It is only through collective collaboration and action that an economically prosperous nation is possible. Together we can activate a new economic and social order for all South Africans.
The advancement of the South African economy requires collaboration between the public and private sector, large and small businesses alike. It necessitates the energy and commitment of all South Africans to work to achieve meaningful and sustainable development through the creation of economic opportunities.
The importance of becoming a Donor cannot be overstated, as it means the difference between success and failure for emerging businesses. Without access to capital and resources, chances of moving from a start-up to a viable business are exceedingly difficult.
By donating to Shanduka Black Umbrellas, you are investing in a credible, viable programme of economic development and transformation through the support of black entrepreneurship. Additionally you are supporting the business environment that links big business to smaller black enterprises, thus bridging the traditional gaps that no longer have a place in a new economic order.
Become a Donor today to be part of this change.
You can increase your B-BBEE Score by contributing towards Enterprise Development with Shanduka Black Umbrellas and help foster an economy of entrepreneurs.
Your contribution as a company can be achieved through:
- Monetary Donations;
- Donation of business goods & services;
- Participation in the voluntary mentor programme;
- Providing procurement opportunities to businesses within the SBU incubators.
According to the Broad Based Black Economic Empowerment Act, companies are required to contribute 3% of Net Profit After Tax (NPAT) towards enterprise development to qualify for the 15 points available in terms of the scorecard.
Shanduka Black Umbrellas has been certified by Empowerdex as fully compliant with the requirements for the B-BBEE Codes of Good Practice and all relevant criteria therein for the recognition of Enterprise Development Contributions.
Empowerdex has verified that all beneficiaries of the Shanduka Black Umbrellas initiative are Category A beneficiaries. Therefore the full value of contributions made to Shanduka Black Umbrellas by donor entities may be recognised at a factor of 1.25 when calculating the donor entities’ Enterprise Development Contributions.
Thus a company donating money to Shanduka Black Umbrellas would be able to claim 125% of its contributions as Enterprise Development Contributions.
For example, a company donating R100,000 to Shanduka Black Umbrellas would be able to claim R125,000 (R100,000 x 125%) as an Enterprise Development Contribution.
In addition, Shanduka Black Umbrellas has been granted Section 18A Tax Exemption by SARS, thus donations of cash or quantifiable assets are deductible for tax purposes within the limits prescribed in terms of Section 18A of the Income Tax Act.
Donations of goods or services, which will assist in the operation of the offices, development of the clients and expansion of existing operations, are also greatly appreciated.
Overhead costs, which are allocated to supporting the activities of Shanduka Black Umbrellas and not directly incurred may be recognised at a benefit factor of 80%. However, with the enhancement factor of 1.25, 100% of the allocated overhead cost may be claimed for scorecard purposes.
20 points on the B-BBEE scorecard are available for Preferential Procurement calculated as follows:
|Criteria||Weighting Points||Compliance Target|
|Years 0 – 5||Years 6 – 10|
|B-BBEE Procurement Spend from all Suppliers based on the B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend||12||50%||70%|
|B-BBEE Procurement Spend from Qualifying Small Enterprises or Exempted Micro-Enterprises based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend||3||10%||15%|
|B-BBEE Procurement Spend from any of the following Suppliers as a percentage of Total Measured Procurement Spend
Suppliers that are 50% black owned (3 out of 5 points) or;
Suppliers that are 30% black women owned (2 out of 5 points)
In terms of Statement 000,
- Exempted Micro Enterprises (EME) are any enterprises which have annual revenue of less than R5 million and have a deemed BEE Procurement Recognition of 100% and BEE Status of Level 4 Contributor. If the EME is more than 50% owned by black people or black women, it is promoted to a BEE Status of Level 3 Contributor and BEE Procurement Recognition of 110%.
All SMMEs within Shanduka Black Umbrellas are 100% black-owned Exempted Micro Enterprises and thus have a 110% BEE Procurement Recognition level. In addition, if the Measured Entity procures goods and services from a supplier that is a recipient of enterprise development contributions from the Measured Entity under Code series 600, the recognisable B-BBEE Procurement Spend that can be attributed to that Supplier is multiplied by 1.2.
Thus if the Measured Entity contributes to Shanduka Black Umbrellas as part of its Enterprise Development initiatives and procures from a client within the programme, the BEE Procurement Recognition will be enhanced by a further 20% i.e. 132%.
If the Measured Entity spends R100,000 with a client within the Shanduka Black Umbrellas programme and makes an enterprise development contribution to Shanduka Black Umbrellas, the BEE Procurement Recognition will be as follows: R100,000 x 110% (EME and black ownership > 50%) x 120% (enterprise development contribution to EME via supplier development programme) = R132,000 (32% enhanced benefit).
If the Measured Entity spends 15% of its Total Measured Procurement Spend with clients within Shanduka Black Umbrellas, it will be entitled to a further 6 points, 3 points because all SMMEs are EMEs and 3 points because all clients are more than 50% black owned.
For those companies who wish to diversify their supply chain by including more black owned EMEs, a collaborative solution is available through Shanduka Black Umbrellas whereby 100% black owned clients who meet the companies’ supply chain needs are identified via the companies’ supplier databases, the Shanduka Blackpages and the existing SMMEs (within the Shanduka Black Umbrellas programme) and a managed supplier development solution is provided via the Shanduka Black Umbrellas incubator.
The managed supplier development solution will ensure the risk to companies in bringing new suppliers into their supply chain will be minimised via the systems and processes already operational under the Shanduka Black Umbrella’s program, namely:
- a rigorous selection program that includes credit and criminal checks to ensure the most appropriate SMMEs are identified;
- a training and personalised mentoring program that includes benchmarks on business plans which the clients prepare themselves thus ensuring each SMME is properly prepared and supported to deliver the level of service, quality and pricing required;
- rigorous monthly financial accounts provided for every SMME in the program which enables the corporate suppliers to see the economic benefits provided by the procurement opportunities provided to the clients;
- a monthly evaluation of the progress and sustainability of each client;
- supporting the clients with services and infrastructure such as telecoms, use of vehicles, internet and e-mail etc.
The supplier development programme would also provide significant B-BBEE scorecard benefits to a participating company, as they would be able to claim 125% of the amounts contributed to Shanduka Black Umbrellas for enterprise development purposes and would be able to claim 132% of any procurement from SMMEs within the programme.
Donors are advised to state the branch prefix and their contact telephone number in the reference of their deposit (eg: under Reference………”PTA – 012 326-9196”).
This will go a long way in assisting us to identify the donor, recipient and contact details of the donor.