Donating to PPS Foundation has benefits
Donating to PPS Foundation has benefits
During unprecedented and difficult socio-economic times like the one we are experiencing because of the coronavirus pandemic, we should remember those who are less fortunate. Oprah Winfrey, a global media personality and philanthropist, reminds us that the only way forward at times like this is by joining hands.
“I choose to rise up out of that storm and see that in moments of desperation, fear, and helplessness, each of us can be a rainbow of hope, doing what we can to extend ourselves in kindness and grace to one another. And I know for sure that there is no them – there’s only us,” she explains.
PPS Foundation is grateful for the donations it has received from individuals and companies over the years. We understand that people give for different reasons. There is a general misconception that it is only companies who make donations, that derive tax benefits. However, there are also tax benefits for individuals who make donations. But you can only benefit when you donate to a public benefit organisation (PBO) such as the PPS Foundation, which is recognised by the South African Revenue Service (SARS).
Individuals who make donations automatically receive a Section 18A certificate from the PPS Foundation for use in the relevant financial year, e.g. 1 March 2021 to 28 February 2022. When the annual income tax filing season opens, donors can use the details furnished in the certificate to SARS when filing their tax returns.
It should be borne in mind that to claim a deduction, a certificate in terms of section 18A(2)(a) must be obtained and used to support the tax deduction claimed.
With minimal administration work, the individual will not only support a worthy cause but could also pay less tax. The example* below illustrates the reduction in tax liability that an individual may receive upon donation to the PPS Foundation.
Example A – No donation made
- Taxable income – R400,000
- Tax liability – R 74 100.00, assuming the taxpayer is below the age of 65 and only the primary tax rebate of R15 714 is used and that no medical aid credits exist i.e. taxpayer has no medical aid.
Example B – Donation made
- Taxable income – R400,000
- Less donation – R30,000 (donation cannot be more than 10% of taxable income to qualify for a deduction)
- New taxable income – R370,000
- Tax liability – 64,800.00, assuming the taxpayer is below the age of 65 and only the primary tax rebate of R15 714 is used and that no medical aid credits exist i.e .tax payer has no medical aid.
*DISCLAIMER: This example is for illustrative purposes only and does not contain individual tax advice.
Donate from as little as R100 on the PPS Foundation’s safe and easy-to-use portal at https://ppsfoundation.pps.co.za to receive your Section 18A certificate.