For businesses already engaged in, or looking to expand their B-BBEE scorecard activities, choosing an appropriate BEE partner to help meet those objectives can be a daunting task.
Sandy Chapman, Finance and Operations Manager at Rays of Hope, says that business should look for a B-BBEE partner that not only ‘ticks the boxes’ for scorecard requirements, but that also has a working, long-standing relationship with the communities it serves.
“Businesses should do background checks to confirm the credibility of the NPO they are considering partnering with. It’s also a good idea to engage a business that the NPO has already engaged or currently works with as a B-BBEE partner as a reference,” says Chapman.
Secondly, business must ensure that the NPO is able to provide them with:
- The percentage of its beneficiaries who are black people. For exempted micro enterprises (EME) or Specialised Qualifying Small Enterprise (QSE), if 75% or more of its beneficiaries are black people it will automatically be deemed a level 1 status.
- A list of the beneficiaries, with their full names and ID numbers
- A clear idea of how funds will be utilised
- What the objectives of the NPO and its programmes are
- Annual turnover
- Annual audited financial statements
Thirdly, Chapman advises that businesses must ensure that the NPO has
- An active and diverse Board in place, which is functioning correctly
- Independent auditors who conduct regular annual audits
- Sound financial controls, policies and procedures in place
- Compliance with Department of Social Development, with all its annual submissions up to date.
“At the end of the day, businesses must keep in mind that they will be audited, which makes it important to partner with the right NPO for their B-BBEE needs,” Chapman adds.
Rays of Hope is a Non-Profit Company (NPC) and a Public Benefit Organisation (PBO), which manages a large number of social outreach programmes in Alexandra Township (Alex) in northern Johannesburg. Rays of Hope has been partnering with the Alex community for over 30 years, and our affidavit confirms the 100% Black beneficiaries. All cash donations are eligible for a Section 18A certificate.
