Deductions for Donations to PBOs

Any amounts that are donated to tax exempt public benefit organisations (PBOs) that have been approved by SARS may be claimed as a tax deduction.

What is a public benefit organisation (PBO)?

A PBO is a non-profit organisation that operates with a particular purpose that is for the public benefit.

Charities, mosques, schools and churches are all examples of PBOs, as long as they are non-profit and have been approved by SARS. You can find a list of approved PBOs by clicking here. If a PBO is not listed, you can email the SARS tax exemption unit (teu@sars.co.za) to find out whether a particular organisation is an approved PBO.

Amounts that are donated to approved PBOs may be claimed as a deduction, provided that the following requirements are met.

When may you claim deductions for donations to PBOs?

  • You must have a receipt from the PBO (known as a section 18A receipt) as evidence of your donation to them
  • Donations that may be claimed in a year of assessment are limited to 10% of your total taxable income in a particular year of assessment
  • If you donate more than 10% of your taxable income, it may not be claimed in that year of assessment but may be claimed in the following year of assessment