MaGIC’s SIM Grant For Businesses & Individuals With Social Impact
[This is a paid article with MaGIC.]
Social enterprises are growing slowly in Malaysia. In 2018, a study reported that there were 132 active social enterprises and 39% of them were located in KL.
According to MaGIC (Malaysia Global Innovation & Creativity Center), there are currently around 328 social enterprises active in Malaysia, thanks to the new mandates and support from the Malaysian government.
While the impact of social enterprises can be profound both economically and socially, they must first act like businesses.
In our previous interview with Dzuleira Abu Bakar, CEO of MaGIC, she highlighted a few areas that social enterprises need to focus on before they can have an impact.
In 2019, MaGIC launched the accreditation of social enterprises (SE.A) as part of their vocation to help social enterprises. This enabled 29 local social enterprises to be accredited, which provided them with benefits in the form of tax incentives and opportunities for growth.
And MaGIC’s support for social enterprises continues to grow.
Helping Impact Warriors in Malaysia
As part of the PENJANA initiative, MaGIC recently launched the “Social Impact Matching (SIM) Grant”. The grant gave MaGIC access to RM 10 million of government-provided funds to help growing social enterprises.
This time, social enterprises are not going to present or compete.
Instead, they are responsible for launch and succeed the crowdfund for projects or initiatives with innovative solutions focused on these five areas:
- Environmental protection
- Food safety
- Health and social welfare
- Community livelihoods
- Preservation of heritage
If the projects have been successful in going through successful crowdfunding, then MaGIC will match the crowdfunded funds at a ratio of 1: 1.
This means that if the project raises 100,000 RM during the crowdfunding, they might be eligible to receive up to 100,000 RM through the SIM grant managed by MaGIC if they go through the criteria check.
This brings the total of their crowdfunded funds to RM200k.
The funds received through the SIM grant differ. An accredited social enterprise can get up to RM500,000 in return for the grant. For unaccredited social enterprises or aspiring individuals / organizations looking to cultivate social innovation, they can get between RM20,000 and RM250,000 through the SIM grant.
Please note that the crowdfunding campaign should have a minimum target of RM 5,000. The matching funds will then enable those with a social / environmental mission to do more for their cause as well.
How to access crowdfunding opportunities
To avoid the hassle of finding a suitable crowdfunding site, MaGIC has partnered with 6 crowdfunding partners: GIVE.asia, LaunchGood, NGOhub, Sedunia, SimplyGiving and SocioBiz by Alliance Islamic Bank.
If you are planning to organize a crowdfunding campaign for your project, all you need to do is register on one or more platforms.
Note: MaGIC declared in their Faq that you can still opt for other legitimate means of crowdfunding, but it will be subject to the same checks of the SIM card eligibility criteria.
There are still terms and conditions for each platform, but what they can offer is a 20% platform fee discount if your project is approved for SIM Grant, but that’s only for the first million RM raised on each platform.
However, note that once you are successful 80% of the crowdfunding target, you can start your application process to get approval for the SIM grant.
“We want to cultivate ‘Do good’ as a new norm and help rebuild the livelihoods of communities that have been affected by the pandemic. We believe the grant will promote inclusive and responsible businesses that will have a positive impact on Malaysian society. “
Dzuleira Abu Bakar, CEO, MaGIC
Donors can get something out of it too
For those who have donated cash or cash, they are eligible for tax rebates also. But they can only be eligible if they have managed to raise at least 100,000 RM through crowdfunding and get their SIM grant application approved.
Upon approval of the SIM grant, MaGIC will request tax receipts which will then be sent to MOF (Ministry of Finance) for processing.
The applicant responsible for the campaign can then issue tax receipts to organizations and individuals who supported the campaign. This gives donors an added incentive to donate and ensure their money is funneled into lasting causes that create impact.
Do your part to create a positive impact
Even if you don’t have a social business project in mind, you can also help them by supporting crowdfunding campaigns or through MaGIC’s new “ Buy For Impact (BFI) ” movement.
BFI aims to cultivate socially conscious buying behavior among Malaysian shoppers by working closely with social enterprises and Lazada.
Social enterprises such as Komuniti Tukang Jahit, SevenTeaOne, Masala Wheels and APE Shop are now present on Lazada and you can buy their products there.
To help social enterprises through the process, Lazada will subsidize start-up costs and promote social enterprise products and services for free through marketing and advertising.
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“The purpose of the grant is not only to double the impact created by social enterprises, but also to encourage public participation by getting involved in providing solutions to society through their donations,” said said Dzuleira.
So if you have a social business project that you were intending to do and it touches on one of the five areas, now is a great time to do it. If your crowdfunding campaign is successful, then you will get additional funds to further help those in need.
- To learn more about the MaGIC SIM grant or to apply for it, register here.
- Buy BuyForImpact products here.
- Learn more about what we wrote about MaGIC here.
Featured Image Credit: MaGIC
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