As Malaysia tides through the third wave of COVID-19 infections with possible economic setbacks, the government is providing incentives for greater public and corporate engagement in driving sustainable socio-economic development.
The Malaysian Global Innovation and Creativity Centre (MaGIC), which operates the Social Impact Matching (SIM) Grant, is providing tax incentives to those contributing to the crowdfunding activities of a social enterprise dealing with social and environmental challenges. Cash donations made between 1st August 2020 till 31st July 2021; individual, corporate or company donors of an effective SIM Grant holder may receive tax receipts of up to 10% of their aggregate income.
“Instead of a one-off charity or donation, individuals and businesses can channel their money to support solutions from social enterprises that create impact in a sustainable manner,” explained Dzuleira Abu Bakar, CEO of MaGIC.
How the SIM Grant Tax Reward works:
The SIM Grant, announced under the Short-Term Economic Recovery Plan (PENJANA), aims to help local social and other social impact enterprises to maintain their projects and services leverage their fund-raising capacities, raise public awareness of social innovation and scale up their solutions for good social and/or environmental results. The grant focuses on solutions in five fields of effect, namely community livelihood, food security, health and social wellbeing, environmental protection and heritage preservation.
Any social enterprises, individuals or other organisations that use their business as a tool to produce a sustainable, scalable and positive effect on society are qualified. This is a 1:1 government crowdfunding matching grant mechanism for a minimum of RM5,000, according to the eligibility requirements, up to a maximum of RM500,000 per bid.
Please visit https:/mymagic.my/penjana-sim-grant or contact penjanasegrant@mymagic.my for the full terms and conditions of the SIM Grant and tax incentives, including the effective date, how tax receipts will be disbursed and limited amounts.
To find out more about SE Accreditation, visit https:/central.mymagic.my/sea.
