Donation Policy

Last modified: August 04, 2025

  • Purpose
  • Applicable Laws
  • Definitions
  • Objectives of the Policy
  • Scope
  • Acceptable Donations
  • Procedure for Receiving Donations
  • Disbursement of Donations
  • Ineligible Use and Beneficiaries
  • Application for Donation Support
  • Approval Process
  • Donation Agreement Requirements
  • Monitoring and Reporting
  • Record keeping
  • Conflicts of Interest
  • Policy Review
  • Approval and Commencement

1. Purpose

The purpose of this Donation Policy is to establish a clear, lawful, and accountable framework for the acceptance, management, and disbursement of donations by the Lerato Bodibe Foundation (“the Foundation”), a registered nonprofit organisation (NPO).This policy ensures that donations are handled in compliance with applicable South African legislation and used solely to advance the Foundation’s public benefit objectives

2. Applicable Laws

This policy complies with and is guided by the following South African legislation
relevant to donation governance:

2.1. Nonprofit Organisations Act 71 of 1997
• Regulates registration, governance, and accountability of NPOs.
• Requires proper record-keeping, financial reporting, and responsible management of donated assets.
2.2. Income Tax Act 58 of 1962
• Section 10(1)(cN): Provides for income tax exemption for approved Public
Benefit Organisations (PBOs).
• Section 18A: Allows qualifying PBOs to issue tax-deductible receipts for
donations.
• Section 30: Sets criteria for PBO status, including non-distribution of profits and
sole use of assets for public benefit.
NPO Number: 317-340
LERATO BODIBE FOUNDATION (NPC) 2024 / 282817
/ 08 – Non Profit Company
Johannesburg – Tel: +27 11 513 4290 – Address: 16
Culross Road, Bryanston, Johannesburg, 2191
Website: www.leratobodibe.com –
www.rocvest.com – www.bodibefoundation.org
Trustees: Mr Lerato Bodibe, Mrs Paballo CoetzeeMotlahasedi, Mr Charles Phiri
• Ninth Schedule: Lists the public benefit activities eligible under Sections 30 and
18A.
2.3. Financial Intelligence Centre Act 38 of 2001 (FICA)
• Requires due diligence to prevent money laundering through donations.
• Obligates the Foundation to report suspicious donations and verify donor
identity when necessary.
2.4. Protection of Personal Information Act 4 of 2013 (POPIA)
• Protects the personal information of donors and beneficiaries.
• Ensures transparency and consent in data processing.
2.5. Prevention and Combating of Corrupt Activities Act 12 of 2004
Prevents misuse of donations for undue influence, bribery, or conflict of interest

3. Definitions

• Donation: A voluntary, non-refundable contribution of money, goods, or services with no expectation of return.
• Donor: Any individual, trust, company, or institution making a donation.
• Beneficiary: An individual, group, or organisation receiving support through the Foundation.
• PBO: A Public Benefit Organisation as approved under Section 30 of the Income Tax Act.
• 18A Certificate: An official receipt issued to qualifying donors under Section 18A for tax deduction purposes

4. Objectives of the Policy

• Ensure lawful and transparent receipt and disbursement of donations.
• Provide a reliable mechanism for donor recognition and accountability.
• Prevent conflict of interest and promote good governance.
• Align all donations with the Foundation’s registered public benefit activities.

5. Scope

This policy applies to all:
• Donations received by the Foundation (financial or in-kind).
• Disbursements made to beneficiaries.
• Staff, board members, volunteers, and third parties acting on behalf of the Foundation.

6. Acceptable Donations

The Foundation may accept:
• Monetary contributions: Once-off, recurring, or bequests.
• In-kind donations: Goods, services, equipment, or property.
• Endowments: Conditional or long-term funds for specific purposes.
• Donations may be restricted (purpose-specified) or unrestricted, subject to Board approval. The Foundation reserves the right to decline any donation that:
• Is unlawful, unethical, or misaligned with its mission.
• Includes conditions that are unreasonable or not feasib

7. Procedure for Receiving Donations

7.1. General
• All donations must be receipted and recorded.
• Acknowledgements will be sent to donors upon receipt.
7.2. Due Diligence (FICA and POPIA)
• Donations above R25,000 or from foreign sources may be subject to FICA checks.
• Donor information is processed in accordance with POPIA.
• Suspicious activity must be reported to the Financial Intelligence Centre (FIC).

8. Disbursement of Donations

Donations will be used exclusively for:
• Projects and programmes that fall under approved public benefit activities in the Ninth Schedule.
• Beneficiaries or communities within the Foundation’s geographic and thematic focus.
• Emergency relief or once-off interventions, where appropriate.

9. Ineligible Use and Beneficiaries

Donations will not be allocated to:
• Political parties or campaigns.
• For-profit companies or entities unless compliant with B-BBEE and enterprise development standards.
• Board members, staff, or related parties (unless under approved and documented circumstances).
• Projects outside the Foundation’s mandate or South Africa (unless disaster relief is authorised by the Board).

10. Application for Donation Support

Organisations or individuals may apply in writing with:
• Organisation name, registration number, and governing documents.
• Contact details and summary of past work.
• Detailed proposal with objectives, budget, duration, and impact.
• Audited financials (if applicable) and proof of governance.

11. Approval Process

Applications will be evaluated by a Donations Committee and presented to the Board or delegated authority for:
• Eligibility and legal compliance.
• Strategic alignment.
• Financial feasibility and risk.
NPO Number: 317-340
LERATO BODIBE FOUNDATION (NPC) 2024 / 282817
/ 08 – Non Profit Company
Johannesburg – Tel: +27 11 513 4290 – Address: 16
Culross Road, Bryanston, Johannesburg, 2191 Website: www.leratobodibe.com –www.rocvest.com www.bodibefoundation.org
Trustees: Mr Lerato Bodibe, Mrs Paballo CoetzeeMotlahasedi, Mr Charles Phiri
• No donation may be disbursed without a signed Donation Agreement

12. Donation Agreement Requirements

Agreements with approved beneficiaries must:
• State the amount and purpose.
• Outline usage conditions and timelines.
• Include reporting, audit, and review requirements.
• Include clauses for return of funds or termination for non-compliance.

13. Monitoring and Reporting

• All beneficiaries must report on usage of funds in line with agreement terms.
• The Foundation may conduct site visits and independent verifications.
• The Board will receive a quarterly report on donations received and disbursed.
• Donor-specific reports will be issued on request

14. Record keeping

Donation records will be kept for at least five (5) years including:
• Donation receipts
• Signed agreements
• Donor and beneficiary correspondence
• Financial and programme reports

15. Conflicts of Interest

All Foundation officials must:
• Declare any actual or perceived conflict of interest.
• Refrain from influencing donation decisions where a conflict exists.
• Comply with the Foundation’s Conflict of Interest Policy and Companies Act
duties.

16. Policy Review

This policy shall be reviewed annually, or earlier if:
• Legislation changes;
• SARS, NPO Directorate, or FIC requirements are updated; or
• Strategic changes in the Foundation’s operations warrant it.

17. Approval and Commencement

This policy is effective from the date of approval by the Board of Directors of the Lerato Bodibe Foundation