Donations & Sponsorships Funding Policy & Guidelines

1. Background

Telecom Namibia is committed to the principles of corporate social responsibility and good corporate citizenship. Passionate, positive and undeniably woven into the fabric of the Namibian society, TN has established strong community ties through support of communities we serve and have provided corporate resources, since incorporation in 1992.

Telecom Namibia receives an increasing number of requests from individuals and organisations seeking donations and sponsorships for community and charitable causes. No uniform process for assessing such requests has been in place, resulting in inconsistency of financial allocations.

2. Definitions

Donations are cash or in-kind contributions made to organisations, schools or local community groups.

In-kind Donations are donations that do not involve a direct cash contribution but instead might include providing promotional items & other philanthropic grants.

Philanthropic Grants relate to those special community/area regional initiatives that invite the Company to give by way of a grant to a specific project. Such grants would be made on the basis that there would be no expectation of increasing the material gain (other than that related to corporate recognition, credibility and reputation) of the Company.

Sponsorships relate to opportunities that will in most cases offer a long-term association with a particular event or programme. In most cases sponsorships would allow the Company to develop a working relationship with the other party and to proactively participate to ensure maximum return on investment is achieved.

3. Purpose of the Policy

The purpose of this policy is to set forth guidelines and criteria governing the granting of TN's funds or in-kind donations and sponsorships for the purposes of supporting community-initiated events as well as from charitable organisations.

It should be noted that that this policy does not apply to sponsorships activities initiated by the Company for strategy marketing promotional purposes. The Donations and Sponsorships Policy is part of the Company's overall CSR Policy with the expressed purpose of demonstrating corporate social responsibility and good corporate citizenship in the communities in which the company operates.

4. Principles

Telecom Namibia will make provision in its annual budget for donations and sponsorships to individuals and community, charitable and sporting organisations to assist in raising funds for specific projects or to stage events. Only one donation or sponsorship allocation will be considered for any organisation or group in any financial year.

It shall be a condition of provision of a donation or sponsorship that TN's contribution be formally acknowledged in any publicity promoting the activity or project and the beneficiary shall enter into an agreement with TN and shall adhere to the terms and conditions therein.

5. Core Giving Areas

Through this programme, Telecom Namibia will support individuals, groups and organisations that operate in the following broad community sectors:

The Donations and Sponsorships Funding Policy and Guidelines will seek to achieve a balance between the above Core Giving Areas.

6. Criteria

All applications will be evaluate against predetermined criteria and with due regard to the value of the donation and/or sponsorship request. Also to ensure that the application fits within the Company's CSR objectives and the policy is applied with consistency, some exclusions are listed below together with application guidelines.

Sponsorships should complement the existing brand values of the Company, enhance its image and provide a platform to increase visibility for and project positive image of the Company. The Company's donation and event sponsorship allocations must reflect favourably on our reputation as a leading telecommunications service provider in Namibia.

Preference is given to groups and organisations/groups that:

7. Exclusions

As a general rule, TN will not consider support for the following:

8. Application Procedures

The process for making a request for donation or sponsorship funding is as follows.

1. Request for donation or sponsorship should be short and submitted in written form at least 60 days prior the scheduled project or event.

2. They should include the following:

3. Application for donation or sponsorship must be lodged in writing on attached pro-forma.

4. The Sponsorship Committee will consider application in accordance with the Company's current budget and the Principles and Criteria contained in this Policy.

5. The Sponsorship Committee may, if the application complies with the criteria contained within this Policy, approve sponsorship or payment of a donation in accordance with the above Principles and Criteria.

6. Senior Manager - Corporate Communications & Public Relations will report decisions made pursuant to this Policy to the next available Sponsorship Committee meeting.

9. General Powers, Duties & Operations of the Sponsorship Committee

1. The Sponsorship Committee is the delegated authority, subject to the conditions of this Policy and provision in the current Company budget to approve donations and sponsorships to individuals and organisations.

2. The members of the Sponsorship Committee shall be appointed from amongst the senior managers of the Company and shall consist of not less than four members.

3. The Senior Manager: Corporate Communications & Public Relations will act as Chair of the Sponsorship Committee, unless otherwise delegated.

4. The External Communications Practitioner, or any person so nominated by a member of the Sponsorship Committee, shall act as secretary or take minutes of Sponsorship Committee meetings.

5. The secretary shall minute the decisions of all meetings of the Sponsorship Committee, including recording the names of those present and in attendance. Minutes of Sponsorship Committee meetings shall be circulated promptly to all members of the Sponsorship Committee and, once agreed, to Executive Committee.

6. The quorum necessary for the transaction of business shall be three members. A duly convened meeting of the Sponsorship Committee at which a quorum is present shall be competent to exercise all or any of the authorities, powers and discretion vested in or exercisable by the Sponsorship Committee.

7. The Sponsorship Committee shall normally meet during the last week of the each month.

8. Ad-hoc meetings of the Sponsorship Committee shall be summoned by the secretary of the Sponsorship Committee, as necessary.

9. Notice of each meeting confirming the venue, time and date together with an agenda of items to be discussed and supporting papers shall be forwarded as necessary to each member of the Sponsorship Committee, or any other person required to attend.