OWN CORRESPONDENT, Cape Town | Tuesday 1.30pm.
NON-governmental organisations have warned that foreign funding is shrinking and that many of them face closure unless government legislates for increased tax exemption and deductibility for local donors.
Parliament responded on Monday by promising to speed up the process of deciding whether NGOs should get more tax breaks. Alison Tilley, Black Sash advocacy co-ordinator, said the government lacks political will on the issue because NGOs are frequently critical of government.
The National NGO coalition, representing 4000 NGOs, argues that studies overseas show the contributions gained by the welfare sector far outweigh the tax losses, where exemptions exist, and that government will not be able to “fill the gaps” should NGOs collapse in the absence of tax-break-impelled funding.
The coalition proposes that the tax deductible contribution be increased from 5% for corporates and 2% for individuals to a biblical 10% in both cases. The coalition has now been lobbying for four years on the issue.