5 April 2004

Benefits to a NGO donor

Not only does a tax-exempt organisation benefit with regards to tax, but also a donor would receive numerous benefits from donating to such an organisation. There are thousand of NGOs in South Africa. Donations to a tax-exempt NGO would be more advantageous than to one that isn’t.

Benefits to the Donor or Testator Giving to a Tax-exempt PBO

Tax Type % Saved by Donor / Testator
Income Tax 30 to 40 % on a wider range of PBA’s
Donations Tax 20 % on the value of asset donated
Capital Gains Tax Upto 21 % on Donations & Bequests to PBO’S

In order to get these benefits, the PBO has to formally register with the South African Revenue Services (SARS), and its founding document (trust deed or constitution) has to comply with various conditions.

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