the point of receipt, with full contact detail of the donor.
  • A valid postal address for the donor must be provided to appear on the tax certificate for it to be acceptable to SARS.

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