Can a PBO issue Section 18A certificates for donated services like legal advice, audit fees, or advertising? The short answer: no. SARS only allows tax-deductible donations for cash or property in kind—services don’t qualify because they aren’t tangible assets. But why can a board member receive a certificate for waiving a speaking fee? The key lies in how the transaction is structured. This quick guide clears up the confusion and helps PBOs stay compliant while managing donor expectations.

Wildlife conservation efforts often rely on specialized equipment, including aircraft, to protect endangered species and monitor vast landscapes. But when a Public Benefit Organization (PBO) owns an aircraft and rents it out for conservation purposes, how does this impact tax and VAT obligations?

A recent case involving a PBO in South Africa raised important tax questions:

• Is income from hiring out the aircraft exempt from tax?

• Should VAT be declared on an insurance payout after the aircraft was written off?

This article breaks down the tax treatment of PBO aircraft rental and insurance claims, ensuring compliance while supporting conservation efforts.