Currently Fondation Joseph Lagesse is
88% dependent on CSR (Corporate Social Responsibility) funds coming from Mauritian profit-making companies.
CSR funds represent 2% of the profits made during previous financial year and are calculated after closure and audit of accounts. According to section 50L(2)(a) of Income tax Act, 50% of CSR funds are to be sent to the Mauritius Revenue Authority. For period 2018-2019, FJL receives 50% of CSR funds which is estimated to be around Rs 9 million.
Remaining 12% of annual FJL funds come from donations from individuals or companies, government contributions for the pre-primary school we run (Early Childhood Care and Education Authority) and a funded project by CADCA, a non-profit organisation expert in drug prevention programs in U.S.
In 2018-2019, Fondation Joseph Lagesse has had to reduce its programs and support to partner NGOs by 30% and has had to stop new funded initiatives to Mauritian non-profits because of new national regulations of CSR funds and loss of CSR funds.
The total annual budget of expenses for year 2018-2019 amounts to Rs 23 million. Education programs at FJL make for more than half of our organisation’s annual budget (Rs 13.3m). The remaining funds are divided amongst Community Development projects (Rs 6.4m), Projets Sourire et Projets de Proximité (Rs 1.6m), health initiatives and support (Rs 0.8m). We also fund a social housing program under Chemin Rail and Amaury Housing Ltd. and this year’s expenses are estimated at Rs 1,2m. Our administrative costs represent 12,8% of FJL total annual expenses and should total Rs 3 m this year.
As from January 1st, 2019, directly-available CSR funds for private funding of local initiatives will be limited to 25% of CSR funds, while 75% of CSR funds will be channelled to the Mauritius Revenue Authority for project funding through the National CSR Foundation. However, a mechanism has been set up to keep 25% of CSR funds for ongoing programs implemented by private foundations and companies prior to January 1st, 2019.
FJL receives donations from individuals and companies who are very loyal partners of the foundation.
Fundraising activities help the foundation create awareness of social issues in the corporate world, as well as bring financial support for specific activities. In 2017/18, fundraising activities of approximately Rs 60,000 (non-audited) help to fund a youth project and a health initiative for children at Bois Marchand.
Fondation Joseph Lagesse is engaged in sustainable, long-term collaborations for poverty reduction and community empowerment. Partners include Terre de Paix-Fondation pour l’enfance, Association Kinouété and Caritas.
Our funding policy is based on our core values: commitment, empowerment of vulnerable people, promotion of human dignity, respect.
We believe in evidence-based interventions: our programs are designed based on needs assessment exercises and set targets and goals.
The foundation follows the key intervention areas defined on a national basis by government, as well as the KPIs of Sustainable Development Goals, more particularly SDGs 1, 3, 4 and 11. We also encourage the involvement of the IBL Group’s team members in volunteer work throughout the year.
CSR funds represent 2% of the taxable profits made of the previous financial year and are calculated on the chargeable income submitted to the MRA. According to section 50L(2)(a) of Income tax Act 1995, as from 1 January 2017, 50% of CSR funds are remitted to the Mauritius Revenue Authority. Private Mauritian foundations can register as non-profit organisations at the National CSR Foundation and apply to the NCSRF Call for Project Proposals, in order to retrieve part of their initial sources of funding and be able to sustain their programs. The new CSR regulations are a major source of concern for organisations like Fondation Joseph Lagesse, which hires social workers and field workers, and is present at grass roots level for direct support to vulnerable populations.
More information can be found on: https://www.ncsrfoundation.org/wp-content/uploads/2017/06/Income-Tax-Act-Consolidated-pdf-Extract.pdf