KFC customers can claim back their R2 for Hope donations from Sars

KFC customers who donate to the R2 for Hope campaign can request a Section 18A certificate. Picture: Nataliya Vaitkevich/Pexels

KFC customers who donate to the R2 for Hope campaign can request a Section 18A certificate. Picture: Nataliya Vaitkevich/Pexels

Published Jul 17, 2023

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A KFC customer has ignited a humorous, but valid, debate on Twitter by asking the fast food chain how she can prove her R2 to Add Hope donations in order to get a tax refund from Sars.

And the response was simple: Email your receipt and ask for a Section 18A certificate.

Picture: Twitter
Picture: Twitter

Tweep Lindelwe was not, however, impressed with the reply.

“One slip will be enough? We've been donating hey...We must do paper work each time we buy meat?

“If your system is not meant to benefit you only, why don’t you issue a KFC card (or a UID), that customers can use to generate ALL the R2s we have donated?”

The fact that customers would need to ask for a Section 18A certificate was regarded as funny by many Twitter users who weighed in on the debate. Others said the ‘admin’ and ‘paperwork’ was too much, so they would no longer be donating to this cause.

Of course, this instigated responses from some people asking why the donations were not made with purely good intentions instead of for the purposes of claiming refunds.

“Didn't you guys do that out of the goodness of your hearts?” asked Mahlodi Hlongwane.

Another, Ntate Ratau, took a different stance: “Say you buy KFC once every week, and you always donate the R2, which comes to R104 per year... Is all this drama really necessary?”

According to Lindelwa, yes, it is.

“I get it Ntate, you seem to be okay with manipulative systems as long as its not more than R104, even if wona make R104k out of you.”

While this issue may be seen as trivial by many people, another Tweep, Tom Savage, used the debate as a basis for his own, bigger, question below:

Picture: Twitter

But back to the KFC R2 for Add Hope issue.

LiloM asked: “Are you registered as a Public Benefit Organisation that is allowed to issue s18A certificates? Are you a principal/collecting agent of one? if the answer to the above is in the affirmative.. could you please furnish us with the PBO number !”

This is a valid question, the answer to which is, so far, unknown.

According to tax experts at PwC, a taxpayer may, subject to certain limitations, claim a deduction in terms of section 18A in respect of any bona fide donation of money or property in kind to certain organisations (including a public benefit organisation) during a year of assessment. This is provided that the donor received a valid receipt from the recipient of the donation.

The receipt must contain the following information:

  • The name of the organisation
  • The reference number of the organisation (as issued by Sars)
  • The address of the donee
  • The date of receipt of the donation
  • The name and address of the donor
  • The amount of the donation or the nature thereof if not made in cash
  • Certification that the receipt is issued for the purposes of section 18A, and the donation has been/will be used exclusively for the section 18A objects of the organisation.

Additional information required from March 2023 includes:

  • Donor nature of person (natural person, company, trust, etc)
  • Donor identification type and country of issue (in the case of a natural person)
  • Identification or registration number of the donor
  • Tax reference number of the donor (if available)
  • Contact number of the donor
  • Email address of the donor
  • A unique receipt number
  • Trading name of the donor (if different from the registered name).

PwC adds that the claim for a deduction in terms of section 18A is only permitted if the donation was made to an organisation, institution, agency or department approved by Sars. The fact that the donee is a non-profit organisation conducting a qualifying project does not necessarily mean it is an approved section 18A organisation.

Donors should confirm the recipient’s section 18A status by requesting a copy of the organisation’s Sars approval letter. Alternatively, they can search the list of 18A approved organisations on the Sars website.

According to KFC, the Add Hope project brings together big business, ordinary citizens and civil society to address one childhood hunger.

"All proceeds raised through Add Hope go directly to non-profit organisations (NPOs) which use this money to provide in need children with the vital nutrition they need to break this cycle.“