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Small and medium business can now score more than a third of their required BEE points by donating to a compliant charity.
They can earn 25 points out of a required 65 points by making a contribution to a worthy cause that benefits all South Africans.
Over 840 Sea Rescue volunteers work around the clock to prevent drownings and save lives countrywide whenever disaster strikes, at sea, in rivers, dams or floods. The call-out stats show that at least 75% of people rescued are previously disadvantaged individuals, thus making this charity compliant with the new legislation.
As a business owner, you will earn points under the ‘socio-economic development’ category on your BEE scorecard when you donate to Sea Rescue. Sea Rescue will issue you with an auditors’ letter that verifies that they are compliant, as well as a receipt for you to submit to get your points.
If you donate 1% of your net profit after tax you will score 25 points, as long as the charity is compliant and you submit your supporting documentation. This means if your profit is R1 million after tax, you only have to donate R10 000 and you will score your full 25 points.
There are professional verification agencies that will certify your BEE status. A list can be found on www.abva.co.za.
The scorecard has 7 categories – if your turnover is between R5 and R35 million, you choose 4, each of which counts 25 points so that your maximum score could be 100 points. (in which case you will be 135% compliant).
The categories are as follows: socio-economic development, enterprise development, preferential procurement, skills development, employment equity, management control and ownership.
Although companies with a turnover of less than R5million now automatically qualify as BEE compliant, many choose to complete a scorecard as a gesture of goodwill or to gain competitive advantage. A different scorecard applies to companies with a turnover of more than R35 million.
The new broadbased BEE legislation incentivises all businesses, including small and medium enterprise to become part of the transformation process without undue pressure on their productivity.
On the other hand, nobody should be excluded from the benefits of this empowerment drive – not even the poor, the youth or the rural communities.
Your donation to Sea Rescue (or their Waterwise initiative) answers exactly on the issues that the new legislation aims to address. And if you consider that 65 points make you fully BEE compliant, then your contribution will also earn you more than 1/3rd of your required points!
For more information, please call Anton Liebenberg on 021 434 4011 or e-mail him on nsri-anton@iafrica.com.
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