Oliver’s House has a level 1 Black Economic Empowerment (BEE) certificate.
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 Early Childhood Development center 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 defined by the B-BBEE codes are as follows:
- Early Childhood Development center – 100% black
- Zenzele Community Development – 100% black;
- Educational Learning Centre – 95% black;
- Computer Training Centre – 95% black.
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.