Organisations approved to issue Section 18A receipts must report all tax-deductible receipts to SARS through the IT3(d) third-party data submission, biannually — in October, and by the end of May covering the previous tax year. Each qualifying donation is reported with the donor's details, the amount and the receipt number. SARS then matches that data against what donors claim, which means your submission and your receipts must agree exactly.
This is third-party data reporting, of the same kind banks and medical schemes do. The difference is that most NPOs have never done it before.
What is IT3(d) and why does it exist?
IT3 is SARS's third-party data regime. Banks report interest, medical schemes report contributions, and approved Section 18A institutions now report donations. The purpose is straightforward: SARS wants to verify a claimed deduction against data from the organisation that issued the receipt, rather than taking the taxpayer's word for it.
Which changes the character of the Section 18A receipt entirely. It used to be a document that lived between your organisation and your donor. It is now one half of a matched pair — your submission is the other half — and SARS can see when the two do not agree.
When are the submissions due?
Biannually. In broad terms:
| Submission | Covers | Timing |
|---|---|---|
| Interim | The first half of the tax year | October |
| Annual | The full previous tax year | By the end of May |
Confirm the exact dates with SARS for each cycle, because third-party data deadlines are published per period and do move. Diarise both, a month early, in the same way you would a VAT or PAYE deadline — this is now a recurring statutory filing, not a project.
What has to be reported?
Every qualifying donation for which a Section 18A receipt was issued, with:
The donor's details — name, nature of the donor, identity or registration number, and tax reference number
The amount of the donation
The receipt number
Which is precisely why the Section 18A receipt requirements changed from 1 March 2026. The receipt fields exist so this submission is possible. An organisation that has not been capturing tax reference numbers has nothing to submit against those donations. See the new Section 18A receipt rules.
What actually goes wrong?
Five things, in roughly the order organisations discover them.
1. Missing donor tax numbers
The most common problem by a wide margin. Most NPOs hold names, amounts and email addresses. Very few hold tax reference numbers, because until recently nobody needed them.
Collect them at the point of donation. Retrospective collection works poorly — the donation has already happened, the donor has no incentive to respond, and chasing them is an awkward conversation with the people you most want to keep happy.
2. Receipt numbers that are not unique
Duplicated numbers, gaps, or several people issuing receipts from separate templates. A common pattern is one series from the finance system, another from the fundraising team's spreadsheet, and a third handwritten at events.
Consolidate to one controlled series before the next submission. Reconciling two overlapping series afterwards is far harder than it sounds.
3. Receipts that do not tie to the books
The receipt says R50,000. The bank shows R45,000. Or a receipt was issued for a pledge that never arrived. Or a donation was received and receipted twice.
Every Section 18A receipt should reconcile to a recorded receipt in the accounting records. Where they do not agree, one is wrong — and finding out during a submission, with a deadline running, is the worst time.
4. In-kind donations with no defensible valuation
Reported at a value nobody can support. In-kind valuations are the most likely thing to attract attention, and an overstated one damages more than the individual receipt.
5. Receipts issued when they should not have been
For something that is not a qualifying donation — sponsorship with a commercial return, a payment for services, an event ticket where the donor received value. A Section 18A receipt is for a donation, not for a transaction. Reporting non-qualifying amounts creates a discrepancy visible to SARS at both ends.
What does a working process look like?
Six components. None is complicated; the discipline is in doing all of them.
1. One receipt template, carrying every required field, issued from one place.
2. One controlled numbering series. Sequential, no gaps, no duplicates, one owner.
3. Donor data captured at intake. Nature of donor, ID or registration number, tax reference number — as fields on the donation form, not as an afterthought.
4. Monthly reconciliation. Section 18A receipts issued against donation income recorded, every month. Twelve small reconciliations beat one large one, and the difference is not marginal — a discrepancy found in March is a phone call, the same discrepancy found in May is a problem.
5. An in-kind file. Description, valuation basis and supporting document for every non-cash donation.
6. A submission calendar. October and May, diarised a month early, with a named owner.
See why bookkeeping actually matters.
How does this fit with everything else an NPO files?
IT3(d) is one of several obligations, and they sit with different bodies on different cycles.
| To whom | What | When |
|---|---|---|
| SARS | IT3(d) donor reporting | October and end of May |
| SARS | Income tax return for the exempt entity | Annually |
| SARS | EMP201, EMP501, VAT201 if applicable | Monthly / bi-annually |
| Department of Social Development | NPO annual report — narrative and financial | Annually |
| CIPC | Annual return and beneficial ownership, if an NPC | Anniversary month |
| Funders | Grant reporting, on each funder's own cycle | Varies |
The DSD annual report is the one with teeth attached to it, because failure to file is what drives deregistration. See why NPOs get deregistered and what is a non-profit company (NPC).
Records must be kept for at least five years.
Frequently asked questions
What is IT3(d)? SARS's third-party data submission for approved Section 18A institutions, reporting every tax-deductible donation receipted, with the donor's details, the amount and the receipt number.
How often must IT3(d) be submitted? Biannually — an interim submission in October and an annual submission by the end of May covering the previous tax year. Confirm the exact dates with SARS for each cycle.
What information does each donation record need? The donor's name, nature, identity or registration number and tax reference number, the amount of the donation, and the receipt number.
What if I do not have a donor's tax number? You cannot report that donation completely. Collect tax reference numbers at the point of donation, because retrospective collection has a poor success rate and is an awkward request.
Do I have to submit IT3(d) if I am a registered NPO? Only if you are approved by SARS to issue Section 18A receipts. NPO registration or NPC incorporation does not by itself create the obligation — Section 18A approval does.
What happens if my receipts do not reconcile to my accounting records? You cannot submit accurately. Reconcile Section 18A receipts to recorded donation income monthly, so discrepancies surface while they are still small.
Can I issue a Section 18A receipt for sponsorship? Not where the sponsor receives a commercial return. A Section 18A receipt is for a donation. Reporting a non-qualifying amount creates a discrepancy SARS can see at both ends.
How long must the records be kept? At least five years.
Reconcile monthly, not in May
The organisations that will struggle with IT3(d) are not the ones with poor intentions. They are the ones with a fundraising spreadsheet, a finance system, and a receipt book that have never been reconciled to each other — which describes a great many good NPOs.
Smartbook does accounting and compliance for South African NPOs and NPCs: donation income reconciled to Section 18A receipts every month, controlled receipt numbering, donor data captured properly at intake, and the IT3(d) submissions prepared from records that already agree.
See monthly accounting plans →
Last reviewed: 13 August 2026. Written by the Smartbook team — SAIPA and SAICA accredited, SARS registered tax practitioners. Third-party data submission dates are published per period and can change — confirm the current deadlines with SARS. General guidance, not advice on your circumstances.
Primary sources: SARS — Third Party Data · SARS — Tax Exempt Institutions · Income Tax Act 58 of 1962, Section 18A · Department of Social Development — NPO Directorate