Tax & BBBEE
Firstly, South African tax donations to charities are generally exempt from donations tax, donations are only tax-deductible if they meet the strict criteria of section 18A of the Income Tax Act, which inter alia limits the type of charity that can be supported. Nika Capital is Section 18A approved, and we follow the guidelines of the SARS Registered Public Benefit Organizations (PBO).
In short, this allows for the donating entity or individual to deduct the donation to Nika from its own annual taxable income, when certain conditions are met. Essentially meaning that you may allow deductions from your personal and/or corporate tax assessment, when a donation is made to Nika.
Secondly, a further benefit is that Nika Capital also has many years of experience in BBBEE-structuring. Nika therefore offers solutions and benefits for participating/ donating companies on element levels of: Socio Economic Development (SED), Enterprise Development (ED), Skills Development and even the Ownership element. Nika Capital is a qualified BBOS (Broad-Based Black Ownership Scheme, with a majority black female and designated group ownership) with 99% of our beneficiaries being Black people. Should you therefore be in need of points on your BBBEE Scorecard, its worthwhile to have a discussion with us.
Thirdly, there are the benefits relating to the Donor Advised Fund and is explained herein.
SO if you need any assistance in structuring your charitable and generous donation from a South African perspective, please contact John Jones (firstname.lastname@example.org). If you are making an international donation, we recommend TrustBridge’s (https://www.trustbridgeglobal.com/) services or Nika Capital holds an account with the National Christian Foundation (https://www.ncfgiving.com/) in the USA.
c. + 27 82 772 3755
Gauteng Office: Nika House, Glenfields Office Park, c/o Oberon Ave & Glenwood Rd, Faerie Glen, Pretoria
Stellenbosch Office: 3rd Floor, Mills Square Building, 12 Plein Street, Stellenbosch