To make a significant impact in our country by creating jobs and providing education the community has to play a role. We cannot rely solely on Government subsidies. Over the past 10 years in South African companies have made huge strides in becoming better corporate citizens.
CSI has become an increasingly important issued in corporate SA; some large companies spend more than R50m a year on CSI. CSI spending is not a guilt-driven thing anymore; it is a bottom-line tactical issue. Until recently CSI spending was not regulatory however this has changed dramatically with the emergence of the empowerment sectoral charters, which all reward CSI spending in their scorecard mechanisms. For example, both the financial services charter and the draft information and communications sector charter advocate that 0,5% of pre-tax profits be allotted to CSI.
In addition South African tax payers can deduct the value of their donation from up to 10% of the taxable income each year. Scatterlings investors will receive an 18A tax receipt for all donations.
The five top recipient sectors in 2004 were education (36%) of total CSI spend); health (12%); social development (12%); training (10%); and job creating and small business development (10%). All these areas have a direct impact on the running of the business “If we don’t increase the level of education, we will not have the required skills to run our business over the next few years,” say Sam Seepei of the BHP Billiton Development Trust, which oversees the mining groups’ SA CSI Activities.
Scatterlings will continue to source funding to set up schools, we will also rely on companies to assist us in supplying certain materials, like paper, educations toys, building equipment and so on and in addition Scatterlings will endeavour to create sustainability through their franchisee operation by using profits to support, train and set up schools in more remote areas in South Africa and Africa.
We also offer marketing opportunities to investors in the form of branding on our communications or naming rights of schools to mention a few.
If you would like to know more about making a donation or would like to set up a school using our formula please contact us for further information.
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