Making a difference in the lives of children with special needs is a noble cause, and at Little Gems, we rely on the generosity of our donors to provide essential care and support. But did you know that your donations can also benefit you financially? In South Africa, donations to Non-Profit Organizations (NPOs) like Little Gems can offer significant tax benefits. Here’s how your charitable contributions can be a win-win for you and the children we serve.
Understanding Section 18A
The South African government recognizes the importance of supporting NPOs and provides tax incentives to encourage donations. Under Section 18A of the Income Tax Act, donations made to approved NPOs are tax-deductible. This means that when you donate to Little Gems, you can claim a portion of your donation back from the taxman, reducing your taxable income.
How It Works
Eligibility for Tax Deductions: To qualify for a tax deduction, your donation must be made to an NPO that has been approved under Section 18A. Little Gems is one such organization, ensuring that your contributions are eligible for tax benefits.
Obtaining a Section 18A Certificate: When you make a donation to Little Gems, we will issue you a Section 18A certificate. This certificate serves as proof of your donation and must be retained for your tax records. It includes important details such as the amount donated, the date of the donation, and the NPO’s details.
Claiming Your Deduction: To claim your tax deduction, you need to submit your Section 18A certificate with your annual tax return. The donation amount will then be deducted from your taxable income, potentially reducing the amount of tax you owe.
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