Oliver’s House has a level 2 Black Economic Empowerment (BEE) certificate from Beescore. Beescore is a Sanas accredited verification agent. In terms of the B-BBEE definitions our level 2 rating makes Oliver’s House a Superior Contributor to BEE. Your company can earn extra points by contributing to our Enterprise Development (ED) and/or Socio-Economic Development SED programs.
- B-BBEE Certificate – 2017/2018
- Auditor’s Verification Letter
- Independent Verification of Beneficiaries
Socio-economic Development (SED)
For a company to claim the full value of their contributions to Socio-Economic Development (SED) spend, the beneficiaries of the benefiting organisation must be at least 75% black. The beneficiary base of Oliver’s House is predominantly black since two of our main projects are focused in black communities, namely Nomthandazo Children’s Care Centre and Zenzele Feeding Program. Both projects are based in Mina Nawe and the Zenzele informal settlement in Daveyton. The demographic make up of each of our projects as defind by the B-BBEE codes are as follows:
- Nomthandazo Children’s Care Centre – 100% black
- Zenzele Community Development – 100% black;
- Educational Learning Centre – 95% black;
- Computer Training Centre – 95% black.
Our ED program was initiated in 2011. In selecting our beneficiary we looked for a suitable candidate from within the communities we service – Mina Nawe and the Zenzele informal settlement. Once we nominated our beneficiary we helped him set up his company – Hlengumusa Developments cc. Hlengumusa Developments cc is 100% black owned and all the staff are black. Hlengumusa Developments cc employs eight full time staff: seven artisans and a secretary.
Hlengumusa Developments Operations
The core operation of Hlengumusa is the making of special inter-locking bricks. Oliver’s House purchased a special hydraulic brick making machine for Hlengumusa. The brick making machine can produce up to 1500 bricks per day and the entire operation is run from Oliver’s Village. Oliver’s House purchases the bricks from Hlengumusa Developments thereby providing the company with an income. The bricks purchased by Oliver’s House will then be used in the construction of the various facilities at Oliver’s Village.
Although many companies want to create their own Enterprise Development (ED) programs financial constraints prevent them from doing so. However, these companies can still participate in ED by contributing to third party initiatives such as ours. Contributions to our Ed black economic empowerment program can be monetary or non-monetary (labour, materials, consulting etc) and the full value of these contributions can be added to the companies’ ED program thereby earning points for the ED code of their score card.
Improve Your Black Economic Empowerment Scorecard
If you need to improve your ED score then any contributions you make to our black economic empowerment ED program can be added as contributions to your ED score card. Contributions need not be monetary. Any non-monetary or in-kind contribution you make can also be added to your ED score card. A non-monetary contribution may be any material you supply, such as cement or building sand. Whether your contribution is monetary or non-monetary we will provide you with a Section 18a Tax Certificate which serves as the supporting documentation of your contribution.
How to claim a Section 18A Tax Deduction
The Section 18A tax deduction is one of the few remaining tax deductions still available to taxpayers. A Section 18A tax deduction is the deductions for donations made to registered public benefit organisations (PBOs). The amount of the deduction may not exceed 10% of taxable income. Here is a list of the requirements:
- The donation must be a bona fide donation. The donation may be in cash or in-kind. The donation must be a free will offering with no conditions attached to it;
- The donation must be made to a qualifying institution or public benefit organisation (PBO), which must carry on activities that are listed in Part II of the Ninth Schedule of the Income Tax Act;
- The donee must have provided the donor with a section 18A receipt.
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New Black Economic Empowerment Codes of Good Practice
On the 11th of October, 2013, the Department of Trade and Industry gazetted the revised BEE codes of good practice. There is quite a shift from the old black economic empowerment codes and it will appear that the charity sector is going to be adversely affected by the new codes. The key changes include:
- The generic scorecard has been reduced to five elements;
- There is a transitional period of 12 months until 11 October, 2014, before the final codes are applicable;
- Employment Equity and Management Control have been consolidated;
- Preferential Procurement and Enterprise Development have merged to form Enterprise and Supplier Development;
- The threshold for Exempted Micro Enterprises (EMEs) has been adjusted from R5 million to R10 million;
- The threshold for Qualifying Small Enterprises has been adjusted from R5 – R35 million to R10 – R50 million;
- All companies, except EMEs, will be required to comply with the five elements of the scorecard.