BROAD-BASED BLACK ECONOMIC EMPOWERMENT (“B-BBEE”) STATUS
Sukuma Foundation has a Level 1 B-BBEE status as a minimum of 80% of our beneficiaries are B-BBEE compliant according to the legislation code.
Bearing that in mind, companies that donate towards our Foundation could obtain Socio-Economic Development (“SED”) points on their B-BBEE scorecard for the value of the contributions made to our beneficiaries. This is because the programmes we facilitate as Sukuma Foundation are dedicated to promote sustainable access of its beneficiaries to the economy as prescribed under the B-BBEE legislation.
Additionally, companies who donate towards Sukuma could also obtain Skills Development Contribution (“SDC”) points on their B-BBEE scorecard for the value of the contribution made towards our beneficiaries. This due to the fact that prescribed B-BBEE SDC compliance for companies includes external training expenditure for unemployed B-BBEE compliant people. A way to make this a possibility is through our dedicated skills development initiative, hArt EduCare, whose primary objective is the educational development of adult B-BBEE compliant beneficiaries through various training and educational channels.
We are also currently in the process of registering a holding Trust, which would own the NPC/ NPO and all of its initiatives. The Trust would serve as an entity that would be able to obtain shareholding ownership in companies in return for B-BBEE ownership compliance.
That being said, there are various ways that companies could contribute, and in turn, benefit from our Level 1 B-BBEE status. SED and SDC contributions can take the form of grants, payment of direct costs, guarantees or security for loans, preferential terms or prices for supply of goods, services or training and mentoring.
Besides our Level 1 B-BBEE status, we are also in the process of completing our tax-exempt public benefit organisation (“PBO”) application, in the hopes that we will soon be able to issue section 18A certificates, which allow our donors to claim tax exemption on the donation made to our Organisation. This process was put on hold in late 2020, as our government is currently migrating their workforce to the areas in more urgent need during this pandemic. However, we stay confident that this will be finalized soon, and we will be in a position to offer this benefit to our donors.