Shaping a legacy
beyond wealth

Legacy is no longer defined solely by the assets we pass on, but also by the values we live by and the difference we make. Increasingly, our clients are directing their wealth towards causes that reflect their deepest beliefs and personal experiences. Whether it’s supporting education, healthcare, environmental sustainability or social development, the intention is the same: to make a meaningful and enduring contribution.

With this noble intent, however, comes a legitimate concern: will my donation truly make an impact? Mistrust in charitable organisations – particularly around governance and the potential misuse of funds – can deter even the most well-meaning donors. This is why working through reputable, transparent organisations with strong governance structures is essential. It ensures that your generosity achieves its intended purpose, now and for generations to come.

Start with your will

A will is one of the most powerful tools in wealth transfer – but it’s also a profound statement of values. By including charitable bequests in your will, you can support causes that matter to you, while leaving a legacy of giving.

A well-structured bequest can provide long-term funding to an existing non-profit or even help establish a new initiative. You can also nominate a trusted family member to work alongside an approved organisation, helping to ensure your philanthropic intentions are carried out with integrity over time.

There are many reasons why some individuals postpone giving until after death:

• Concerns about rising healthcare costs or the unpredictability of future needs
• A preference to preserve capital, particularly during retirement
• A desire to maintain full control over wealth or business interests
• Family cultures in which charitable giving simply isn’t part of the legacy conversation.

In addition to its emotional and social impact, charitable giving through your will may also offer a financial advantage. Correctly structured bequests to approved public benefit organisations (PBOs) are exempt from estate duty and capital gains tax, which can significantly improve the overall tax efficiency of your estate plan (see our article on the tax impact of charitable giving).

Philanthropy in your lifetime

Legacy isn’t just something you leave behind – it’s something you can actively shape while you’re still here to see the impact. Establishing a PBO is a strategic way to formalise your giving and remain involved in the causes you support. To qualify, the organisation must meet the requirements of Section 30 of the Income Tax Act and be approved by the South African Revenue Service.

The PBO can apply to the Commissioner for additional approval (Section 18A status) in order to make it eligible to issue Section 18A receipts, allowing donors (including yourself) to claim tax deductions on qualifying donations. This creates a structured, transparent and tax-efficient vehicle for charitable giving – during your lifetime and beyond.

In South Africa, there are different ways to register a PBO. These include establishing a trust (registered with the Master of the High Court) or a non-profit company (registered with the Companies and Intellectual Property Commission). However, tax efficiency only applies if the organisation is officially recognised as a PBO and complies with the relevant provisions of the Income Tax Act. Without these approvals, donations may not be tax-deductible.

Deeper rewards

While the tax benefits of philanthropy are certainly appealing, the deeper rewards are often far more meaningful. Engaging in philanthropy can bring personal fulfilment, cultivate empathy and foster stronger relationships through shared purpose. It’s also an opportunity to involve the next generation, nurturing a culture of giving within your family and reinforcing shared values.

Whether you give through a will or during your lifetime, the first step is deciding where and how to make a difference. Ask yourself:

• Do I want to conserve natural resources or support environmental change?
• Do I want to drive job creation through my business ventures?
• Are there education or healthcare causes that speak to my heart?
• How involved do I want to be – donating only, or participating actively in the cause?

You're not alone

Starting your philanthropic journey can feel overwhelming – but you don’t need to have all the answers from day one. With the right guidance, you can align your resources, time and values to make a lasting impact.

At Sanlam Private Wealth, we help clients design thoughtful, sustainable giving strategies – whether through structured bequests, setting up a PBO, or identifying causes that align with their long-term vision.

For more information on how we can help you shape your legacy through philanthropy, please contact Fay Nkosi at fayn@privatewealth.sanlam.co.za.