Many organisations choose third party facilitators to distribute their Socio-Economic Development (SED) contributions, which B-BBEE Legislation allows for. However, organisations must note that, according to B-BBEE Legislation, the ultimate benefit needs to flow to the intended Black Beneficiaries.
The B-BBEE Commission’s SED Brochure, published in September 2019, addresses third-party facilitation of such contributions. Third party facilitators for SED contributions are usually Non-Profit Organisations (NPOs) or Public Benefit Organisations (PBOs), including Non-Profit Companies (NPCs).
NPOs, PBOs and NPCs are Specialised Enterprises for purposes of B-BBEE measurement. Their B-BBEE compliance is measured in terms of Statement 004 – otherwise known as a Specialised Scorecard.
Socio-Economic Development Services are available to guide organisations in facilitating SED contributions in line with the requirements.
Comments