Benefits of CSI donations and sponsorships
Owing to the economic influence that big businesses hold, they are in a position to make a real difference when it comes to the many challenges our city faces, especially in the field of donations and partnerships.
Core benefits of choosing the City as your CSI partner
Aside from knowing that your contributions and involvement can make a powerful impact on the lives of those less fortunate, corporate social investment has a number of direct benefits for your business.
Tax exemptions
The City is one of the only local governments that has received an income tax exemption in terms of section 10 of the
Income Tax Act 58 of 1962. Hence, donations to the City are tax deductible, subject to the limitations prescribed in the Act. Donations made to the City are also exempt from donations tax in terms of section 56(1)(h) of the
Income Tax Act as the City is an approved public benefit organisation.
B-BBEE
Some of the programmes may fall under the criteria of ‘socio-economic development ‘ of the
B-BBBEE Act
and allow corporates to rate higher on this element.
Maximising the benefit of CSI donations
The City is well placed to identify gaps and provide examples of what might be needed. We already have existing infrastructure in communities which can be leveraged to increase impact.
We can connect you
The City acts as a hub to connect both internal and external initiatives and businesses. For example, if the City knows of a non-government organisation doing worthwhile drug awareness work and a corporate business looking to support drug awareness work, the City introduces the two, thereby growing a City-wide network and an ecosystem where more individuals and companies can collaborate.
Fast fact
An example of a City of Cape Town partnership is its collaboration with
MaAfrika Tikkun, an NGO that works with under-resourced communities through community development programmes. The City has built a training centre and donated sports equipment for their Mfuleni Community Park.
Our approach to contributions
According to the
policy guidelines on contributions to the City of Cape Town, the City may invite financial contributions by placing a general advertisement or sending a request by letter signed by a delegated authority. The City may only invite contributions for an initiative if there are insufficient funds for the project.
The City uses the money it receives from national government and ratepayers to deliver its services. Corporate contributions in cash or in kind are extremely valued as a top-up source of funding for these projects.
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