Tax deductible under Section 18A
Katlego NPC issues a Section 18A receipt for every qualifying donation. You deduct it from taxable income — up to 10% of taxable income in that year of assessment, with any excess carried forward to the next year.
✓Cash and in-kind donations both qualify
✓Receipt carries your tax reference and our PBO number
✓Keep it five years for SARS audit
Recognised on your B-BBEE scorecard
The same rand can be recognised under Socio-Economic Development, Enterprise Development or Skills Development, depending on how the donation is structured and who it reaches.
✓Structured against the pillar with your biggest gap
✓Beneficiary evidence supplied up front
✓Recognition letter issued with the receipt
Paperwork your verification agency accepts
Most donations lose points not because they were too small, but because the file was incomplete at verification. We build the file as the donation is made, not in the week before your audit.
✓Section 18A receipt + B-BBEE recognition letter
✓Beneficiary and spend breakdown
✓Loaded straight into your verification file
Section 18A limits and B-BBEE recognition depend on your own circumstances. Nothing here is tax or verification advice — we will run the numbers with you and, where needed, alongside your auditor.
Can one donation count for both tax and B-BBEE?
Yes. The Section 18A deduction and B-BBEE recognition are separate frameworks, so a single qualifying donation can be claimed against taxable income and recognised on your scorecard. What it cannot do is count twice on the scorecard — one contribution is recognised under one pillar.
What makes a donation "bona fide" for SARS?
It has to be a genuine gift: no quid pro quo, no reciprocal obligation, and no personal benefit back to the donor. Sponsorships and advertising spend are not donations. If you are unsure how a contribution will be treated, ask us before you pay it across.
Does the donation have to be cash?
No. Donations in kind — goods, equipment, property — can also qualify, provided they are properly valued and receipted. Skills and training contributions are handled differently again, and we will tell you which route gives you the better outcome.
How much does it actually save me?
A Section 18A deduction reduces your taxable income; it does not refund the donation. The real value depends on your taxable income, your marginal rate, and the 10% limit — which is exactly the calculation we run with you before you commit.
What is the difference between SED and ED?
Socio-Economic Development spend is measured on how it benefits people — it is about access and quality of life for black beneficiaries. Enterprise Development is measured on how it grows black-owned businesses. Same contribution, very different pillar, very different points.
We are a small business — is this worth it?
Often more so. Exempt Micro Enterprises and Qualifying Small Enterprises have shorter scorecards, so a modest, well-placed contribution moves a level far more easily than it does for a generic entity. We will tell you honestly if it will not.