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Warning: You could lose out on the tax deduction from your Movember donations if you do it the wrong way

by , 06 November 2014
It's Movember. A time of year when men join together to form teams, grow their mustaches and try get people to donate money so they can, in turn, donate it to cancer research.

It's a great way to raise money for prostate cancer research and it offers you a handy tax deduction for donations. But be careful: Giving donations for Movember the wrong way could result in you losing out on the tax perk.

Keep reading to find out why, so you can avoid an extra tax bill...

 

Here's how your Movember donation will give you tax deduction

 
The great thing about events like Movember is they offer great tax benefits. For example, if ou make a donation through the Movember site, you'll get a tax certificate in return. Because Movember is linked to CanSA, it's a PBO. So on the tax certificate, you'll find CanSAs PBO reference number that you can use to claim a portion of your donation back from SARS in the form of a tax deduction.
 
The problem comes in if your employee asks you to give him a cash donation for Movember to give to a specific cancer charity. Here's why.
 

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Warning: A cash-in-hand donation could see you lose your tax deduction

 
If you give your employee the money in cash to give to his charity, he might not give you the documentation you need to claim the deduction in return.
 
This means you won't be able to get the money back from SARS.
 
So rather give your Movember donation through the Movember website and get everything you need to claim your reward from SARS. 
 
For more on donations tax, check out the Practical Tax Loose Leaf Service. It contains all the information you need to deal with this tax correctly.
 
If you have any questions about making donations tax-free, visit the Accounting and Tax Club and ask our experts. 
 

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