Kuala Lumpur, 16 October 2020 – Malaysian Global Innovation and Creativity Centre (MaGIC) which manages the Social Impact Matching (SIM) grant, is offering tax incentives on behalf of the government to those contributing towards a social enterprise’s crowdfunding activities.
MaGIC chief executive officer Dzuleira Abu Bakar said individuals, corporate or business donors of a successful SIM Grantee may receive tax receipts of up to 10 per cent of their aggregate income for cash contributions made between Aug 1, 2020 and July 31, 2021.
“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,” she said.
She added that social enterprises are businesses that proactively create a positive social or environmental impact in a financially sustainable manner.
“So effectively, what we are fostering is a virtuous cycle of good – where these solutions address a public need, the public participates in supporting the development and expansion of the solution, and the government provides an incentive to spur the giving,” she said.
The SIM grant, under the government’s Short-Term Economic Recovery Plan (PENJANA), aims to support local social enterprises and other social impact businesses to sustain their initiatives and programmes, harness their capability to fundraise, increase public awareness in social innovation and scale their solutions for good social and/or environmental outcomes.
The grant focuses on solutions in five impact areas, namely community livelihood, food security, health and social wellbeing, environmental protection, and heritage preservation.