Inyathelo: The South African Institute for Advancement Comments on the 2013/4 Budget
Categories: ALL THE NEWS , HEADLINES, Government
Budget will encourage greater giving
Taking into account the very public outcry relating to the funding crisis experienced by many non-profit organisations, Inyathelo: The South African Institute for Advancement welcomes the proposal by Treasury to allow donations in excess of 10 percent of taxable income in any given year to listed Public Benefit Organisations to be rolled over as allowable deductions in subsequent years
While further clarity is required, this is likely to mean that where a donor is in a position to make a substantial contribution in one particular year, the tax benefits will be extended, thereby encouraging such contributions. This could also possibly apply to pledges to fund a PBO over a number of years.
We also welcome the suggestion that consideration will be given to amending the rules governing the amount of funding that must be distributed where PBOs provide funding to other PBOs. This could enhance their capacity to forward plan, to possibly build a capital base to secure their future sustainability and to guarantee on-going support to the PBO sector by other PBOs, such as charitable trusts and philanthropic foundations.
It is also noted that government has proposed that the R14 million turnover threshold for small business corporations be increased to R20 million with a revised graduated tax structure. We are pleased to see that government will also explore the application of the same rate structure to the trading activities of PBOs in the light of the current funding crisis faced by many organisations in civil society.
Inyathelo: The South African Institute for Advancement
Tel: 082 494 2996