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Worried your Movember donation will trigger donations tax? Here's how you can donate worry free

by , 07 November 2014
It's Movember again and men everywhere are getting hairy in the name cancer awareness.

Does your company want to donate money through the Movember site to a group of employees who have a team on the website?

Are you holding back because you're worried your donation will trigger donations tax?

We're here to tell you to go ahead and make that donation.

Here's why...

 

Here's why you can make that Movember donation without worrying about donations tax

 
Movember is associated to the Cancer Association of South Africa (CanSA). Since CanSA is a public benefit organisation (PBO), it's a tax exempt organisation. 
 
This means Movember falls under CanSA tax exempt umbrella.
 
Anytime you donate to a PBO, you won't pay donation tax on that donation. In fact, quite the opposite.
 
If you donate through the Movember site, you'll receive a tax certificate you can use to claim a portion of your donation back from SARS. 
 
This means instead of donations tax, you get a tax perk.
 
But there is one possible scenario that will trigger tax despite donating to a PBO.
 
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Remember this one catch that will trigger donations tax if you donate to the Movember site

 
If you donate more than 10% of your company's total earnings for that year, you will trigger donations tax.
 
This applies regardless of what kind of organisation you donate to, PBO or not.
 
So go ahead, make your donation to Movember, and enjoy your tax perk. Just bear in mind how much you're donating so you don't trigger donations tax by mistake.
 
If you need more information about donations tax, check out the Practical Tax Loose Leaf Service. It contains all the information you need to handle donations tax so you don't run into trouble with SARS. 
 

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