Investors who want to dispose of these odd lots shares to neaten up their portfolios have been deterred by the cost of selling them. As a result, thousands of rands are tied up in assets that cost more to sell than they are worth, and portfolios are left in an untidy state.
SCS was created to address these small, unwanted South African listed shares by collecting them via investor donations of such shares, dematerialising the shares if necessary and have partner stockbrokers selling them on the JSE at no cost. The proceeds would be donated to a wide range of charities across South Africa.
To date, SCS has distributed in excess of seven million rand to a number of worthy causes. To encourage participation in SCS, The South African Revenue Service has agreed that the value of any shares donated may be deducted from taxable income, as the scheme is registered under section 18A of the Income Tax Act.
If you have any queries regarding obtaining or completing the forms, please call the Strate Charity Shares’ toll-free helpline on 0800 202 363 or +27 (0)11 870 8207 if you are phoning from outside South Africa. Alternatively, you can email charityshares [at] computershare.co.za.