5 April 2004

Factors to consider before applying for donor deductability status

  1. The Founding Document has to comply with the requirements as set out in section 30(3)(b) of the Income Tax Act and the Nonprofit Organisations Act?
  2. Can the NGO comply with the requirements of the Nonprofit Organisations Act?
  3. Is the organisation actively involved in one or more of section 18A qualifying PBAs that are eligible for donor deductibility?
  4. If the organisation provides funds to other NGOs that actively undertake section 18A qualifying PBAs that are eligible for donor deductibility, does the organisation have the infrastructure to ensure that the NGO receiving the funds is using the funds as intended?
  5. Does the organisation have the administrative infrastructure to issue the tax receipt and tax certificate as required?
  6. Do Donors to the organisation require the tax deduction?
  7. Would a tax deductible status enhance the NGO’s funding?

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