This article explains Section 18A of the South African Income Tax Act, how Altivo generates Section 18A reference numbers automatically, what the prerequisites are, and what the current limitations are for PDF receipt generation.
Sponsorships > Section 18A
Section 18A of the South African Income Tax Act allows individuals and companies to deduct donations to approved Public Benefit Organisations (PBOs) from their taxable income. If a sponsor donates cash to a school with PBO status, they can claim a tax deduction.
The school must have a PBO number set in School Profile
The sponsorship must include at least one Cash contribution (Goods and Services do not qualify under SA tax law)
When both conditions are met, Altivo automatically generates a Section 18A reference number when the sponsorship is saved.
Format: 18A-{PBO number}-{tax year}-{sequence}
Example: 18A-930044821-2026-0001
18A - fixed prefix
930044821 - the school's PBO number
2026 - the South African tax year (1 March 2025 to 28 Feb 2026 = tax year 2026)
0001 - sequential number per school per tax year, resetting each year
The SA tax year runs 1 March to 28/29 February. The year label uses the ending year: March 2025 to February 2026 = tax year 2026.
| Feature | Status |
|---|---|
| Generate reference numbers automatically | Available now |
| Display reference on sponsorship records | Available now |
| Generate PDF receipt document | Planned for future release |
| Submit receipts to SARS | Not in scope |
References are immutable - once generated, they cannot be changed or reused
Goods and services never qualify, even if part of the same sponsorship as a cash contribution
Adding a PBO number does not retroactively generate references for existing sponsorships
The school is responsible for compliance with SARS requirements
Go to School Profile in the sidebar
Enter your PBO number in the PBO Number field
Click Save
Check both conditions: (1) your school has a PBO number set in School Profile, and (2) the sponsorship includes at least one contribution with type set to Cash. Both must be true.
Verify the PBO number in School Profile has no spaces, dots, or extra characters. It should be numbers only. Also confirm the contribution type is set to Cash (not Goods or Services).
Under South African tax law, only cash donations to approved PBOs qualify for Section 18A receipts. Goods and services donations do not qualify, regardless of their value.
No. Adding a PBO number does not retroactively generate references for existing sponsorships. Only sponsorships created or updated after the PBO number is set will receive a reference.
Last updated: March 2026 | Version 1.0