We are looking to expand our BEE initiatives further to facilitate strategic CSI and CSR partnerships that will provide access to diversified funding for our organisation. Therefore, Kheth’Impilo now offers a structured business case, specifically geared towards BEE and Socio-Economic Development donations that qualify for section 18A rebate to further improve tax efficiency for corporate donors.
Involve corporate donors with our existing job creation models to secure further funding as a BEE spend initiative that enables and encourages sustainable career pathing for previously disadvantaged black matriculants.
Expand the Kheth’Impilo economic transformation project for further development and upliftment of disadvantaged black matriculants and their communities through education and health.
Position your company brand as socially responsible through a value added partnership that provides return on BEE spend and investment.
Corporate respondents were asked to rank the factors describing their business rationale for social investment, choosing up to three drivers. Most (84%) stated that a moral imperative to ‘do the right thing’ was one of the top-three considerations, followed by reputational benefits (60%). More companies cited the Department of Trade and Industry’s (dti) Broad-based Black Economic Empowerment (BBBE) Codes of Good Practice as a key driver (44%) rather than industry sector charter obligations (28%).
Most CSI budgets are calculated using financial ratios
The most common method of delivering CSI budgets in 2013 was a percentage of post-tax profit. On average, the 41% of companies following this approach are small. When viewed over a long period, shifts in methodology are apparent. The use of post-tax profits as a basis for budget calculations has nearly tripled since 2003. At the same time, the proportion of companies determining their budgets through more qualitative means, such as company or board decisions, has more than halved. These changes can largely be attributed to the introduction in 2007 of the dti’s BBBEE Codes of Good Practice, which recommend expenditure of 1% NPAT on socio-economic development (SED). The proportion of companies earning the full five points for SED on the BBBEE scorecard continues to rise, with 60% of companies earning five points in 2013 (versus) 53% in 2012).