Donations: Good for the corporation; good for the soul.
10 May is "Donate Wages to Charity Day".

“Successful people have a social responsibility to make the world a better place and not just take from it.” Carrie Underwood

We - as successful business people - do have an obligation to pay it forward and invest in our communities. In South Africa, we don’t have to look very far to find a worthy individual or organisation that can use our help. But helping others and investing in our communities isn’t just good for its karmic value; there are tax and BBEEE rating advantages to this philanthropic behaviour too.

Improving your company’s BBEEE scorecard is a major advantage in SA. Your BBEEE scorecard could be what is holding you back from getting that game-changing contract. But, other than an equity change, how can you improve your score?

Well, donating money is one way, but donating skills, equipment, and key personnel is another. According to the Guidelines (Department of Trade and Industry 2007 ) “The Socio-economic development scorecard contains one indicator that measures socio-economic development contributions to defined beneficiaries, as well as contributions to certain Approved Projects such as projects in rural or underdeveloped urban areas, earmarked by government for development and any sector specific contributions which have been approved through gazetting of a particular industry’s Sector Code.”

In terms of donating money, Donations Tax is levied at a flat rate of twenty per cent on the value of the donation or gift but it only applies if you have donated over R100 000 in that tax year. So, Donations Tax is only levied on the value of the donation exceeding R100 000. When making a donation, you request or download the IT144 form from SARS and ensure that the Donations Tax (if applicable) is paid by the end of the month in which the donation has been made. So it’s really tax-savvy.

These are just some of the ways that being a good guy actually pays off in the business world. 

For more information about business coaching and business consulting services, contact me: 083 256-0378  |   This email address is being protected from spambots. You need JavaScript enabled to view it. 

Thanks for reading. Please feel free to like, comment, share, tweet, retweet, pin, quote, email etc. If you would like to have these insights plus additional exclusive content delivered to your inbox, remember to sign up HERE.