How Does Socio-Economic Development Work?
Socio-Economic Development (SED) is about facilitating sustainable access into the economy for black people. In order to gain maximum points in SED, the company has to spend 1% of NPAT.
SED contributions can be monetary or non-monetary. Non-monetary contributions should be converted to a financial value in order to claim points.
The full value of SED contributions made to beneficiaries is recognized if at least 75% of the value directly benefits black people. If not, the value of the contribution will be multiplied by the percentage that benefits black people only.
A record of the following must be kept as they are required during verification:
- date of contribution,
- information on the beneficiary entity proving that 75% or more beneficiaries are black,
- quantifiable non-monetary contributions to beneficiaries,
- thank you letter in acknowledgement of assistance.
EconoServ is able to assist clients find suitable SED beneficiaries or if you would like us to recommend your organisation to our clients – please contact us.