As the Union High School Development Trust meets the requirements to be registered as a Public Benefit Organisation in terms of section 30 of the Income Tax Act, it can issue a section 18A donation receipt to you. This will enable you to claim the donation as a deduction on your tax return. This also applies to any bequests to the Trust in your will.
What is a public benefit organisation (PBO)?
A PBO is an organisation that meets the requirements prescribed in section 30 of the Income Tax Act (the IT Act) and which may apply for approval to the Commissioner of the South African Revenue Service (the Commissioner), to enjoy the benefit of certain tax concessions.
What is a tax deductible receipt?
This is a specific receipt that is issued to a donor by an organisation that has been approved by the Commissioner under section 18A of the IT Act. A taxpayer making a bona fide donation in cash or of property made in kind is entitled to a deduction from his taxable income if the donation is supported by the necessary tax deductible receipt. You can also qualify for a deduction in your estate for amounts bequeathed in your will to the Trust.
May the donations received for which a tax deductible receipt has been issued be used for any purpose?
The donations received in cash or of property made in kind may only be used to carry on PBAs listed in Part II of the Ninth Schedule of the IT Act.
What activities qualify for section 18A approval?
PBAs approved by Minister of Finance for section 18A purposes are listed in Part II (of the Ninth Schedule to the IT Act). The PBAs are limited to certain categories, the following which fall within the Trust’s mandate: Education and Development