As the 2026 tax year draws to a close on 28 February, South African nonprofit organisations need to ensure their Section 18A tax certificates, donor records, and tax compliance processes are in order. Beyond meeting SARS requirements, tax year-end is a strategic opportunity to strengthen donor relationships, increase fundraising, and position your organisation for a compliant and successful financial year ahead.
Use Tax Season as a Compelling Fundraising Moment for Your NPO
For many donors, tax season is when charitable giving becomes top of mind. Donations to approved public benefit organisations (PBOs) with Section 18A status can reduce taxable income. This makes it the perfect time to remind supporters that their generosity can have both social impact and tax benefits under the Income Tax Act.
Clear, timely communication is key. Let donors know:
- The deadline for donations to qualify for a tax deduction in South Africa
- The impact their contribution will make to your public benefit activities
- That they will receive a valid Section 18A receipt for their records
A simple email campaign, social media reminders, or a short “tax season appeal” on your website can go a long way.
How to Encourage Tax-Deductible Donations Before Year-End
People often wait until the last minute to make tax-related decisions. Make it easy for them by sharing plain-language explanations of how Section 18A works. Highlight suggested donation amounts and what they fund. Offer quick, secure online donation options.
Storytelling is powerful here. Pair tax reminders with real examples of lives changed or programmes sustained through donor support. Remind them that their donation qualifies for a deduction on their tax return. This helps them see both the human impact and the financial benefit of giving before the tax year closes.
Don’t Forget Corporate Donors and Their Tax Exemption Benefits
Companies are also finalising their financials and may have unused CSI or philanthropy budgets. This is a prime time to approach existing corporate partners for top-up donations. It’s also great for reaching new companies looking to improve their tax efficiency and social impact.
Make your pitch concise and professional. Emphasise your organisation’s compliance with SARS requirements, good governance, and ability to issue Section 18A receipts promptly. For corporates, reliability and paperwork matter just as much as purpose. They need proper documentation for their income tax filings. PBOs that can deliver this quickly stand out.
Getting Your PBO Compliance and Donor Records in Order
Behind the scenes, now is the time to ensure your organisation meets all requirements:
- Your donor records must be accurate and up to date.
- Check that your Section 18A approval details from the South African Revenue Service are correct.
- Make sure your donation reporting is clean and auditable.
Strong admin doesn’t just support tax compliance. It builds donor trust. NPOs registered with the NPO Directorate under the Non-Profit Organisations Act should also verify their exempt status. This includes confirming your PBO number and ensuring you meet Section 30 requirements of the Income Tax Act.
What South African NPOs Need to Know About Tax Filing
Every public benefit organisation in South Africa must understand their tax obligations. SARS requires that NPOs with income tax exemption file annual returns. Your financial statements must be prepared and submitted on time. Missing deadlines can affect your tax exempt status.
The tax year in South Africa runs from 1 March to 28 February. This means 2026 donations must be made by 28 February 2026 to count for the current tax year. Make sure your donors understand this deadline. Send reminders early so they have time to act.
The Bottom Line for Nonprofit Organisations in South Africa
The end of the tax year is not just a deadline. It’s an opportunity. With the right messaging, systems, and follow-through, South African nonprofits can turn tax season into a meaningful fundraising and relationship-building moment. Whether you’re a small NPO or a large PBO, getting your Section 18A processes right matters.
Simplify Your Section 18A Receipting with ActiveDonor
Issuing Section 18A certificates doesn’t have to be stressful or time-consuming. ActiveDonor makes it easy to manage donor data, track qualifying donations, and issue compliant Section 18A certificates quickly and accurately. You can focus on fundraising, not paperwork. If you want to streamline your tax year-end and look professional to donors, ActiveDonor has you covered.
Benefits of using ActiveDonor:
- Generate professional Section 18A tax certificates that meet all SARS requirements
- Send receipts directly to donors and securely file them in one location
- Automate your IT3(d) submission to eliminate manual data entry and reduce errors
- Maintain accurate, POPIA-compliant donor records year-round
- Improve transparency and reduce admin burden for your NPO
Ready to simplify your Section 18A compliance?
Book a free demo today!
