Blog

13
Oct 2018

Four Reasons Why Corporates Would Use AlumnusOnline To Support Schools

  • 0 Comments
  • Share :

Four Reasons Why Corporates Would Use AlumnusOnline To Support Schools

For most people it is unfathomable why big corporates would go the route of supporting schools through a third party, in this case, AlumnusOnline, as opposed to going directly to schools and helping there. It can be understandably confusing but there are merits in so doing. While the direct route may seem commonsensical and practical, there are other things that donating corporates also look for, which may not be immediately obvious to an average person. As a matter of fact, for corporates, donating to a cause does not only have to make sense, but it must also have a mutual benefit to the company. Let me outline some of these things that make donor companies opt for the less obvious route:

1.  Tax Incentives

Company annual tax bills can really be a huge deal. Some of the company tax bills can be so ridiculously exorbitant that a smallest percentage of tax cuts could mean a lot to that company’s bottomline. I am personally not privy to a company that is not always on the lookout for opportunities that may result in them getting some form of tax rebates. Therefore most corporates prefer to work through organisations that will issue them with Tax Deductible certificates or receipts to give themselves a chance to benefit from those rebates. Such organisations receive that “status” from the Receiver of Revenue after grueling due diligence processes. AlumnusOnline, therefore, also successfully underwent that rigorous vetting process and was granted what is called a Section 18A Status to issue these documents to donors. In that way, it makes them a vehicle of choice for companies who wish to partake in the disbursements of donations to deserving causes.

2.  Broad Based Black Economic Empowerment (BBBEE) Legislation

As ridiculous as it may sound, but most companies are struggling to meet the stringent BBBEE targets in terms of the country’s company legislation. There are even rumours of companies engaging in underhand methods just to ‘beat the system’ and enjoy various benefits associated with this legislation without adhering to the requirements of its Code of Conduct. On the other hand, some companies opt to play fair and use their spend to satisfy the requirements of this legislation. Donations to noble causes thus become another measure that these corporates use to contribute towards Socio-Economic Development (SED) and Skills Development, among other BBBEE codes, as required by law. This way they are able to get BBBEE points which then improve their scorecard and, consequently, enhance their compliance with the BBBEE Code of Conduct for companies. So, organisations like AlumnusOnline have positioned themselves such that they take the trouble of ensuring efficient administration of donor instructions by managing those donations for maximum impact (in schools, in their case) so that the donors can get their BBBEE-compliance documents from one source, score their points accordingly and merrily bask as good corporate citizens. On their part, AlumnusOnline, using the expertise of their more revered partners, carry out the donor instructions and ensure that donors get the best value for their donations.

3.  Publicity

There is a new saying that: “If it is not in the social media, then it did not happen”. This also applies to the publicity that is generated and duly given to the kind acts of giving. It is very rare for any corporate to want to donate to a good cause and, thereafter, quietly walk into the sunset. They always want to get some kind of mileage for their benevolence, and, perhaps, for a good reason. At the end of the day, their act of kindness must benefit them as well. For example, they want the public to compare them favourably against their competitors; they want to appeal to the hearts and minds of their customers for loyalty. Importantly, they want their brand to be ‘top of mind’ for people who are looking for the services or products they provide. Therefore, AlumnusOnline becomes attractive for such companies because it has an online presence where the donating company’s brand can be showcased. Crucially, AlumnusOnline has developed some strategic partnerships with other organisations that, by virtue of association, stand to elevate the brands of the donor companies many-fold. It becomes a win-win situation for all involved.

4.  Good Corporate Citizens

Lastly and certainly not the least, companies will always look for partnerships and associations with organisations that will enhance their image as good corporate citizens. AlumnusOnline offers that niche to potential donors. In focusing on Education, they have prudently isolated the nation’s Achille’s Heel as their target area, and built a neat wall of integrity and credibility around themselves through their partnerships with a number of global and regional companies. Big corporates included, everyone realizes the mutual benefits for all from a revitalized schooling system: a fundamental pillar for social and economic development. It therefore makes perfect sense for companies to want to occupy the same space as AlumnusOnline to leverage on that altruistic posture that it presents. Besides, AlumnusOnline ameliorates the burden of generating documentary evidence for these donors and generally gives credence to their noble gestures.

 

We would like to know your views on this post. Comment below to share your views.

Categories