NGO, NPO & Social Enterprise
Keep donors happy by ensuring section 18A receipts are compliant
Graeme Palmer 5 Jun 2023
No receipts? PBOs still mandated to file Sars null returns by 31 May
The clock is ticking for South African Public Benefit Organisations (PBOs). With the Sars IT3(d) third-party data submission deadline on 31 May 2026, Section 18A-approved organisations are facing a critical compliance countdown. All PBOs that issued tax-deductible donation receipts between 1 March 2025 and 28 February 2026 must accurately submit detailed donor and receipt information now to avoid falling foul of the taxman.
Image source: rawpixel.com from Magnific.com
Crucially, even PBOs that issued zero receipts during this tax year are required to submit a 'null' declaration. Sars mandates these null filings to mitigate the risk of identity fraud and false donor claims.
Inyathelo finance director, Soraya Joonas explained that the warning comes amid significantly heightened regulatory oversight across the non-profit sector. "We have observed that Sars is significantly increasing scrutiny of PBO compliance obligations, including IT12EI returns, Section 18A administration and IT3(d) submissions," she said. Joonas added that certain PBOs have already received notices of non-compliance.
The IT3(d) framework integrates NPOs into Sars' digital ecosystem, allowing the revenue authority to cross-reference donor tax claims directly against PBO records.
Failure to comply poses severe operational risks, potentially jeopardising an entity's PBO status or Section 18A approval. Furthermore, Sars is actively rejecting donation claims on donor tax returns where the corresponding PBO has failed to submit its IT3(d) data on time, potentially affecting donor trust and future funding.
To comply, NPOs must utilise appropriate Sars submission channels. Using e-filing accommodates manual entry for under 50 certificates, while bulk uploads via HTTPS are required for larger volumes.
Joonas reiterated that while compliance contributes to rising financial costs, it offers a vital opportunity to strengthen data systems, enhance transparency and reinforce public trust following South Africa's removal from the grey list by the Financial Action Task Force (FATF).