Non-profit Organisations (NGOs), also known as public-benefit organisations(PBOs), play a major role in any society. The South African taxation system has undergone many changes that now regularise NPOs, like religious, educational, welfare, charitable and sports bodies and associations. The object […]
TAX Benefits for NGO’s
Your guide to exploiting tax benefits for organisations in the non-profit sector (NGO)
Create your founding document online
Your public benefit organisation is capable of saving a huge percentage of their tax by merely registering with the government as a PBO. One of the requirements is that you must have a compliant founding document. This can be in […]
Different forms an NGO may take
A South African based NGO can choose between three types of legal forms. A voluntary association A trust A section 21 company The choice of the appropriate legal entity will depend on the nature of the NGO. The requirements and […]
What Registering as an NGO involves
In order to register as a PBO, Firstly, the PBO’S founding document (Memorandum and Articles of Association ,Trust Deed or Constitution) has to conform to the requirements of Section 30(3)(b) of the Income Tax Act. Secondly, application must be made […]
Factors to consider before applying for donor deductability status
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? Can the NGO comply with the requirements of the Nonprofit Organisations Act? Is the organisation […]
Income Tax and NGOs
The general rule is that a public benefit organisation ( PBO ) would pay income tax on its net taxable income. That is, the income remaining after deducting expenditure incurred in running the PBO PBO THAT HAS NOT APPLIED FOR […]
Tax Benefit Reference Guide for NGOs
We have assembled a reference guide, that will take you explain to you in much more detail how to benefit from having PBO status as well as how to acquire that status. Some of the other topics in this reference […]
Activities that Qualify for Exemption
The Ninth Schedule of the Income Tax Act lists the various types of public benefit activities (PBA) that an NGO can undertake for it to qualify for tax exemption. These public benefit activities are categorised as: Welfare and Humanitarian; Health […]
Donations that Qualify as an Income Tax Deduction
When a Donor makes a donation to NGOs that undertake certain types of public benefit activities (PBA), the donor can claim as a tax deduction the greater of R1000 or 5% of the donor’s taxable income. Previously these deductions were […]
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 […]