How much can you claim for Section 18A donations?

For individuals, Section 18A donations are limited to 10% of taxable income. Any qualifying donation above this limit may be carried forward to a future tax year.

What document do you need to claim a Section 18A donation?

You need a valid Section 18A certificate from the approved organisation. The certificate should include the organisation's details, PBO number, donor details, donation date, donation amount and confirmation that it was issued for Section 18A purposes.

Is a Section 18A deduction the same as donations tax?

No. A Section 18A deduction can reduce your taxable income when you donate to an approved organisation. Donations tax is a separate tax that may apply when a South African resident donates money, property or other assets.

Can you claim school fees as a Section 18A donation?

No. School fees are paid in exchange for education services and are not Section 18A donations. A separate donation to an approved school fund may qualify if the fund is approved to issue Section 18A certificates.

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Section 18A donations

How charity donations can reduce your tax liability

Written by Alicia Posted 11 May 2026

Donating to a good cause can do more than help someone else. In some cases, it can also reduce your taxable income.

This is where Section 18A donations come in.

If you donate to a SARS-approved organisation and receive a valid Section 18A certificate, you may be able to claim that donation as a deduction on your tax return.

However, there are important rules to understand. Not every donation qualifies, not every charity can issue a Section 18A certificate, and there is a limit to how much you can claim in a tax year.

Here’s how it works.

What is a Section 18A donation?

A Section 18A donation is a donation made to an organisation that has been approved by SARS to issue Section 18A tax certificates.

These organisations are often approved Public Benefit Organisations (PBOs), government departments, institutions, boards, or bodies carrying out qualifying Public Benefit Activities (PBAs) listed in Part II of the Ninth Schedule to the Income Tax Act.

The important thing is not simply that the organisation does charitable work. It must also be approved by SARS for Section 18A purposes.

If the organisation is approved, it can issue a Section 18A certificate to donors. This certificate is your proof that the donation may qualify as a tax deduction.

What does a Section 18A donation do for your tax?

A Section 18A donation can reduce your taxable income.

This is different from a tax credit.

A tax credit reduces the actual amount of tax you owe. A tax deduction reduces the income SARS uses to calculate your tax.

Here’s a simple example.

Scenario 1: You donate R5,000

Thabo earns taxable income of R400,000 for the year.

He donates R5,000 to a SARS-approved Section 18A organisation and receives a valid Section 18A certificate.

His taxable income is reduced by R5,000.

This means SARS calculates his tax on R395,000 instead of R400,000.

The donation does not reduce his tax by the full R5,000. Instead, it reduces the income used to calculate his tax liability.

How much can you claim?

For individuals, Section 18A donations are limited to 10% of taxable income.

This taxable income excludes retirement fund lump sum benefits, retirement fund lump sum withdrawal benefits, and severance benefits.

You can donate more than 10% of your taxable income, but you may not be able to claim the full amount in the same tax year.

Any qualifying amount above the limit is carried forward and may be claimed in a future year, subject to the rules applicable at that time.

Scenario 2: Your donation is within the limit

Lerato’s taxable income is R500,000.

Her Section 18A deduction limit is 10% of R500,000, which is R50,000.

She donates R20,000 to an approved organisation and receives a valid Section 18A certificate.

Because the donation is below her R50,000 limit, she can claim the full R20,000 as a deduction.

Scenario 3: Your donation is above the limit

Sipho’s taxable income is R500,000.

His Section 18A deduction limit is R50,000.

He donates R80,000 to an approved organisation and receives a valid Section 18A certificate.

He can claim R50,000 in the current tax year.

The remaining R30,000 is carried forward to the next tax year and may be claimed then, depending on his taxable income and the Section 18A limit for that year.

What donations qualify?

A donation may qualify if:

• The organisation is approved by SARS for Section 18A purposes.
• You made a genuine donation, either in cash or in kind.
• You received a valid Section 18A certificate.
• The certificate includes all the required details.
• The donation was not made in exchange for a personal benefit.

In simple terms, you cannot donate to just any charity and assume SARS will allow the deduction.

You need the correct certificate from an organisation approved to issue Section 18A receipts.

What is a Section 18A certificate?

A Section 18A certificate is the document you need to claim your donation on your tax return.

It is issued by the approved organisation that received your donation.

For the donation to qualify, the certificate must clearly state that it was issued in terms of Section 18A of the Income Tax Act.

Your certificate should include details such as:

• The name of the organisation.
• The organisation’s PBO number.
• Your details as the donor.
• The date of the donation.
• The amount donated.
• Whether the donation was made in cash or in kind.
• Confirmation that the receipt was issued for Section 18A purposes.

From 1 March 2026, SARS also requires additional mandatory information on Section 18A receipts and IT3(d) submissions. This includes details such as the taxpayer’s income tax reference number and information relating to donations of property made in kind.

What changed from 1 March 2026?

The main Section 18A deduction rules have not changed.

The deduction is still limited to 10% of taxable income.

What has changed is the level of reporting and certificate detail required from approved Section 18A organisations.

From 1 March 2026, approved Section 18A organisations must include additional mandatory information in their reporting to SARS as part of the IT3(d) third-party data submission process.

Additional information now includes:

• Confirmation that the receipt was issued by a SARS-approved Section 18A organisation.
• A unique receipt reference number.
• The donor’s full name.
• The nature of the donor, for example an individual, company, or trust.
• An identity number or registration number.
• The donor’s income tax reference number.
• Contact details such as a phone number and email address.
• The donor’s trading name, where applicable.

What is IT3(d), and why does it matter?

IT3(d) is the third-party data submitted to SARS by approved Section 18A organisations.

This data includes details of the Section 18A tax-deductible receipts issued to donors.

The submission dates are:

Submission	Period covered	Due date
Bi-annual submission	1 March to 31 August	31 October
Annual submission	1 March to the last day of February	31 May

This does not mean you should ignore your own certificate.

You should still keep your Section 18A certificate and make sure the information on your tax return is correct.

This reporting process allows SARS to match the donor, the organisation, the receipt issued, and the donation amount against the taxpayer’s tax return.

Scenario 4: SARS has the donation, but the amount is wrong

Nandi donated R12,000 to an approved Section 18A organisation.

When she checks her tax return, SARS has pre-populated a donation amount of R10,000.

Nandi should not simply submit the return without checking the figures.

She should compare the amount on her Section 18A certificate to the amount on her tax return and correct the amount if necessary before submission.

Scenario 5: The donation is missing from the tax return

Johan donated R3,000 to an approved organisation and has a valid Section 18A certificate.

When he checks his tax return, the donation is not reflected.

This does not automatically mean he cannot claim it.

He should complete the relevant donation section on the tax return using the information on the certificate and ensure that the PBO number and donation amount are entered correctly.

How do employer donations work?

Some employees make donations through their employer.

For example, an employer may deduct a monthly amount from an employee’s salary and pay it to an approved organisation on the employee’s behalf.

In some cases, this donation is reflected on the employee’s IRP5 under source code 4030.

Scenario 6: Monthly workplace donation

Aisha donates R200 per month through her employer’s payroll giving programme.

Over the tax year, she donates R2,400.

The donation is reflected on her IRP5.

When she submits her tax return, SARS should use the IRP5 information when calculating her assessment.

Aisha should still check both her IRP5 and tax return to make sure the amount is correct.

Section 18A is not the same as donations tax

This is a common point of confusion.

Section 18A deals with claiming a deduction on your tax return for qualifying donations.

Donations tax is a separate tax that may apply when a South African resident donates money, property, or other assets.

So when people refer to “donations tax”, they may actually be referring to two different concepts:

• A Section 18A deduction, which can reduce taxable income.
• Donations tax, which may be payable by the donor in certain circumstances.

For most ordinary taxpayers donating to approved Section 18A organisations, the key issue is whether they have a valid Section 18A certificate and whether the donation qualifies for deduction.

Can you claim donations made to a school?

Sometimes, but not always.

Some schools may be approved for Section 18A purposes, but this must be confirmed.

A payment to a school is not automatically a Section 18A donation.

For example, school fees are not considered donations because they are paid in exchange for education services.

However, a separate donation to an approved school fund may qualify if the school or fund is approved to issue Section 18A certificates and provides you with a valid certificate.

Scenario 7: School fees vs school donation

Pieter pays R40,000 in school fees for his child.

He cannot claim this as a Section 18A donation because it is a payment for education services.

Later, he donates R5,000 to the school’s approved bursary fund.

The fund issues him with a valid Section 18A certificate.

The R5,000 donation may qualify, subject to the 10% deduction limit.

Can you claim donations made in goods instead of money?

Yes, in some cases.

A donation does not always have to be cash. It can also be a donation in kind, such as goods or property.

However, donations in kind must be properly recorded, including a detailed description of the donated asset and its value.

SARS also has specific requirements for how donations of property in kind must be reflected on Section 18A certificates.

It is important to note that the deductible value of donated assets may not always equal the market value, as SARS has specific valuation rules depending on the type of asset donated.

Scenario 8: Donating equipment

Megan donates computer equipment to an approved organisation.

The organisation is approved for Section 18A purposes and issues her with a valid Section 18A certificate.

The certificate should accurately describe the donated equipment and comply with SARS requirements.

Megan should keep the certificate and supporting documents in case SARS requests them later.

What if SARS disallows your donation claim?

SARS may disallow a Section 18A deduction if the information provided does not meet the required rules.

This could happen if:

• The PBO number is invalid.
• The organisation was not approved for Section 18A purposes.
• The approval was not valid for that tax year.
• The certificate does not state that it was issued under Section 18A.
• The amount claimed does not match the supporting documents.

Scenario 9: Invalid PBO number

David donates R10,000 to an organisation and receives a receipt.

He enters the donation on his tax return.

SARS later disallows the claim because the organisation’s PBO number was not approved for Section 18A purposes.

Even though David genuinely made the donation, he cannot claim the deduction unless the organisation was properly approved and the receipt meets the Section 18A requirements.

What should you check before claiming?

Before claiming a Section 18A donation on your tax return, check the following:

• Did you donate to a SARS-approved Section 18A organisation?
• Did you receive a valid Section 18A certificate?
• Does the certificate show the organisation’s PBO number?
• Does the certificate state that it was issued in terms of Section 18A?
• Does the amount match what you actually donated?
• Was the donation made during the correct tax year?
• Are you within the 10% deduction limit?
• If SARS pre-populated the donation, does it match your certificate?

How TaxTim helps

Section 18A donations can be straightforward when your certificate is correct and your tax return is completed properly.

The difficult part is often knowing whether the donation qualifies, where to include it on the return, and what documents you should keep.

TaxTim guides you through your tax return in plain English. We ask simple questions, help you include your Section 18A donation details correctly, and make sure you know what supporting documents to keep in case SARS requests them.

Quick summary

• A Section 18A donation can reduce your taxable income.
• You need a valid Section 18A certificate.
• The organisation must be approved for Section 18A purposes.
• The deduction is limited to 10% of taxable income.
• Excess qualifying donations may be carried forward to a future tax year.
• From 1 March 2026, approved organisations must provide more detailed Section 18A reporting to SARS.
• Always compare your tax return to your Section 18A certificate before submitting.

This entry was posted in TaxTim's Blog and tagged Donations, Deductions, SARS & eFiling, Tax Refund . Bookmark the permalink.

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