MaGIC offers tax incentives for contributions to social enterprises’ sustainability activities

October 16, 2020

KUALA LUMPUR (Oct 16): The Malaysian Global Innovation and Creativity Centre (MaGIC), which manages the Social Impact Matching (SIM) Grant, is now offering tax incentives on behalf of the government to those contributing towards social enterprises' crowdfunding activities that address social and environmental challenges.

In a statement, MaGIC said individuals, corporate or business donors of a successful SIM grantee may receive tax receipts of up to 10% of their aggregate income for cash contributions made between Aug 1, 2020 and July 31, 2021.

MaGIC chief executive officer (CEO) Dzuleira Abu Bakar said: “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 added: “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, [then] the public participate in supporting the development and expansion of the solution, and the government provides an incentive to spur the giving."

The SIM Grant, announced under the government’s National Economic Recovery Plan (PENJANA), aims to support local social enterprises and other social impact businesses to sustain their initiatives and programmes, harness their capabilities to raise funds, increase public awareness of social innovation, and scale their solutions for good social and environmental outcomes.

MaGIC said the grant focuses on solutions in five impact areas, namely community livelihoods, food security, health and social well-being, environmental protection and heritage preservation.

It said social enterprises, individuals or other organisations that use their business as a tool to create a sustainable, scalable and positive impact on society are eligible to apply for the SIM Grant.