What is a Section 18A donation in South Africa?

A donation made to a Public Benefit Organisation (PBO) that is also approved under section 18A of the Income Tax Act. The PBO issues you a 18A receipt and you can deduct the donation from your taxable income, capped at 10% of taxable income for the year. Excess donations roll forward to future tax years.

Which organisations can issue Section 18A receipts?

Only PBOs that have been specifically approved by SARS for 18A status. Approval is narrower than general PBO status — it's restricted to PBOs in education, healthcare, welfare, conservation, sport development, religion (with conditions), and a few other listed categories. Always ask the organisation for their 18A reference number before donating with the deduction in mind.

How much donation can I deduct?

Up to 10% of your taxable income for the year. So if your taxable income is R600,000, the maximum deductible 18A donation is R60,000. If you donate more than that in a year, the excess carries forward to next year's return — you don't lose it. Donations made to non-18A organisations (most NGOs, your local soccer club, individuals) aren't deductible at all.

What does a valid Section 18A receipt look like?

It must include the PBO's name, address, and 18A reference number; the donor's full name, address, and ID/tax number; the date and amount of the donation; a statement confirming the receipt is issued under section 18A; and a description of the goods (if a non-cash donation). Without all of this, SARS can disallow the deduction. From March 2023, PBOs also must report 18A donations to SARS via IT3(d) submissions, so SARS pre-fills these on your ITR12.

Section 18A donation deductions · invoicebook.co.za

The short version

Donate to an organisation with section 18A approval, get a compliant 18A receipt from them, and deduct the donation from your taxable income on your ITR12. The deduction is capped at 10% of your taxable income for the year, and any excess rolls forward to future tax years. Donations to organisations that aren't 18A approved — or to individuals, political parties, or your local sports club — aren't deductible.

Who can issue 18A receipts

SARS distinguishes between two related approvals:

PBO status (under section 30) — confers tax-exempt status on the PBO itself. Most registered NGOs and charities have this.
Section 18A approval — a separate, additional approval that lets the PBO issue tax-deductible donation receipts. Restricted to PBOs whose work falls into specific categories listed in Part II of the Ninth Schedule: welfare and humanitarian, healthcare, education and development, conservation and animal welfare, religion (in some circumstances), cultural, conservation, and a few others.

Always ask the organisation for their 18A reference number before making a donation that you intend to deduct. If they don't have one, the donation isn't deductible — even if the cause is excellent. Universities, large hospitals, established welfare organisations (e.g. SPCA, Gift of the Givers, Cotlands) typically have 18A status; smaller community projects often don't.

What counts as a donation

A "donation" is a gratuitous transfer — you give without expecting anything material in return. So:

Counts: A R5,000 cheque to a 18A-approved educational trust. Donating school uniforms (valued at fair market value).
Doesn't count: Buying a R5,000 ticket to a charity gala dinner — only the part above the value of the dinner is a donation. Sponsorship payments where you receive advertising or visibility in return.
Doesn't count: Donations made on condition that they benefit specific individuals (e.g. paying a specific child's school fees through a school).

The 10% cap

For an individual with taxable income of R600,000, the maximum deductible 18A donation is R60,000. If you donate R80,000:

R60,000 is deductible this year, reducing taxable income to R540,000
R20,000 rolls over to next year's return
You don't lose the deduction — but the cash-flow benefit is delayed

For companies and trusts, the same 10% applies but is calculated on the entity's taxable income.

What goes on a valid receipt

SARS-compliant 18A receipts must include:

PBO name, address, and 18A reference number
Donor's full name, ID number (or tax reference number), and address
Date and amount of the donation
A statement: "This receipt is issued for purposes of section 18A of the Income Tax Act, 1962."
For non-cash donations: a description and the fair market value
An undertaking that the donation will be used solely for the PBO's qualifying activities

Missing any of those and SARS can disallow the claim under audit.

The new IT3(d) reporting

From March 2023, all 18A-approved PBOs must submit IT3(d) declarations to SARS at year-end, listing every donor and the amount donated. Two practical effects for you as a donor:

SARS pre-fills your ITR12 with donations from registered PBOs — you don't have to type the amounts in
If a PBO didn't issue you a 18A receipt or didn't include you in their IT3(d), the deduction simply won't pre-fill, and adding it manually invites a verification request

Always retain the physical 18A receipt for at least five years. SARS audits sample these regularly.

How it interacts with donations tax

South Africa has a separate donations tax at 20% (25% above R30 million cumulative), levied on the donor when they give a donation over the R150,000 annual exemption. Donations to any approved PBO (whether 18A or not) are exempt from donations tax — there's no 20% punitive tax on giving to a charity. So Section 18A is the income-tax deduction; the donations-tax exemption is a separate, automatic benefit. See our donations tax calculator for the donations tax side.

Practical takeaway

If you give regularly to causes, ask each one whether they're 18A approved and request the receipt — many people unknowingly give without claiming. For high earners with capacity to give R50,000+, prefer 18A organisations specifically: a R50,000 donation at a 41% marginal rate effectively costs you R29,500 net. The 10% cap is generous; very few individual donors hit it in practice.