Page 180 - Social Enterprise A New Business Paradigm for Thailand

corporate income tax. However, since foundations and associations are non-profit entities, even
when they engage in revenue-generating activities and are subject to taxation, the law provides

reduced tax rates and a distinct tax calculation method compared to for-profit companies and
legal partnerships (see Table 6.1).

Foundations that generate income to support their operations are classified as social enterprises.
However, some foundations cannot rely solely on product sales for revenue. For example, the
Healing Family Foundation depends on additional sources of support, such as the Fund for the
Promotion and Development of the Quality of Life of Persons with Disabilities, established under
the Persons with Disabilities Empowerment Act, B.E. 2550 127 (2007) (see Box 6.1).

Box 6.1 Healing Family Foundation

The Healing Family Foundation was established in 2005 by a group of parents of children with special
needs. The initiative began with a Japanese volunteer, who helped design a weaving loom that allowed
individuals with intellectual disabilities to weave fabric more easily and comfortably. Each piece of fabric
produced has its own unique and beautiful character, and the materials are transformed into various
products such as scarves, T-shirt accents, tablecloths, neckties, buttons, greeting cards, coasters, picture
frames, and more. In its early stages, the foundation received funding from the Japan International
Cooperation Agency (JICA).

Most of the foundation’s customers are visitors to “Baan Sanook,” the name of the foundation’s center,
as well as occasional corporate buyers. The weaving activities provide income for the intellectually
disabled individuals at Baan Sanook and generate revenue to support the foundation’s operations. The
foundation’s vision is to create a home where people with disabilities can live together without being a
burden to others, receiving only the necessary level of care and support.

The foundation’s financial situation is a key factor in determining the future of Baan Sanook. Currently,
it faces limitations in physical space and lacks staff with management and marketing expertise. Revenue
from product sales alone is insufficient to sustain its operations. In 2017, senior executives from Central
Group visited the foundation and decided to provide support through the mechanism outlined in
Section 35 of the Promotion and Development of the Quality of Life of Persons with Disabilities Act,
which allows businesses to outsource work to people with disabilities as an alternative to directly hiring
disabled employees or contributing to the Fund for the Promotion and Development of the Quality of
Life of Persons with Disabilities. This support provided income for the intellectually disabled individuals
at Baan Sanook and allowed the foundation to operate smoothly for a period. However, income from
this channel depends on the number and abilities of disabled participants and the volume of products

(b) Donations made for public benefit to charitable organizations or to hospitals and educational institutions other
than those mentioned in (a), as specified by the Minister in a notification published in the Government Gazette.
127 The Persons with Disabilities Empowerment Act, B.E. 2550 (2007), Section 35 stipulates that an employer or
business owner who does not hire persons with disabilities or does not contribute to the Fund for Empowerment of
Persons with Disabilities as required by law may instead provide concessions for the sale of goods or services,
subcontract work or services through special procedures, offer internships, provide equipment or assistive devices,
provide sign language interpreters, or offer other forms of assistance to persons with disabilities or their caregivers,
in accordance with the rules, procedures, and conditions set by the Committee in its regulations.
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