This document can be used for a business or person preparing to make a donation to a non-profit organization organized pursuant to Section 501 (c) (3) of the Internal Income Code. In this document, the form filler may enter relevant identification details, for example. B whether the parties are individuals or companies, their contact information and, of course, all the details of the donation, including its monetary value. Donation agreements in the United States are governed by the internal income code, which is overseen by the Internal Revenue Service (IRS). In particular, section 501 (c) (3) of the internal income code refers to non-profit organizations. Whether you think you`re helping your son financially to buy his first property, or donating money to a worthy cause, there are some things to keep in mind. A gift is defined in Income Tax Act 58 of 1962 as “any gratuitous transfer of property, including the waiver or gratuity of a right.” The donor must therefore receive nothing in return for the company, as it would be an exchange agreement. There are two types of donation. B ations, for example donatio inter vivos (donation between two people who are alive) and donatio mortis causa (a donation in which the donor receives the donation only after the death of the donor). The preconditions for an inter vivo and mortis-causa donation are: 1. The donor must make a donation offer that must be accepted by the donor; 2.
The donor must have the legal capacity to make the donation and the donor must have the legal capacity to accept the donation; 3. Anything a person can do (in commercio) can be given; 4. A donation must be lawful and feasible; and five. A donation must be identified or identifiable. Donations can also be withdrawn. In the event of an inter vivo donation, the donor can withdraw the donation at any time before the donor receives the donation. After the donor accepts the donation, a valid contract has been entered into and the donor can withdraw the donation only in case of gross ingratitude from the donor, for example. B if the donor threatens the donor`s life. A mortis causa donation may be cancelled at any time before the donor`s death, as the donation will not be ratified until after the donor`s death.
Finally, and probably most important for some people, the issue of tax on donations is to pay to the recipient of income. Currently, the tax on donations is calculated at 20% of the fair value of the given property. Under section 59 of the Income Tax Act, the donor is responsible for paying the donation tax within three months of the donation. If the donor does not pay the tax on time, the donor and the recipient are jointly responsible for its payment. An individual can make a donation of R100,000 per year, tax-free. There are also some exceptions to Section 56 of the Income Tax Act that should be respected. They include: 1) a donation to the donor`s spouse, within the meaning of a marriage or follow-up contract duly registered; 2) a gift between spouses who are still married; 3. donation in the form of donatio mortis causa (this donation is made according to the donor`s will and #39;s and is therefore not subject to the donation tax); 4.
a donation cancelled within six months of initiation; and five. donations to some non-profit organizations. If spouses are married in a community of ownership, they should pay attention to Section 57A of the Income Tax Act. If a property belonging to the common estate of the two spouses is given by one of the spouses, that gift is considered equal by each spouse.