WSI is a non-profit organization reliant on community participation and donor funding to bring effective security and safety services to the region. The positive acquisition and support of businesses, tourism institutions, landowners and community members in the WSI strategy and plan clearly indicates the need for improved security measures within the increasingly vulnerable farming communities of South Africa. WSI serves 300 000ha in the Waterberg area. In one-year WSI achieved more than any other similar projects in the country.
Non-profit organisations such as WSI play a significant role in society as we take a shared responsibility with Government for the social, security and development needs of the country. Preferential tax treatment is designed to assist non-profit organisations by augmenting their financial resources. WSI is also registered as a Public Benefit Organization (PBO) -Section 18A approved.
How much can you claim as a tax deduction?
- Taxpayers – natural persons, trusts, companies, or close corporations – can deduct from their taxable income, the amounts they donated to WSI, up to the value of 10 percent of their taxable income.
- For natural persons, the term taxable income refers to the taxpayer’s taxable income, whether derived from trade or from a non-trading source, and after allowing all permitted deductions, but before the donation deduction. Taxable income excludes any retirement lump sum benefit, retirement lump sum withdrawal benefit and severance benefit. However, it includes taxable capital gains.
- The donation must be paid or transferred during the year of assessment in order to qualify for a tax deduction in such tax year.
Giving is good for you!
Donating to a good cause makes you feel good.
This intuitive knowledge is now backed up by research from economics professor William Harbaugh of the University of Oregon in the United States and his colleagues Ulrich Mayr and Dan Burghart.
The researchers found that giving to good causes activates regions of the brain associated with pleasure. The brain’s neural responses to donating are very similar to those elicited by activities such as eating good food and seeing pictures of loved ones.
But Dr Helgo Schomer, the director of the Behavioral Health Consultancy and a senior academic in the department of psychology at the University of Cape Town, adds another dimension: “We are social beings; we are not insular. It is fantastic to give from the point of view that we are contributing to the social fabric.
“Giving does the soul good. It is a way in which we realise how fortunate we are to be part of a community, and to be one of the earners – one of the lucky ones. It is a way of saying thank you for being so fortunate.”
He goes on to say that as a psychologist he spends time in therapy with his clients concentrating on what is present, instead of what is lacking. “Giving is a clear orientation towards what is, instead of what isn’t, and that builds character. By giving, I can demonstrate some of my success. And what nicer feeling in life than feeling successful?” he says.
“Social responsibility is an ethical theory that an entity, be it an organisation or individual, has an obligation to act to benefit society at large.”
When your moral compass and sense of social responsibility lead you to acts of benevolence, you could, in addition to the sense of wellbeing that comes from helping others, also have the added benefit that you can claim for a deduction against your tax – provided you make your donation to an organisation like WSI that meets the taxman’s very specific requirements. Generally, donations made to WSI, as an approved public benefit organisation will qualify as a tax deduction.
If you are looking for tax relief, this is a win-win situation. Your support will enable us to continue with our services rendered to the WSI Landowners and Community.