1. PBO Tax Workshop Hoosen Agjee 26 th January 2010 www.TaxBenefits4ngos.co.za Business solutions for commerce & NGOs

3. South African individuals GIFT R 930 million a month to Charity Prof. Adam Habib CCS (Sept 2006) R 12 billion a year !!

5. Breaking free to financial freedom NPO A turning point in your organisation

7. Family Charity Trust Trust NGO

9. Public NPO

14. The Choice Tax Benefits are the SAME for all

17. Questions ? Empowering you !

19. Why an NPO ??? Broaden Donor Base ! U Save Money ! NPO

21. 1970 2010 Organisations Donor NPO

23. Questions ? Empowering you !

24. & NPO’S

25. Voluntary registration for Tax Exemption “ Only if the NPO is officially tax exempt can it enjoy the benefits that SARS offers “

26. Formal Tax-Exempt Status TAX BENEFITS Gateway

34. Questions ? Empowering you !

36. Income Tax

39. Tax-free portion of PBOs Business Income Greater of R 150 000 ; or 5 % of PBO’s Gross Income

40. 28 % Income Tax R500 000 Rental Income Rental income R 500 000 R 500 000 R 98 000 R 402 000 R 98 000 Rental Income R 402 000 PBO

41. Charity Trust Taxed on Business Income Rental / Business income R 500 000 Exempt portion 150 000 ---------------- Rent taxable 350 000 28 % Income Tax R 98 000

42. PBO Relying on Rental Income Rental income R 500 000 Exempt portion 150 000 Amount taxable 350 000 28 % Income Tax (on R 350k) 98 000 AVAILABLE TO USE R 402 000

45. Non-PBO 40% Tax Rental Income R 500 000 R 200 000 R 300 000 R 200 000 Rental Income R 300 000 NGO

48. Questions ? Empowering you !

49. Tax-Deductible Donations

57. 18A Tax NOT claimed is LOST !! Are our Donors missing out on R 100’s m govt help every year ? Donor

58. Questions ? Empowering you !

60. Giving Charity Using a Family Trust Donation is Tax-deductible in a Trust R 150 000 is taxed as business income in PBO ! TRUST INCOME 1,000,000 Income 1 000,000 To PBO 150,000 Tax Save 60,000

61. Donation to Non-Exempt Body Donor takes 20 % R 600 000 - R 100 000 R 500 000 = Donor NOT EXEMPT Org.

62. Donation to Tax-Exempt Body Donor NO Donations Tax R 600 000 - R nil R 600 000 = PBO

64. Donor DOES NOT pay CGT on gains given to PBO Donor Saves Tax Capital Gains Tax

69. Questions ? Empowering you !

73. gives back VAT to PBOs Are we missing out on millions on VAT refunds yearly ?

75. Questions ? Empowering you !

78. Road to financial freedom has OPENED NPO A turning point in your organisation

80. Visit our website: www. TaxBenefits4ngos .co.za Trust Deeds/ Constitutions & Section 21 Co’s. for NGOs Family Trusts for individuals Estate planning and Wills Accounting Services Administration of Estates Business solutions for Commerce & NGOs Produced by: Cave Man inc (031) 2073323