The Practical Tax Loose Leaf Service says a donation is when:
When does a donation take effect?
A donation will take effect when you meet these legal requirements:
When will your donation be considered an allowable deduction?
If you donate to a public benefit organisation (PBO) that's approved to issue Section 18A receipts, or to the government, your donation will be an allowable deduction.
But this allowance is limited to a maximum of 10% of your taxable income for the year.
Here's a useful tip for you: The Practical Tax Loose Leaf Service recommends you get the necessary Section 18A Receipt from the public benefit organisation to prove your donation.
This receipt is any form of documentation that proves the PBO received your donation.
Well there you have it. If you make a donation to a public benefit organisation (PBO) or to the government, your donation will be considered an allowable deduction. This will only be the case if you made the donation to a PBO that's authorised to issue S18A receipts.
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