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24 February, 2010

This article looks at how the global economic downturn is making it difficult for companies to contribute to the development of communities through CSI initiatives. The author argues that corporate philanthropy will disappear as companies struggle to emerge from the crisis. Corporate partners can co-donate with their customers and staff to community-based projects implemented by NGOs and other potential beneficiaries. Poverty, inequality and questionable democracy - some of the realities we live with - could be partly addressed through integrated CSI programmes. Apart from CSI, numerous surveys suggest that South African consumers are increasingly influenced by companies’ environmental and social policies when selecting products and services.

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Things are looking up but we can expect some bumps ahead writes Ann Bown in her annual NPO forecast.  The first signs of economic green shoots are showing - a growth of 2.4 percent for this year is predicted by AfriFocus. Although this is encouraging it will take some time before companies are able to replenish corporate social investment (CSI) budgets, so don’t get too excited

Tshikululu Social Investments has prepared a short context document that looks at South Africa's political, socio-economic and company legislative environment (with an emphasis on matters affecting social investors). The report entitled ‘South Africa’s social investment context in 2010’ serves as a short introduction to the year ahead

The global financial crisis makes it essential that we focus on the need for donors to meet their targets; ensure that available resources are optimised, that the priorities for expenditure are right; and that we look at ways of saving money and at neglected sources of financing. As is the practice in many African cultures, if your fire burns out, you fetch some from the neighbours

I want to express my frustration at the fact that the people at Lotto are allowed to be so chaotic and unprofessional. We are willing to undergo rigorous selection, and to deal with being rejected with good reason. What I am not willing to do, is to sit by and tolerate the incompetent antics of a group of people who are short changing the NPO sector

In the second of a series of articles, Nicole Copley asks whether there are any advantages to dual structures - one which is tax exempt, and the other that does the income-generating work.

In many countries throughout the world, the definition of a non-profit organisation has long been that profits are not distributed - not that profits are not made. It has taken South African tax laws a while to catch onto this distinction. Tax-exempt Public Benefit Organisations (PBOs) are now permitted to trade without limitations. If their trading income does not fit under one of the headings which exempt it they are required to ‘ring-fence’ their trading income, and to pay tax on it, but are granted a generous ‘rebate’ on trading income. It is this ‘rebate’ which makes tax exemption attractive to trading NGOs

NGOs would do well to know that there are a number of potential tax benefits for non profit organisations carrying out public benefit activities in South Africa.

The recent 'Making CSI Matter' conference explored different models and approaches for CSI and development. However, for CSI to truly make an impact in the development sector in South Africa, and to matter to NGOs, we need to create the space for an honest assessment and deliberation about the nature of the relationship between CSI programmes and NGOs.

Consensus emerging from business and government sectors a day after what is probably Trevor Manuel’s swansong budget is that the budget is as good as it can be, given the overarching global economic crisis.

While companies and individuals are becoming more aware of their social responsibilities, funding does not always reach the organisations and projects that have most sustainable solutions to South Africa’s problems. To make giving more effective, GreaterGood SA created the South African Social Investment Exchange (SASIX), where donors can invest in results-driven development projects.

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