B-BBEE benefits to donors
Donations to Youth for Christ/KZN can earn your company points on the Socio-Economic Development element of B-BBEE, as our beneficiaries are more than 75% black. Our focus is on reaching the most vulnerable children and youth and orphans due to HIV/AIDS. In KwaZulu Natal this group of people are predominately black, hence our racial profile of beneficiaries. Through the projects at YFC/KZN, all expenditure has the ultimate aim of giving hope, empowering and developing children, youth and their families.
Beneficiary Recognition Certificate
When making a donation to YFC/KZN we will supply you with the following:
- A letter of acknowledgement and appreciation for your B-BBEE and tax purposes
- A 18A tax receipt for your donation
- Your logo will be uploaded on website (please send us your logo for upload)
Tax benefits to donors
Tax benefits to donors in terms of Section 18 A
Youth for Christ is a non-profit organisation and qualifies as a Public Benefit Organisation (PBO). This allows a tax benefit to donors of Youth for Christ. Youth for Christ may issue Section 18A receipts for bona fide donations, which allows for donations of up to 10% of taxable income to be deducted from such income, as stated in the Act.
The following donations qualify for tax certificates:
- Financial donations:
- In cash or
- By cheque or
- By postal order or
- By direct deposit or
- By EFT or
- By donating via the donate button on YFC/KZN website
- By a debit order or a credit card deduction
- Donations in Kind:
Donations in kind refer to the donation of goods made to Youth for Christ that will cause a saving on the budget and can be taken into the books as income e.g.:
- Non-perishable foods
- Consumable goods
- New clothes
- New capital items such as TV’s, stoves, fridges etc.
- Donations of necessary materials for maintenance work such as paint, glass, light fittings, geysers etc.
Second Hand Gifts:
Second hand goods do not usually qualify for a tax certificate. (There are exceptions to this rule e.g. the donation of a vehicle, where a market value can be determined.)
Note: Invoices for goods in kind must be submitted to Youth for Christ, to ensure the value on the tax certificate is correct. The onus is on the donor to keep a record of the cost and submit it to SARS.
Some preconditions:
- A donation must leave an audit trail and therefore must reflect as income on the books of Youth for Christ before a tax certificate can be issued.
- A valid postal address for the donor must appear on the tax certificate for it to be acceptable to SARS.
- 18A receipts will not be issued where the transaction involved a trade of any kind. E.g. Buying an item at a charity auction.
If you need clarity, please contact us at [email protected]
Please note that CONDITIONS apply.
For more information go to www.sars.gov.za