This is a repost of one of my informative Caird Code Rules as per a reader's request. I've added in another little feature that I've never done before - if you place your mouse on the underlined text it will show the sections in the codes that I'm referring to.
Charities and other section 21 companies that are looking for SED money
Paragraph 5 of Code 000, statement 004 states very clearly that their BEE status is not a consideration in determining whether they will be beneficiaries of SED contributions
There are some NGOs/section 21s who provide certain types of services to corporates to raise money for their core activity. Under these circumstances they become a supplier to that corporate and might be required to produce a specialised enterprises BEE scorecard (statement 004).
Entities or companies providing enterprise development services
Now this is a very common occurrence. There are many private companies providing these services, Endeavor and Raizcorp are two that I know rather well. This practice is contemplated by code 600, paragraph 3.2.5.12. It does not appear that these companies actually need to produce a BEE scorecard to provide ED services. One of the exclusions under Code 500 (Preferential Procurement) is empowerment related procurement – more specifically (paragraph 6.5.2)
investments, loans or donations qualifying for recognition under any statement under Code series 600 or 700
This strongly suggests that that expenditure is excluded and hence a BEE scorecard is not needed.
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