THE SMARTEST OWNERSHIP STRATEGY YOU’VE NEVER CONSIDERED

We all know it—education is the foundation of a thriving nation. Yet, South Africa continues to face a harsh truth: the government has not adequately delivered on the promise of quality education for the majority of our youth. And while that reality is sobering, it also presents a powerful opportunity for the private sector to step up—not just to give back, but to benefit too.

A Game-Changing B-BBEE Ownership Solution

What if we told you there’s a way to meaningfully uplift South African youth, support access to education and opportunity, and fulfil your B-BBEE ownership requirements—all at once?

Well, you can. And it’s simpler and more affordable than you might think.

By setting up an educational trust that benefits Black South African youth (as defined in the B-BBEE Codes of Good Practice), your business can earn substantial ownership points—without giving away actual shareholder control. It’s not just legal—it’s encouraged.

This is more than compliance. It’s transformation that works.

What Is an Educational Trust?

An educational trust is a legal structure established to support the education of beneficiaries—typically underprivileged youth or communities. When structured correctly under the B-BBEE framework, these trusts qualify for ownership points while directly supporting social development.

The trust must meet strict legal and governance requirements to qualify. That’s where we come in—to ensure every box is ticked, every form is filed, and every opportunity is unlocked.

How to Set One Up: The Legal Process Simplified

Creating a compliant and functional educational trust in South Africa involves several key legal steps:

1. Drafting the Trust Deed

   This foundational document outlines the purpose of the trust (education), names the trustees, and defines the beneficiaries—Black South African youth, including both male and female individuals from disadvantaged backgrounds. The deed also sets out how assets will be managed and distributed, and it must reflect a clear commitment to the objectives of B-BBEE.

2. Registering with the Master of the High Court

   This involves submitting the deed, completed application forms, trustee declarations, and ID documents. Trustees must formally accept their roles, and where applicable, an auditor must be appointed.

3. Declaration of Beneficiaries

   You must clearly state who the trust is designed to benefit. For an educational trust, this often includes groups of young people from underserved communities, especially where access to quality education is limited.

4. Supporting Documentation

   Certified identity documents, proof of business and residential addresses, and payment confirmations must all be compiled to complete the registration.

5. Registering with SARS

   Once the Master’s Office has issued the Letters of Authority, the trust must be registered with SARS for tax compliance. If it qualifies as a Public Benefit Organization (PBO), it may also enjoy tax exemption and issue Section 18A donation certificates to contributors.

Why It Works—For Your Business and the Country

• You earn B-BBEE Ownership Points while retaining shareholder control.

• You support education—the most effective form of empowerment.

• You create a lasting legacy—the trust continues to support youth for years to come.

• You reduce your B-BBEE expenditure compared to costly equity deals or complex structures.

• You align your brand with transformation and social impact, which matters to customers, investors, and employees.

What Makes It the "Cheapest and Most Impactful" Solution?

Unlike equity sales or joint ventures, educational trusts require a fraction of the cost—with far greater long-term impact. Your contributions are purpose-driven, and your points are fully compliant under the ownership element of the B-BBEE scorecard.

This isn't a loophole—it's a strategy for shared growth.

Ready to Make a Real Difference?

Whether you’re a large enterprise or a growing business, creating an educational trust is one of the most powerful tools at your disposal. At Compliance Hub Consulting, we specialize in helping companies establish fully compliant, impactful trusts from start to finish.

We’ll guide you through every step—from legal drafting and registration to governance setup and beneficiary alignment—ensuring full compliance with B-BBEE codes and South African law.

If you're ready to invest in the future—and be rewarded for it—let’s talk. Together, we can help you change lives, unlock ownership points, and build a better South Africa.