1. Giving to charity makes you feel good and you receive a tax deduction

Donating to charity is a major mood-booster. The knowledge that you’re helping others is hugely empowering and can make you feel happier and more fulfilled. Research has identified a link between donating to charity and increased activity in the area of the brain that registers pleasure – proving it really is far better to give than to receive.

One of the ways people can support a charitable cause is through financial donation and apart from the feel-good factor another benefit is that you can deduct donations from your income tax. This means you will pay less tax, as long as the non-profit company or charity you support is a registered Section 18A organisation.  You as the taxpayer will be able to claim a tax deduction up to a certain limit.

2. Giving to charity strengthens personal values

Having the power to improve the lives of others is, to many people, a privilege, and one that comes with its own sense of obligation. Acting on these powerful feelings of responsibility is a great way to reinforce our own personal values and feel like we are living in a way that is true to our own beliefs.

3. Giving is more impactful than ever

Many people are concerned that their donations to charity may be reduced by tax or administrative costs, preventing the full amount from reaching the people of causes they really want to help.

Since the Johnson Rose Cancer Foundation is a registered Section 18A organisation, this fear of donations being reduced by tax or administrative costs should not be a concern.

4. Giving can reintroduce friends and family to the importance of generosity

Knowing someone who gives to charity can be a catalyst for giving to charity yourself. By donating, you may well be helping to remind friends and family of causes they are passionate about and would like to support. Your charitable donations can even bring about a family-wide effort to back a charity that have special significance to you as a group.

5. Giving to charity build and strengthens community

The COVID 19 pandemic has encouraged many of us to take a closer look at our local communities and to consider how we can make a difference. Giving to charity, and particularly locally, can be a powerful way to invest in the people and places that make up our everyday lives.

A quick guide to donating

Q: Where do I get my Section 18A Certificate?

A: The Johnson Rose Cancer Foundation will issue Section 18A certificates at the end of the tax year.   

Q: Are there any terms and conditions I should be aware of?

• The donation must be bona fide, meaning that nothing can be expected to be given in return for the donation.
• The original certificate must be kept in a safe place and made available to SARS if requested.
• The Section 18A certificate must have the correct details of the taxpayer.
• A taxpayer may not claim both BBBEE points and a Section 18A tax deduction.

Q: How does the Section 18A tax benefit work?

• Taxpayers deduct their donations from their taxable income, lowering the total tax due. The reduction will depend on your marginal tax rate.
• For example: If your marginal tax rate is 35%, a donation of R1 000 will result in a reduction of R350 in tax payable.