Section 18A receipts are important for many South African NPOs because they help eligible donors claim a tax deduction for qualifying donations. But issuing these receipts is not something every organisation can do automatically.
Before an organisation issues Section 18A receipts, it needs to understand whether it has the correct SARS approval, what information must appear on the receipt and why accurate donor records matter.
This article is for general information only. It is not tax or legal advice. NPOs should always check the latest SARS requirements or speak to a qualified tax practitioner when needed, because naturally tax admin has chosen to be a maze with paperwork.
Why Section 18A receipts matter
For donors, a Section 18A receipt can support a tax deduction claim for a qualifying donation.
For NPOs, Section 18A receipts can also help build trust with donors who want proper documentation after giving. This is especially important for companies, trusts and individuals who need accurate records for tax and reporting purposes.
But Section 18A receipts must be handled carefully. If an organisation issues receipts without the correct approval or without the required information, it can create problems for both the organisation and the donor.
Not every NPO can issue Section 18A receipts
Being an NPO does not automatically mean an organisation may issue Section 18A receipts.
SARS states that a Section 18A receipt may only be issued by a Section 18A-approved organisation from the date SARS confirms the approval and issues the Section 18A reference number that must appear on the receipt. South African Revenue Service
This means an organisation should not assume that NPO registration, public benefit work or charitable activity is enough on its own.
Before issuing receipts, confirm that your organisation has formal Section 18A approval and that the approval applies to the relevant activities and donations.
What a Section 18A receipt should include
A Section 18A receipt needs to contain specific information. These details help identify the organisation, the donor and the donation.
Your organisation should keep accurate records for information such as:
- the organisation’s Section 18A reference number
- the unique receipt number
- the date the donation was received
- the name and address of the organisation issuing the receipt
- the donor’s name and details
- the amount donated, if the donation was made in cash
- the nature and value of the donation, if the donation was not made in cash
- the required declaration that the donation will be used for approved public benefit activities
SARS guidance links Section 18A receipts to organisation information, donor information and donation information, and SARS has also highlighted additional mandatory information requirements for Section 18A and IT3(d) reporting. South African Revenue Service
This is why donor details and donation records need to be captured properly from the start. A receipt is only as reliable as the information behind it.
Why donor details matter
Many receipt problems start with incomplete donor information.
If donor details are missing, outdated or captured inconsistently, it becomes harder to issue clear receipts and keep records ready for reporting.
Your organisation should collect and maintain donor details such as:
- donor name
- donor address
- email address
- contact number
- tax reference number, where required
- donor type, such as individual, company or trust
- donation date
- donation amount
- receipt number
- donation type
The goal is not to collect information for the sake of admin. The goal is to make sure your receipt records are clear, complete and easier to manage when donors or SARS need accurate information.
Cash donations and non-cash donations
Some donations are made in cash or by electronic payment. Others may be donations of goods, assets or property in kind.
These should not be treated casually.
Cash donations should clearly show the donation amount. Non-cash donations may require details about the nature and value of what was donated.
If your organisation receives non-cash donations, be careful about how they are recorded and receipted. The value, description and supporting records should be handled properly before a Section 18A receipt is issued.
The link between Section 18A receipts and IT3(d)
Section 18A receipts are no longer only about giving a donor a document after they donate.
Approved Section 18A entities are required to submit IT3(d) third-party data to SARS, and SARS says this data contains information from tax-deductible receipts issued to donor taxpayers. South African Revenue Service
That means receipt information and donor information should be captured consistently throughout the year, not rushed together close to submission time.
If an organisation waits until the deadline period to clean up donor records, it may discover missing information, duplicate records or receipt details that are difficult to verify.
Common Section 18A receipt mistakes
Many issues can be avoided with better admin habits.
Common mistakes include:
- issuing receipts before confirming Section 18A approval
- leaving out required donor information
- using unclear or duplicate receipt numbers
- recording donation dates incorrectly
- treating all donations as qualifying donations without checking
- not keeping enough supporting records
- waiting too long before reconciling donations and receipts
- confusing general donation confirmations with Section 18A receipts
These mistakes may seem small at first, but they can create bigger problems when donors need documentation or when the organisation prepares its reporting.
Good receipt admin starts before the receipt is issued
Section 18A receipt admin should not begin at the moment the receipt is generated.
A better process starts earlier:
- confirm the organisation’s approval status
- capture donor details clearly
- record donation information consistently
- use unique receipt numbers
- keep supporting records
- review information regularly
- prepare for IT3(d) reporting throughout the year
This makes the receipt process less stressful and reduces the chance of avoidable errors.
Final thought
Section 18A receipts can help build donor confidence, but they also come with responsibility.
For South African NPOs and approved public benefit organisations, the safest approach is to keep donor records, donation details and receipt information organised from the beginning. When the information is clear, the receipt process becomes easier to manage and the organisation is better prepared for donor queries, internal reporting and SARS requirements.
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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