Section 18A approval is not automatic. Your organisation might already be a registered NPO and even a SARS-approved PBO, and still not have Section 18A status. The approval is a separate step — and without it, any certificates you issue are worthless for tax purposes.
Step 1 — Register your organisation
Before approaching SARS, you need a legal entity. In South Africa the two most common structures for non-profits are:
- A Non-Profit Company (NPC) registered with CIPC under the Companies Act 71 of 2008
- A Trust registered with the Master of the High Court
- A Voluntary Association (informal, less common for fundraising entities)
NPO registration with the Department of Social Development (under the NPO Act 71 of 1997) is optional but useful — it gives you an NPO number which demonstrates legitimacy to donors.
Step 2 — Apply for PBO status with SARS
PBO approval is what gives your organisation income tax exemption. You apply by submitting an IT77C form (or via eFiling). Verify current form and process: sars.gov.za SARS will assess whether your organisation's activities fall within the approved Public Benefit Activities listed in the Ninth Schedule of the Income Tax Act. This process can take several months.
Your PBO approval letter will state your PBO number, which begins with “93” for most non-profits. Verify: sars.gov.za
Step 3 — Apply for Section 18A approval
PBO status alone does not grant Section 18A authority. You must apply to SARS specifically for Section 18A approval, demonstrating that your organisation carries out activities listed in Part II of the Ninth Schedule. Verify current qualifying activities list: sars.gov.za Common qualifying activity categories include welfare and humanitarian, health care, education and development, conservation of natural resources, and cultural activities — but the full approved list is on the Ninth Schedule.
What SARS looks at during assessment
- Your constitutive documents (MOI, trust deed, or constitution) must prohibit private benefit and state that assets are distributed to another PBO on winding up
- The activities your organisation actually carries out must match an approved category
- You must demonstrate that Section 18A donations will be used exclusively for those approved activities
Common mistakes that delay approval
- Constitutive documents that allow private benefit (even unintentionally)
- Activities described too vaguely — SARS wants to see specific programmes, not broad mission statements
- Applying for PBO status and Section 18A status at different times and then losing track of where each application is
Once you have approval
You will receive a letter from SARS confirming Section 18A status and your PBO number. Keep this letter — donors may ask to see it. From that point, every qualifying donation you receive can be accompanied by a Section 18A certificate, and you must register for IT3(d) submissions.
Hopely is built for organisations at this stage: once you have your PBO number and Section 18A approval, the platform handles the rest — certificates, email delivery, and the annual IT3(d) export.