Tax on retirement gift from a Church to a Pastor

Our church wants to donate a parting gift to a retiring Pastor of between 500000 and 750000. Will the church have to pay donations tax or will the retiring Pastor have to pay tax on this amount?

Is the church a registered Public Benefit Organisation?

Yes, it is. We have a PBO Registration.

PBO's are exempt from donations tax therefore no donations tax will be payable by the church and gifts are tax-free in the hands of the donor. If he files a tax return, he should declare this amount as "not considered taxable".