The Rotary club of St Francis Bay is delighted to advise that the club’s application for exemption from income tax has been approved by the South African Revenue Service (SARS). As a result of this, going forward, the following exemptions will apply.
1. The club has been approved for the purposes of section 18A(1)(a) of the Income Tax Act and donations to the club will now be tax deductible in the hands of donors.
2. Donations made to the club are exempt from Donations Tax.
3. Donations made to the club are exempt from Estate Duty.
4. Donations made are exempt from the payment of the Skills Development Levy (SDL)
The effect of this excellent news is that St Francis Bay, and the surrounding community, stands to benefit significantly as Rotary seeks to extend its poverty relief efforts and to continue with its efforts to uplift the community and community organisations.
What does Section 18A status mean?
Any donor to the Rotary Club of St Francis Bay is now entitled to deduct the value of their donation from the donor’s taxable income. The reduction in the amount of tax payable will be dependent on the marginal tax rate that applies to the donor. In order for the donor to claim the tax deduction Rotary will need to issue a section 18A certificate that complies with SARS requirements.
The Rotary Club of St Francis sincerely believes that our Section 18A status could be a “game changer” for the club and is confident that this will allow the club to continue, and even to significantly enhance, the excellent work it does in the community.
Should anyone require any further information on the subject or should anyone wish to make a donation to the club please contact the treasurer of the club Mike Rishworth on 0823399294.