An NPO is a non-profit organisation registered with the Department of Social Development (which provides it with an NPO status).

A PBO is a non-profit organisation registered with SARS as a public benefit organisation (PBO)

They are not the same thing.

An organisation may be registered as an NPO, but that does not automatically mean it has PBO status or Section 18A approval with SARS.

In simple terms

NPO = non-profit registration status with the Department of Social Development

PBO = SARS public benefit organisation status

Section 18A approval = permission to issue tax-deductible receipts (approval obtained from SARS)

For the full guide, read: Understanding IT3(d).

Related question: What is a Section 18A-approved entity?

Official guidance and further reading

SARS: Section 18A receipts and IT3(d) reporting — tax and donation-reporting guidance.

DSD: Obligations of registered NPOs — NPO recordkeeping, financial reporting and registration obligations.

Written by: Ridhwaan Khan, CA(SA) · Last updated: 12 October 2026

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