What is a Section 18(A)

and how can it benefit you?

 

Did you know that by making a donation to Optimystic Bikers against Abuse NPC, you are not only helping us keep hope alive for our survivors, educating, empowering and elevating them to reclaim their lives, but you are also able to benefit from your donation?

 

We are registered as a Public Benefit Organisation and have been approved to issue Section 18(A) Certificates in terms of Section 18(A) of the Income Tax (Act 58 of 1962).  This means that if you, as a taxpayer, or your company, make a bona fide donation, in cash or in kind (material assets), this qualifies as a tax deductible expense.  However, the donation cannot exceed 10% of your taxable income.

 

The South African Revenue Service (SARS) determines a bona fide donation to be "a voluntary, gratuitous gift disposed of by the donor out of liberality or generosity, where the donee is enriched and the donor impoverished. There may be no quid pro quo, no reciprocal obligations and no personal benefit for the donor. If the donee gives any consideration at all it is not a donation. The donor may not impose conditions which could enable him or any connected person in relation to himself to derive some direct or indirect benefit from the application of the donation."

 

This means that income received for the sale of merchandise, entry fee to participate in an event or campaign, the purchase of an auction item or the sponsorship of an event do not qualify for a Section 18(A). 

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How do you get your Section 18A Certificate?

 

After making your donation, or if you have already made it, you can email finance@optimystic.za.net, to organise your certificate.  

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With regards to in-kind donations, Section 18(A) Certificates can be issued on receipt of an invoice.  If items are purchased from a supplier the receipt will be sufficient.  If items are donated from the company’s stock, then an invoice reflecting cost price will be required.  The certificate will be issued with the total amount less VAT.  These documents can be submitted by emailing finance@optimystic.za.net.

 

All queries regarding Section 18(A) Certificates, including requests, can be sent to finance@optimystic.za.net. 

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Thank you for your support and for believing in the work that we do.