Effective 1 March 2023, a section 18A certificate issued to a donor must display a number of changes as announced by the South Africa Revenue Service (SARS). The changes are designed to prevent abuse of the Section 18A tax deduction scheme and improve compliance. 

The main changes to Section 18A receipts are:

• Receipts must now include a unique receipt number. This will help SARS to track receipts and identify any possible fraudulent activity.
• Receipts must reflect the donors’ legal nature, be it a natural person, company or trust, including either the individual's identification number or the legal entity's registration number. 
• Inclusion of the legal entity’s trading name is required.
• Receipts are to include the donor's contact details, including their email address and income tax reference number (ITR) if available. This will help SARS to contact donors if necessary, and to verify their eligibility for the Section 18A tax deduction.
• Receipts must now be signed by an authorized person. This will help to ensure that receipts are genuine and that they have been issued by a legitimate organisation.
• Public benefit organizations (PBOs) must now keep a record, to be kept for five years, of all Section 18A receipts that they issue.

PBOs that do not comply with the new requirements for Section 18A receipts may be liable for penalties. It is therefore important for PBOs to familiarise themselves with the changes and ensure compliance.

If you have any questions about the changes to Section 18A receipts, you should contact SARS.

Non-profit organisations, it is time to update your section 18A receipts. We have the up-to-date template ready and available for you to use. Visit https://www.thedonation.org.za/for-pbos-npos to learn how DoNation works and then sign up your PBO by following our “Getting started guide”. The last step is to insert our widget on your Donations page in a prominent position. Now start receiving donations with minimal administration required. 

Any further questions? Reach out to us at info@thedonation.org.za.