Paragraph 3.2.1 of Statement 500 of the Amended General B-BBEE Codes of Good Practice warrants that a Socio-Economic Development contribution must provide income-generating opportunities. Paragraph 3.2.3 mandates that 75% of the total contribution must benefit Black People; otherwise, the claim will be pro-rated accordingly. For example:
ABC Traders donates R100,000 towards an SED initiative, of which 60% are Black Beneficiaries. The Benefit Matrix allows 100% of a Grant Contribution. However, 100% of the Value of ABC Traders contribution only reaches 60% Black Beneficiaries. The result is that ABC Traders can only claim R60,000.
Socio-Economic Development Services are available to assist Members with insight Socio-Economic Development Contributions.