Article – Can a non-profit organisation (NPO) be measured under the B-BBEE codes of good practice?

NPOs are already covered as a measured entity in terms of the Codes of Good Practice (the Codes) and are regarded as specialised enterprises (do not have ownership). Their B-BBEE compliance is measured in terms of statement 004.

Specialised enterprises are classified in terms of annual turnover, allocated budget or gross receipts. This means that a specialised entity with R0 and less R10 million annual turnover/allocated budget/gross receipts are regarded an as Exempted Micro Enterprise (EMEs), if annual turnover/allocated budget/gross receipts is above R10 million but less R50 million it is called a Qualifying Small Enterprise (QSE), and those with annual turnover/allocated budget/gross receipts of R50 million above are regarded as large entities.

Specialised EMEs are given an automatic level 4 but if it has 51% of black beneficiaries it will be level 2, and 75% black beneficiaries it will obtain a level 1. EMEs only have to obtain a sworn affidavit.

Specialised QSEs have to be verified by an accredited verification agency (http://www.sanas.co.za) to obtain a B-BBEE certificate. But if it has 51% of black beneficiaries it will automatically be level 2 and 75% black beneficiaries it is a level 1. Also has to complete a sworn affidavit for QSEs.

Large specialised entities have to be verified by a verification agency.

For this and other FAQs on B-BBEE visit the B-BBEE Commission website at https://bbbeecommission.co.za/frequently-asked-questions/

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