For South African taxpayers: You may claim up to 10% of your income1 in a given tax year from SARS as a charitable donation. To do this, you simply specify the Foundation’s PBO number on your tax return: 930052029. You will be issued a Section 18A tax certificate once we receive your donation – please make sure that we have your up to date residential / tax address for this purpose (you can update your details when making your donation).
For donations from the US: You may donate to the GSB Foundation via the UCT America Fund, a registered 501(c)(3) entity – Johanna Fausto runs the Fund and will gladly assist you with regards to doing this tax efficiently. More info on donating from the US can be found here: https://goo.gl/oQMkky
For donations from the UK: You may donate to the GSB Foundation via the UCT UK Trust, a registered charitable trust – Angela Edwards runs the Trust and will gladly assist you with regards to doing this tax efficiently. If donating cash, please be sure to do so via Gift Aid; this allows the UCT UK Trust to claim an additional 25% of your donation from H.M. Customs and Revenue at no additional cost to you. More info on donating from the UK can be found here: https://goo.gl/2XE6Oy
For donations from Europe, including Belgium, Bulgaria, Croatia, France, Germany, Hungary, Ireland, Italy, Luxembourg, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Switzerland: You may donate to the GSB Foundation via a charity that is a member of the Transnational Giving Europe network.This will be facilitated via the UCT UK Trust. More info on Transnational Giving Europe can be found here: http://goo.gl/n7k4ds
Preferential tax treatment is granted to organisations established for the benefit of the general public, which have been approved by the Tax Exempt Unit as Public Benefit Organisations (“PBOs”) – such as the GSB Foundation. The main tax benefits available to PBOs are that they are fully exempt from paying income tax if they carry on no or limited trading activities. PBOs are also exempted from the payment of capital gains tax when disposing of an asset, provided that the asset was not used to carry on business or trading activities. Approved PBOs are also exempt from the payment of transfer duty when acquiring immovable property, provided the property is used solely or substantially to carry on public benefit activities. PBOs are also exempt from donations tax and dividends tax. Individuals can make donations to PBOs without paying donations tax or capital gains tax.
If an individual donates shares to a PBO which are standing at a gain, no capital gains tax or donations tax will be payable by the donor as a result of the donation. Neither will the PBO pay any securities transfer tax on the receipt of the shares. Once the shares are owned by the PBO, no dividends withholding tax (at 15%) will be due. If the PBO subsequently decides to sell the shares, it can do so without paying any capital gains tax. If individuals make a bequest to a PBO in their Will, the bequest will be exempt from estate duty. In short, donating shares or unit trusts, which are standing at a gain, is a very tax efficient way of funding a PBO.
Property in kind
A taxpayer can claim a deduction for a donation of certain property in kind to section 18A approved organisations, such as shares. There are specific valuation rules which apply to determine the amount of the deduction for donations of property in kind – please contact us to discuss this option.
1 The donation deduction is available to all tax payers (individuals, trusts and companies). The deduction calculation is based on taxable income including the taxable portion of any capital gains, but excluding taxable income from any retirement fund lump sum benefit / withdrawal benefit and severance benefit. Donations in excess of 10% of annual taxable income may be carried forward and treated as a donation in the next year.