SARS Public Benefit Organisation (PBO)

AAAKEE is registered with the South African Revenue Services (SARS) as a Public Benefit Organisation (PBO) and, as such, is entitled to issue Section 18A Invoices to its donors for financial and in-kind contributions received.

The organisation applied to the Commissioner of the South African Revenue Services (SARS) for approval as a Public Benefit Organisation (PBO), in terms of Section 30 of the Income Tax Act (58 of 1962). The application was granted by the Commissioner, and the certificate may be downloaded from the link at the bottom of this page.

We are entitled to issue our donors with Section 18A Tax Invoices, which serve as receipts upon verification, for bona-fide donations, which allows for contributions of up to 10% of taxable income to be deducted from such income, as stated in the Act.

Donations that qualify for tax invoices are:

1. Financial aid in cash, by cheque, postal order, or direct deposit, Electronic Funds Transfer, or the BackaBuddy platform.
2. In-kind contributions such as non-perishable foods, consumable goods, and capital items, that have been value-appraised.

We cannot issue an invoice for second-hand gifts, unless a market value can be assigned to them. An example of a qualified second-hand gift is a vehicle.

For donations that are made via the BackaBuddy platform (or any other online fundraising platform we elect in the future), we are only able to issue an invoice for the actual amount received. To clarify, these platforms generally take a commission from each donation they process. As we do not see those commissions as expenses (that is, we do not receive invoices from the platforms), we may only issue the invoice for the amount rendered after commissions (and, in some cases, base fees). For more information, please contact us.

Preconditions:

1. A donation must be verifiable in order for it to be recognised by SARS. Donor bank records should be compared to the issued invoice for verification purposes.
2. Where a transactional trade is involved, an invoice may not be issued.
3. Invoices must contain a valid physical or postal address of the donor, along with their name, and information about the donation. The precondition here is that donors should provide any applicable information that is to appear on their invoices.