Socio-Economic Development or Corporate Social Investment (CSI) is one of the most established routes used by companies to ‘give back’ to society while building brand loyalty and earning B-BBEE points. Focus on iThemba is wholly dependent on donor funding and is an accredited non-profit, public benefit (18A) organisation.
Focus on iThemba is B-BBEE compliant and we are able to supply donors with the following B-BBEE points:
- Social-Economic Development: up to 5 points for both Generic companies and for Qualifying Small Enterprises
- Enterprise Development: up to 5 points for both Generic companies and for Qualifying Small Enterprises
Your SED grants will go towards the iThemba scholars; the foster care homes; infrastructure; and administration for the work of Focus on iThemba
Our ED model focuses on home crèches and pre-schools in the disadvantaged Embo Valley communities who are owned by a sole trader. In talking to some of our donors, we found that the application of ED funds is often a hurdle to companies due to it being outside of their core focus. This model allows donors the opportunity to channel these funds wisely.
Information Regarding B-BBEE for Donors to Focus on iThemba
|Category||QSE Qualifying Small Enterprises||Generic Company||Notes|
|Definition||R10m – R50m||Above R50m|
|Elements required||All 5||All 5|
|Points awarded ED||5 – Donors can give up to 1% PAT||5 – Donors can give up to 1% PAT||PAT = Profit after tax – we can help donors achieve ED points|
|Points awarded SED||5 – Donors can give up to 1% PAT||5 – Donors can give up to 1% PAT||PAT = Profit after tax – we can help donors achieve SED points|
We are pleased to advise that Focus on iThemba has been approved as a Public Benefit Organisation. This allows donations received to be tax deductible in the hands of the donors in terms of and subject to the limitations prescribed under Section 18A of the Act.
We further advise that bequests from the estates of deceased persons in favour of Focus on iThemba are exempt from the payment of estate duty in terms of section 4(h) of the Estate Duty Act, 45 of 1955. The stipulation by the donor to Focus on iThemba is that he / she must state that the donation is made: “To provide preventative and educational programmes relating to HIV/AIDS.” This is in line with legislation that seeks to fund projects and organisations such as Focus on iThemba who are involved in AIDS work.
We further advise that a maximum of 10% of a donor’s net taxable income may be given to registered organisations having the tax status of a Public Benefit Organisation. A tax certificate will be issued by Focus on iThemba each year for inclusion in your annual tax return.