NON PROFIT ORGANISATIONS (NPO)
The primary objective of non profit organisations (NPO) is to benefit the community they serve. The income and property of non profit organisations is non-distributable as it is an organisation without share capital. Members and office bearers may receive reasonable remuneration for services rendered on behalf of the NPO. All registered NPO’s are issued with a Certificate Of Registration Of Nonprofit Organisation which reflects the name of the organisation, date of registration and registration number.
PUBLIC BENEFIT ORGANISATIONS (PBO)
In order for a NPO to register fro tax exemption they ave to register as a Public Benefit Organisation (PBO) in terms of Section 30 of the Income Tax Act. As an approved PBO the organisation can issue Section 18A certificates for any donations they receive A Section 18A certificate allows the donor (individual or company) to claim the value of the donation from their taxable income provided the donation does not exceed 10% of their taxable income.