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SARS Donations Tax Deduction (2026)

Complete guide to tax deductions for donations in South Africa for 2026. Learn which donations qualify, deduction limits, how to claim, required documentation, and how donations reduce your tax.

Tax Expert
March 5, 2026
11 min read
SARS Donations Tax Deduction (2026)

SARS Donations Tax Deduction (2026)

Donations to approved organizations can provide tax deductions in South Africa. Understanding which donations qualify, deduction limits, and how to claim them helps you maximize tax benefits while supporting worthy causes. This comprehensive guide covers everything you need to know about donation tax deductions for 2026.

What Donations Qualify?

Approved Organizations

Qualifying Recipients:

  • Public benefit organizations (PBOs)
  • Approved by SARS
  • Registered with SARS
  • Meet specific criteria

Types:

  • Charitable organizations
  • Educational institutions
  • Religious organizations
  • Other approved PBOs

Important:

  • Must be approved by SARS
  • Check approval status
  • Verify before donating
  • Get proper receipts

Qualifying Donations

What Counts:

  • Cash donations
  • Donations in kind (subject to rules)
  • Regular donations
  • One-time donations

Requirements:

  • To approved PBO
  • Proper documentation
  • Within limits
  • Meet criteria

Deduction Limits

Annual Limits

2026 Limits:

  • Maximum deduction: 10% of taxable income
  • Subject to specific rules
  • Per tax year
  • Cannot exceed limit

Calculation:

  • Based on taxable income
  • 10% of income
  • Maximum deduction
  • Per year

Understanding Limits

10% Rule:

  • Can deduct up to 10% of taxable income
  • In donations to approved PBOs
  • Per tax year
  • Subject to verification

Example:

  • Taxable income: R500,000
  • Maximum deduction: R50,000 (10%)
  • If donate R60,000, can only deduct R50,000
  • Remaining R10,000 not deductible

How to Claim Donation Deductions

On Your Tax Return

Process:

  1. Complete tax return
  2. Enter donation amounts
  3. Include donation certificates
  4. Deduction calculated
  5. Review and submit

Information Needed:

  • Donation certificates
  • Amounts donated
  • Organization details
  • Other relevant information

Donation Certificates

What They Show:

  • Organization details
  • Donation amount
  • Date of donation
  • Tax reference number
  • Other information

How to Get:

  • From organization
  • Usually issued automatically
  • Request if not received
  • Keep for records

Documentation Requirements

Required Documents

Donation Certificates:

  • Official certificates
  • From approved PBOs
  • Show donation details
  • Required for deduction

Other Documentation:

  • Proof of payment
  • Bank statements
  • Receipts
  • Other supporting documents

Record Keeping:

  • Keep all certificates
  • Maintain for 5 years
  • Organize properly
  • Easy to access

Types of Donations

Cash Donations

Most Common:

  • Direct cash donations
  • Bank transfers
  • Credit card donations
  • Other cash methods

Documentation:

  • Donation certificate
  • Proof of payment
  • Bank statement
  • Other records

Donations in Kind

What They Are:

  • Non-cash donations
  • Goods or services
  • Subject to specific rules
  • Valuation required

Requirements:

  • Proper valuation
  • Documentation
  • Specific rules apply
  • May have limitations

Benefits of Donation Deductions

Tax Savings

How It Works:

  • Reduces taxable income
  • Lowers tax liability
  • Immediate benefit
  • Supports causes

Example:

  • Donate R10,000
  • Reduce taxable income by R10,000
  • Tax savings at your rate
  • Net cost less than donation

Supporting Causes

Additional Benefits:

  • Support worthy causes
  • Make a difference
  • Tax-efficient giving
  • Social impact

Common Questions

How much can I deduct for donations?

Up to 10% of your taxable income per year in donations to approved PBOs.

Do all donations qualify?

No, only donations to SARS-approved public benefit organizations (PBOs) qualify for deductions.

Do I need a certificate?

Yes, you need an official donation certificate from the approved organization to claim the deduction.

Can I deduct donations to individuals?

No, donations to individuals don't qualify. Only donations to approved PBOs qualify.

What if I donate more than 10%?

You can only deduct up to 10% of your taxable income. The excess is not deductible but still supports the cause.

Can I carry forward excess donations?

Generally no, the 10% limit applies per year and cannot be carried forward.

Best Practices

Verify Organizations

Before Donating:

  • Check PBO approval status
  • Verify with SARS if needed
  • Ensure proper certificates
  • Confirm eligibility

Keep Records

Maintenance:

  • Keep all certificates
  • Maintain proof of payment
  • Organize documents
  • Keep for 5 years

Plan Donations

Considerations:

  • Annual limits
  • Timing of donations
  • Tax planning
  • Cause selection

Frequently Asked Questions

How do I know if an organization is approved?

Check the organization's PBO status, ask for their tax reference number, or verify with SARS.

Can I deduct donations made in previous years?

No, donations are deductible in the year they're made, subject to that year's limits.

What if I don't have a donation certificate?

Contact the organization to request one. You need the certificate to claim the deduction.

Are international donations deductible?

Generally no, only donations to South African approved PBOs qualify for deductions.

Can businesses claim donation deductions?

Yes, businesses can also claim donation deductions subject to similar rules and limits.

Conclusion

Donation tax deductions provide a way to reduce your tax while supporting worthy causes. By understanding which donations qualify, keeping proper documentation, and claiming correctly, you can maximize tax benefits. Remember that only donations to SARS-approved PBOs qualify, and there's a 10% of taxable income limit per year.

For assistance with donation deductions or to verify PBO approval, consult a qualified tax practitioner or check with SARS.


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About the Author
Tax Expert

Tax Expert

Specializing in South African tax law, SARS eFiling, and tax compliance with extensive knowledge of the South African Revenue Service.