B-BBEE and Section 18A


B-BBEE and 18A

Is B-BBEE boring or beneficial? And who wouldn’t want a tax break from SARS?

Broad Based Black Economic Empowerment (B-BBEE) points and Section 18A receipts are words often dropped into conversation when NPOs engage potential sponsors. But what does this actually mean for your company?

B-BBEE is not about giving away freebies just to meet legislative requirements; rather, when implemented correctly, it aids in job creation, provides competitive edge and stimulates economic growth. Contributions to compliant NPOs will not help you to fulfil your corporate citizenship, but also ensure advances on your Business’ score card in terms of B-BBEE points.

The EARTH Centre ensures that the majority of its beneficiaries are B-BBEE candidates, which means that we are a B-BBEE Level 1 NPO. This guarantees that your business is recognised in terms of the FULL value of the contribution.

In terms of Section 18A certificates, an individual or company who has donated funds or property in kind to an organisation is entitled to a tax deduction. The Organisation to which the funds / items are donated must be a Public Benefit Organisation (PBO) which allows them to issue the sponsor with a Section 18A receipt. This Tax-Deductible Certificate (Section 18A) indicates that your contribution directly influences and is utilised for Development Programmes.

Donations can therefore be excluded from the Total Measured Procurement Spend (“TMPS”), which means you will deduct 100% of the donation from your overall procurement spend if such donation is made in terms of your NPAT (1%).

The EARTH Centre is 100% compliant with all of the above:
• NPO number: 211 -253
• NPC registration number: 2013 / 212606 / 08
• PBO number: 930 058 725
• B-BBEE Level 1 compliant

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