A Section 18A-approved entity is an organisation which carries out specific public benefits activities in terms of Part II of the Ninth Schedule to the Income Tax Act and has been approved by SARS to issue Section 18A tax-deductible receipts/certificates for qualifying donations.
An organisation can be tax-exempt or registered as an NPO without being approved for Section 18A.
In simple terms
NPO registration = the organisation is registered as a non-profit organisation with the Department of Social Development
PBO approval = the organisation is registered as a public benefit organisation (PBO) with SARS.
Section 18A approval = the organisation is registered as a public benefit organisation (PBO) with SARS and may also issue tax-deductible receipts where the requirements are met. Note, other organisations besides PBO’s may also obtain Section 18A approval from SARS.
For the full guide, read: Understanding IT3(d).
Related question: Who can issue Section 18A receipts?
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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