In order to qualify as a PBO an entity needs to have as its main object the carrying out of one or more public benefit activities in a non-profit manner substantially in South Africa. These activities need to qualify in one or more of the following categories:

• welfare and humanitarian
• health care
• land and housing
• education and development
• conservation, environment and animal welfare
• religion, belief or philosophy
• cultural
• research and consumer rights
• sport
• providing funds, assets or other resources
• support services to other PBO’s
• hosting certain international events

Note: Only the activities in bold qualify for section 18A status.

Donations to approved public benefit organisations are exempt from donations tax and deductable for income tax as follows if section 18A status has been approved:

• Company donations limited to 10% of taxable income
• Individual donations limited to 10% of taxable income excluding any retirement fund lump sum benefits
• Any excess above the 10% cap above may be rolled over to subsequent years