Durban — Public benefit organisations are calling on businesses and individuals to capitalise on the last few days of the current financial year by supporting a charity of their choice in exchange for a tax break.
The tax year ends on February 29 and economist Dawie Roodt said this meant donors who gave money to registered charities would only be taxed on their taxable income minus the donated amount.
“Essentially what you are doing is taking money out of your pocket but also taking money away from SA Revenue Service (Sars), so you and Sars both contribute to some sort of cause. I always say it’s better to give money to somebody else to spend rather than to give it to the state to spend, but you are paying a price for that because you are also giving money out of your pocket.”
Roodt said the donations were capped at 10% of your deductible income. And before handing over your cash, ensure that the organisation is registered, because if it isn’t you won't get the tax benefit.
“As an example, say my salary is R1 000, then I need to pay tax on R1 000. So I look at the Sars schedule and it says I pay 50% tax, so I need to pay R500 to Sars, as an example.
“Now if I donate R100, then my taxable income is R900. So then I pay R450 to Sars. But on a net basis I’m worse off because I paid Sars R450, but I paid the charity R100, so I paid R550 in total,” said Roodt.
In its appeal, The Association for the Aged (Tafta), said many of their elders survived on the government’s old age pension of R2 090 a month.
“No matter how frugal they are or how carefully they watch every cent, it’s even less than the minimum wage, which means elders who don’t have family or friends to help them go without things they need. Like food, medicines, or a roof over their heads.”
The organisation, which provides subsidised accommodation, meals, home-based care and other essential services to those over 60, urged donors not to wait until the last minute, because it might take a few days for the bank to clear the donation and if it wasn’t in the Tafta account by February 29, they would lose out on the tax benefit.
Action in Autism appealed to donors to support the cost of early childhood development for their little ones.
“Your support would mean the world to us and help our children.”
Also encouraging donors to do their bit is the Madrassa An-Noor for the Blind, which has a recording studio where “talking books” are recorded. It also has a Braille printing press where it prints Islamic books in Braille.
The Centre for Rehabilitation of Wildlife (Crow) in Yellowwood Park, which rescues, rehabilitates, and releases orphaned, injured and displaced animals, said a donation would give the animals a fresh start in a safe environment.
“Crow does not receive any government subsidies and operates solely on public generosity. By choosing to support Crow before the tax year concludes, you’re not only aiding in wildlife welfare and gaining a tax benefit, but also creating a lasting impact,” it said.
Elephants Alive said public donations supported their elephant conservation research, enabling them to address pressing conservation issues with scientifically proven solutions, preserve their habitats, and ensure a sustainable future for wildlife and people.
Independent on Saturday