WE MiND / CDII — PROGRAMME B-BBEE, ESG & s18A COMPLIANCE FRAMEWORK

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HOW TO USE THIS DOCUMENT

This is one reference document covering B-BBEE scorecard eligibility, ESG reporting, and Section 18A tax treatment for any We MiND Foundation programme — not only SmartCommute. Each section is self-contained: read the whole document, or jump directly to the section relevant to your programme or query using the index below.

DOCUMENT INDEX

SECTION 1 — OVERVIEW

Every We MiND Foundation pillar/initiative card that links through to a donation or partnership pathway links through to this document. The specific programme changes — a SETA Learnership legal-fee sponsorship, a commuting Band-based disbursement, a future Soshanguve or Cullinan initiative — but the underlying compliance skeleton stays the same, and is already proven, not theoretical:

• CDII acts as Programme Principal in every case; the partner/employer acts as Disbursement Agent or Sponsor only, never as the programme's originator or controller.
• This structure predates SmartCommute. The same model — CDII independence, Board Resolution, Section 18A certification, SED verification — was already applied to a 2025 SETA Learnership sponsorship, over a year before SmartCommute existed. SmartCommute is the largest and most-documented application of the model, not its origin.
• What varies by programme: the disbursement mechanism (payroll-based vs. project-based vs. one-off), the beneficiary type (employees vs. learners vs. enterprise-development beneficiaries), and which B-BBEE element(s) the programme most naturally qualifies under. What doesn't vary: the independence requirements (§5B), the no-double-dipping rule (§2, §4), and the documentation a Verification Agency or auditor will ask for (§5A).

Use the index to go directly to what's relevant — a full read isn't required to act on any one section.

SECTION 2 — B-BBEE SCORECARD ELEMENTS (SEQUENTIAL ORDER)

The Generic Scorecard runs five elements, Statement 100 through Statement 500, totalling 105 points before bonus points. All five are listed here in order — including the two elements a direct donation cannot claim against — so nothing is left as an unexplained gap for an auditor or verification agency to query.

SECTION 3 — ESG REPORTING

Unlike B-BBEE, ESG reporting is not a points-scored scorecard — it is narrative and governance disclosure. This section gives partner companies the content structure to represent their We MiND programme participation accurately within their own ESG/sustainability reporting, aligned to South Africa's current governance code.

Governance context — King V

King V is South Africa's current corporate governance code, released by the Institute of Directors South Africa and the King Committee on 31 October 2025, replacing King IV in full. It applies to financial years commencing on or after 1 January 2026 (early adoption encouraged), and is mandatory for JSE-listed companies under the JSE Listings Requirements; for other organisations it remains a voluntary, apply-and-explain framework. It comprises four documents — Foundational Concepts, the Code (13 principles), the Glossary, and the Disclosure Framework.

Two principles are most directly relevant to a We MiND programme partnership:

• Principle 3 — the governing body ensures the organisation's purpose, strategy, and business model support sustainable value creation within its economic, social, and environmental context.
• Principle 4 — the governing body ensures external reporting enables stakeholders to assess how the organisation creates, preserves, or erodes value over time, across the full reporting suite (integrated report, sustainability/ESG report, climate report, etc.).

King V also endorses double materiality — reporting both on matters that could affect the organisation's own financial position or access to capital, and on matters that affect the organisation's ability to create sustainable value for stakeholders more broadly. A We MiND programme partnership can speak to both: workforce resilience and talent retention (financial materiality) alongside genuine community economic access (impact materiality).

Content template — ESG Impact Summary

The same fields apply regardless of which pillar or programme is involved:

Eligibility

Any programme meeting the Skills Development, Enterprise & Supplier Development, or Socio-Economic Development eligibility criteria in §2 is automatically eligible for ESG narrative inclusion using this template — the same underlying evidence (beneficiary numbers, demographics, governance controls) serves both purposes without separate collection.

Tone guidance

Present ESG value as a genuine, defensible contribution — social sustainability, governance assurance, workforce resilience — rather than a guaranteed compliance or certification outcome. This mirrors the same caution already applied to Section 18A (§4): the underlying activity is real and valuable; the reporting language should not overstate certainty beyond what a partner's own advisers would confirm.

SECTION 4 — SECTION 18A

Applies to any We MiND Foundation programme where CDII issues a tax-deductible donation receipt — not SmartCommute-specific.

Eligibility criteria

• The donation must be bona fide: a voluntary, gratuitous gift, given out of liberality or generosity, where CDII (as donee) is enriched and the donor impoverished.
• No quid pro quo: no reciprocal obligation and no direct or indirect personal benefit for the donor, or for any person connected to the donor. If any consideration at all passes back to the donor, it is not a donation for s18A purposes.
• Must be made to CDII while its Section 18A approval is current (PBO No. 930 041 456), and used exclusively for an approved Public Benefit Activity listed in Part II of the Ninth Schedule to the Income Tax Act.
• Deductible amount is capped at 10% of the donor's taxable income for that year of assessment.
• Must be actually paid or transferred during the year of assessment being claimed.

Verification — receipt requirements (current, effective 1 March 2026)

SARS Notice 6762 (Government Gazette 53589, 24 October 2025) prescribes the mandatory content of a valid Section 18A receipt, replacing the 2023 rules, effective for all receipts issued on or after 1 March 2026 — currently in force. A valid receipt must contain:

• The reference number issued by SARS confirming CDII's Section 18A approval
• Date the donation was received
• Name and address of CDII (the approved organisation)
• Donor's full name and address
• Donor's nature — individual, company, or trust
• Donor's ID number (individual) or registration number (company/trust)
• Donor's income tax reference number
• Amount of the donation, if cash — or a detailed description and fair market value, if in kind
• A unique receipt number
• Certification that the receipt is issued for Section 18A purposes and that the donation will be used exclusively for approved Public Benefit Activities, issued in the year the donation is received

Updated content template — Section 18A Certificate

No double-dipping — cross-reference

As set out in §2: the same Rand of expenditure may be claimed under Section 18A or B-BBEE SED points, never both. Where a donor wishes to split spend between the two, CDII issues separate certificates for each portion, recorded via a Benefit Election Form — see §5.

SECTION 5 — VERIFICATION CHECKLISTS

What a Verification Agency, auditor, or partner's own compliance team needs to see — split by who provides it, so nothing is assumed to exist on either side. Applies to any We MiND programme structured as CDII-as-Principal, partner-as-Disbursement Agent (the same model already in place for SmartCommute, and consistent with CDII's 2025 SETA Learnership sponsorship precedent).

CDII PROVIDES   PARTNER SOURCES   JOINT

A. Master Checklist — What CDII Must Provide

B. Checklist — Programme Independence (replaces Director Independence Declaration form)

What a VA/auditor is checking for, and who confirms it:

C. Checklist — Benefit Election (replaces Benefit Election Form as a checklist view)

This document is prepared by Community Development Initiatives International NPC as a general reference on B-BBEE, ESG, and Section 18A treatment as they may apply to We MiND Foundation programmes. It does not constitute legal, tax, or accounting advice, and should not be relied on as a substitute for a partner's own independent professional advice. Figures and requirements are stated as understood as at 30 August 2026 and are subject to change under future legislative, regulatory, or Codes amendments. © 2026 Community Development Initiatives International NPC (CDII). All rights reserved. No part of this document may be reproduced or distributed without CDII's prior written consent, save for a partner's own internal compliance and reporting use.