What is section 18A approval, and when may an organisation issue a donation receipt? #
Section 18A approval is a separate approval from the South African Revenue Service (SARS). It allows an approved organisation to issue the prescribed receipt for a qualifying donation used for qualifying public benefit activities.
The receipt may allow the donor to claim the permitted deduction from taxable income, subject to the Income Tax Act and the donor’s circumstances.
Is every PBO allowed to issue these receipts? #
No. Public Benefit Organisation (PBO) approval and section 18A approval are not the same thing.
An organisation may be an approved PBO but not be approved under section 18A. Section 18A is restricted to qualifying organisations and qualifying activities, generally those listed in Part II of the Ninth Schedule.
What counts as a donation? #
A bona fide donation is a genuine gift made without an equivalent benefit being supplied in return. Payment for goods, services, tickets or another benefit is not automatically a donation merely because it supports a non-profit organisation.
The receipt must contain the current prescribed information. Section 18A-approved organisations also have reporting and record duties.
What must the NPC do? #
Do not issue a tax-deductible receipt unless the organisation has received written SARS approval that covers the relevant activity and donation.
An ordinary acknowledgement or thank-you receipt may confirm that money was received, but it must not falsely state that the donor can claim a section 18A deduction.
Use a registered South African tax practitioner for the organisation’s application, receipt format and donor-reporting obligations.
Related articles #
Last checked against SARS: 31 August 2026
Leave a Reply