The regulatory and fiscal environment in which South African charitable organisations operate have changed significantly over the past decade. This paper examines recent income tax developments which affect public benefit organisations (PBOs). A literature review was performed, with reference to statutory law, published articles and textbooks. The regulatory framework governing non-profit organisations (NPOs) is first considered. Thereafter, the income tax requirements relating to PBOs are

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... ssed. Lastly, the paper reviews the rollover treatment for excess deductible donations, the deductible donations of appreciated immovable property and the interpretation of the expression 'substantially the whole'. The current and future income tax treatment of these aspects are examined. It was found that the section 18A deduction was enhanced by allowing the excess amount (above the allowable threshold) to be carried over to future years of assessment. The incentive for deductible donations on 99-year endorsements for land conservation was improved. Greater clarity is now provided with regard to the requirement of 'substantially the whole'. It is submitted that these changes will assist in supporting charities in the vital role they play towards greater fiscal and social reform.