Fssi 1996 Annual Report

FSS I

FOUNDATION

FOR A SUSTAINABLE

ANNUAL

REPORT

l:rvo

SOqIETY, INC.

FOUNDATION FOR A S USTAI NAB LE soclETY rNC. AN N UAL REPORT I 996

MFSSAGL THE

2

FOUNDATION

H lc HL-tGH_t0F

1996.,....,,..,.,................

PROJECTS AppROVED

.,......,,,..,.,.............

4 10

REPORT OF INDEPENDEN I CERTIFIED ....

16

POsITION,...,.,,

17

PUBL,C ACCOTJNTA\TS,.,,,,............. STA.IE M ENT oF F]NANCIAL

S T A T E M E N T O F A C T I VI T I E 5

1a

STATEMENT OF cASHFLOWs..,.........,,,.,..

19

NOTES TO FINANCIAL STATEMENTS.........

2O

GENERAL ASSEMBLY MEMBERS ,...,..,.......

24

MESSAGE Our first Iull year of operation.$'asir ilsclJ hll of fircts. SoDleoI lhase . The Foundation's Board of Trustees approvcd PhP 4r9,632,220 (USg 2.67 r llion) worth of fhancial assistanccto NGOS and Cooperalives as well as to Dri.ro, .ottage, and smal cnlarynsas. . Nnrcty-five percent (95%) of the assistanccwas 1n rhe form of loans, credit thes, guarantecs,and cqdty invcstnents. Only five pcrceni (5%) was h the forn of granls. .

FSSIis thc firct Philippire nrstitutnn k) p()vidc grarantee fa.ilities Ior . lricro and cotlage erlterprises.Mofe than onc-third (38%) of our assistance,or PhP 26,001),000 was 1lr the fornr of guaranlces. r Throrgh our guararrtecschc cs, l,cncficiarics and intprurcdiary organizations ran gain acc€sslo rrorc lhan PhP 75,000,000h additl(xlal rcsources.This wiU double thc fhancial tupd.i oF orLrRssistan(x,to NCOs, POs,cooperativcsand.ornDlunily cntorprlses.

. Alon8 wilh o1lrpartner-orta izations,FSSIis proa.tivcly dcvolofing ecosyslcrr-based enk .pr.iso olodcls for thc upland, (ropldnd, .oastal, and urban areas.ThcsoDrod€lsshall,hopefuliy,htoUra!o(lrodI dclivory, tcchnologk:alinnoval.rcn, L:apabilty-buildinS, cntcrprcnourjaL dcvclopurcnt/and harketinS systi"Drs k) prod(cc c(tDomi(:alLy viablc,c(ologically so(nd, com lrlity-Lrdsedsustainabloenterpriscs. . Evcr afk r pfovidiDfilho abovcassisiarccr afld spondinElor proSrarrs and opcratiorls, o11rtotal asscls havc gfown lrorn tho origjrlal ( alitaL of PhP454,822,597 in Scptcrrber1995LoPhP 503,818,859 in assoLs ar Lhoond oI Dccember'1996. It has becll quite a yaar. I wor d liko io tlunk my fellow Trustccs,the Foundationstaft,tho GeDerat Merrbarship, the Philippinc Covernrnont lhrough rho D€tar.!moit or Fnran.e,and thc SwissCor oderallonthrough ils Eml,dssyan.l irs Fcdordl Offi(e for Foroi$r Econoni( Affairs for thctu coniirruillB ftDrrrrii1rlonrto rl.rc, econonic eDfo$,emont of ot1l rural and urban poor. Spe(:iatlhanks go r(, the Swiss Colrlitior of Dcvelopnrent Organizarions whose advocacy and solidarity spaw,red thc Iounda!ion's cndowDrenr. Mosi of all, wc thank olu par.tllers/ whosc nitiativcs,idoas, lhis erltlowlnenl a11.1its wort}whiie use possiLlle.

and idoals Drake

Mk*"r**7,1-+-t Chairper3on Board of Trustee6

STATEMENT

OF ACTIVITIES

FoR THE YEAR ENDED DECEMBER 3 I .1 996

Income from funds held in hu6t

PhP30,712155.00 26,600,308.00 PhP57,3L7 463.OO

Provision for d€cline in markei value ol inveslnenrs Pioject Grants (Note 7) Salariesand wages

4,331,220.40 2939,150.m 1,905,850.00 529,945.00 477,668.00 432,237.OO 401,258,00 382,155.00 250,553.00 799,454.44 1s9,642.40 158,519.00 753,727.00 702,575.00 59,352.00 55,497.OO 43,000.00 31,600.00 16,987.00 16,880.00 85,500.00 PhP72,732;175,00

M€etings Triwol

r n.l

F,nnl^vao<'

16n.n^rriii^n hanof

.

Offlcesupplies

Bank charges Utilities Staff developmeflt Booksand referencemat€rial8 Re$t

Exc6s of Income over Expenses Accunulated Savints, BeAinning Ac(u'nllated Savi Bs, End Se€Notes to Inrancial Stat€menLs.

t

44,585,288,00 2,74t,293,0O PhP47,326,581,00

STATEMENT

OF CASHFLO\iVS

FOR THE YEAR ENOED DECEMBER 31,1996

Operating A.tivitieg Excessof incoffe over expenses Adjustmenis to .econcile ex.ess of income over expensesto net .ash provided byoperating activitie6: P.ovision for decline in narket valu€ of invesrm€nls Iftrrease (decrease)du€ to change nrl Loans receivables-Projecis Accrued nltercst receivablcs Advallces to officeis aid empioyees Pioiect graraniees Prepaid oxpenses Othc. current asscts Accofirts payable a d acoued expenses Olher cur.cnt liabilities

lnvesti g Activitieg Frnds held in tr st Acq!'isitionot prop€rtyand cqujpnent

N€t Declease in Carh and Cash Eqrivalenrs Cash atrd Cash Equivaienis Balance,Beginning Cash and Cash Equivaletrts Balance/ End sec Notes ta linanclal Statcnients,

PhP44,581288.00

4,331,220.00 132,237.OO (4,519,891.00) (17s,961.00) (584,694.00) (1,200,000.00) Q75,6AA.AA) 94,500.00 112,000.00 1,456,083.00 PhP44,355,182.00

(157,717,198.A0) (10,081,093.00) $67,798291.00) (123,443,109.00) 137,375,603.AA PhP L3t932,494.00

HIGHLIGHTS

OF I996

iscal Year 1996 marked the slarl of FSSI'sfull-blown operatlons towards its nlissian oI serving as a resoucc nrs[trtion for lhe econooric errlpowerment of organized marghal rural and urban cortnrurities in the Philippines. Thc year was highlighted by thc estdl'lish ent of thc Fo{ndation's office, staff fe.ruilnent, exlcnsivo propagatk)n of thP forndaik)n's guidchles anrong target bencfi(iariesand scrceningand approvalof tho initial balch of proiects. During tha year, oLltwith thf Bodrdof Trrslccs dlso (rdDre rlrlior decisions regarding rrechanisDlsanred assislanccto the Fot111dation's al cnhanciLrg {1)ttagcand smal1 antcrprises, Offi.e E6tablishtnert.Pursuanito a Board clocisioni)r thc cslablishmcntof ihe offi(:o.a houscand k)l locaLed Fornda!ior1's dl Sdular Ave. in Quczon City was pffcllascd '1996. lhc lay-oul oI thc t)n l-1Fcbr!ary ljurlclin8, whl(h was thflr urdcr co strllciion/ w!r$rcvisad in a((r)rdancowith a dcsi811 sugl},siedLy ihc Boardof Tr!stecs. Whil€ awaiting ihe.(,mplollon of ronstru.iion arrdfinishing u.tivilies, FSSI teDrporarily rented a room at lhc offi(e oI lhe Philipphes Canada Dcvelopmenl ProSran io servoas 'is oPerations l)dse.The truildingwas finishcdin rnid-Atril. Staff Recruitm€nt. Anolher lnajor.oncerl1 during lhc start oI lhe ycar was ro recrrlr qUalilied individuals lo sta{I lhe Foundation.

After a three-norlh search which began tn th€ third quarter of 1995, the Board oI Truslees appointed Mr. Eugedo M. Conzalcs as lhe Exe.utlve Director oI FSSI.Mr. Conzales, who was also involvcd as consultan! in the dasign and negotiation of the debt .onversion thal led to the Foundation's cstablishnent, began his term on 1 FeLrr(ary 1996. Also apponrtedwas Mr. Jun Atienzaas AssocialeExe.utive Direcbr. Mr. Atienrd hasmorc than a de.adeof experienrein dHv,l,,fnrentJl6rdnt-irJli,rt thruLrthh;- lonl c\pcfl",r, r i,r \UflM,ss,un.,r,r or8Jn,,/rt,,'n bascdin the United States. He assunredlris post wilh FSS1in lrlid-Februaryl996. Recr(itfient for tho reDraiuinslivc positidrs o((:t|piodthe monl)$ of March and April. Scrccni g of appli(:antswas done with th,. assisia ce oFthe PhilippineBusinessfof SocialProBrcssand sonromcnrbersof thc Board, By lhe md of April, the {(11stall conrpleDreni oJ sevenpersonswas alreadl Othcr rccluited stafl wcrci 'Iorlcs, Ricarclo Jr. (Sc or Pro?,ra Officer)r Rdchel ReyesSoscon(Pro8ra olriccr), Cocilia Elauria-Roblos(Fino ce and Ad inistrationManager), Avelina Lagnray (Admhistrative Assislant), and Virgilio Ninler (Driver/ Messenger). Pl1blic-Inf onnation Drive. Towards lhe cDd oI tho Iirsi qrarlcr, lhc loundation la{nchad a?ublic nrforDratior drive regarding FSSIand ils services.More than l,(100 copies of the Fourldation's guidelhes were disrriL{led anong various NCOS, POs and

cooperatives throrghour,the country. In addftio& the Executive Director and rhe Associate Executive Director have attended a number of NGO meetings, workshops and conJ€rencasto nrhoduce rhe foundation and ts services as well as to oblain inJormation and id€as for program plannnrg antt

During the second qudrrer, meetings with cooperatives and NGOS were held nationwidc to gather and discues potcntial collaboratiorr i1 innovarive financ'n& ri(c LradinBanLlorherac(ivitr.s. Likewise, more briefings in the diffcrer.rt islalrd-regions were held to explain in more detail thc FSSIglidelincs and processeslor proiect appraisal ard developncrt. The aggre6siveinlofinariy'n drive undertakcn rcsulted in Lhe.subDrisso{r of nrore than 70 proposals to tho foundation during th€ yoar. Se(ond ceneml Assellrbly.Thc pounJaho held its znd ceneral AsseDrblyon 22 April 1996in Quezon City.

The stalf were inrroduced to rhe general Drcmbe$hip. Reporls and presentarioN on th€ activities and operations of rh€ werc_ordde.Mor. rbf,orLJnLty. 1.,,"1,,,"1 rne roresor lY)embercand membership policics were clarilied and a naw set of Board.oJTru6teeswas elected, A major an]elldnlcntwas ]rradcin the FSSIl.y_law! whi('ll incrcasedthe numherof elected tru$tccs to sevon, The following were elccted to the Fouhdation's Boardr

Chairpercan

Ex-ofiua Mcntbets

r v r d ,A t L r o r a I o l e n l i n r )

(PBSP) SalvacionBulatao (EDCS) MarlencRamirez (PHILDHRRA) RenroCesu (HELVETAS-Phils.) JocelynCabo (PHtLSSA) Terositadc L€on (NATCCO) Martin Tanchuling (NCO,CCD) SwissEnrbassy DeparhnentoI Finarlce

s o c , E r x , N ct o a N N U A

MAJOR

DECISIONS

OF THE

BOARD O N B Y E N T E F P R ] S E , 19 9 6

Psie.ts. During the fiscal year, the Board of Trusteesapproved a total of 18 projects dDrounling to PhP 69.63nillion. The Iollowmg tablc shows the tund alocation a..ordnrg to the type of assistanceprovided k)r theseprojects:

AsSISTANCE

PESOS

Credit l-ine

3,487,6sO 5.00 11,343,s7O 20.61 800.000 1.15 2t000,000 37.34 25,000,000 35.90

Tolal

69,63't,224 100

Grants

Equity

I0 addition,six projcctsalno!1nlingk) PhP19,{,{)00 were apFroved flrdcr the Fot|r)daiion's Small Crants Facility.

N L ] M B E RA N O ' T Y F E O F E N ' T E F F R ] S E

RIBUYION,I996

ENTEPRISE'fYPE

NCR

NAT ONW]DE TOTAL

95

s6sHlnJiN TOTAL FSS|

'1Y."".NIi A l t fi \ r r l t u r a l p r c d u c t i o n , tuassing, trading 1.. udifg livesto(k Utland Ljvdihood

0 I

UO

0

00

Servnls (transport,

39

0

161 211

U

001

64

1

004

224

Consultativ{:/Brsiness 'lotnl ]].rttrt l)isttib tit)lt of

7 39Y.

i \ r i . r t s h n t . i 1 1t o t r l F S S I 1 1 y ,

1

3,1 17% 22%

2 71%

2 r1,%

2%

2%

37v,

11%

M-Mt\DaNao

NCR-Nnr

11

33

5

0.1

18

jNAL captraL

100 100

RLcraN

TNSTRUMENT.FSSl,l996

Guarantee Schemes.To complement the $ants and Ioans it providcs, FSSI set up various guaranteeschenes to leveragc additiotal tunds for nicro, cottage as wel1 as small

Among such schemesis the guaranlcc deposit facility for rural balks which encouragesrffal banks to go inlo micro lending and other innovalive credit sche es lor poveriy alleviation.

OF INVESYMEN'I'IO FARTNERJ

F5S1,1996

Through this s.hene, FSSIprovided a guarantee frnd of PhPl ll1i1ltonto the New Rural Bank oI San Leonardo, N eva Ecija for iis rnicro-lendini; and land redeftption prograDrs. l'he hatk was chosen as lhe Iircl nrternr-"diary under the schemebecauseoI ils micro leLlding track record and cxpertise, high !epayoreAt rates ovcr the pa$L years/ in ovalivc approachesand il.s sound financial positbn. Bccalrsothe bank and its bran(:hesaro ir a lillh classfiunicipality/ it can activcly readl out to Fovcrty groups. Another scheDrep(t in place was th{r G11araflLec Faciljly for Cottdt]c alrd Sriall Enterprises. The Bankcrs Associatio[ of the Phillpphe'J Credit Cuaranty Corporation (BCGC), an ilstitution astablishedby the counlry's conrmercial banks lo perform lendnrg functjons to slrlall and mediuDr scalo anlerprises, was chosen as irteImediary. Wilh lhe PhP25nilljoD g araiiee fund provided by FSSI1llder this sche €, BCGC can expand jts lendnlg to cottage, snall and Drediuln enterpdscs by an additional PhP75rnillion.

Small Grants Fncility. FSSIguidelhes requn€ a rninnnun funding reqllest of PhPl lnillion lor proposals to be eligible for assistance. Du ng the fiscal year however, FSSIr€ceived a n11nlberof proposals for trojects which had a high potential lor firture lcnding or investment but which did not mrct the lllinillrum Iundhg requjrernent. B.cause oI lhis, the FSSIBoard of Tr(stees approved lhe establishrcnt of a sDrall grants facilily iD its 27 Au$1st meetnrg lo respond k, such proposals.

gTRATEGIC FRAMEWORK

Givcn the potentials and limits of the Fouldation's humai, fhancial and social e5 | qSTh^pp
DeaelapmentoJlttodelsa1ld"winners" thal throltgh rutximize impact across ecosystems c actixi ti es difler enL econotni Among such nodels idenlified was s11stainable agricuhure beca(se of its poiential hrpact on Forest ecosysteDls/coastal arld oratlne ecosysreDrs/uroan ecdsystemsandcropland

A( tiviiies eligible for 8rdrlls u dcr lhc facilily arc plcleasibility slr1dics,tcchnical training/(onferciaosand assisLancc, workshops, awards for cxccllancoin on J , - r ' . n r o h k d t o \ u r t r i n J h l cf r , ' d u . ' t i' n . c n J u L l . r' < r r o i - t c r Dd". L r \r t r o st h a t, J n h e l p h u i l L l i . . d p d r i t y. l n r . p o r ' , , 1 \l u ' f t J t ^ , , , sustarrable prod11cllonProjeets. Eligil,le organizatnDs are NGOS, POs, (oopc.rativesand other stu lar organizations wilh at loas!one year track recordand an inlcntion io go inlo proiects nr srctainabl.

of assisiancep€r project should The amo111rt nol cxceeLlPhP50,000.The facilily has an ann[al budget of PhPl million.

"...".

".""^.,"""o

In linc with this, lhc dcvcloFmcnt and prodrcii0rl of orgaric Icrtilizers, scen as a Drajorrrrpul to sustainable agricdtffc, was aggrcssivdy plrshedand supportedby the Fo(ndaLion. Twoprojecls that iLlteBrate technological, l'inanciaiand [rarketing support to organic fcriilizer prodrctior and sustairiable agrictlLt(rewere afproved in 1995. On the output $ideof sustainableagric! tuc, FSSIhas been providing slrpporl for coopcraiivos, h.hich aro saoi as poiential ,iarkethg networks for agricdlural products partic! arly organic rice, fruils, and vegetables. Bltild Faltnerchipswith key plavercwho c!:tu s h p p l , ant t o n t p l e m , aotr b r t t r ti t p L n L c u t the Fou11 dnLion's setL) i ces During the year, corcept papers wcrc shared and inilial conlacts tllade with other fuDdnrg ard lendirg n$tihrtions such as the Foundation for the Philipphc Environment/

F o R a s u s r A , N A B L Es o c , E r y

Leagueof Corporate Foundatiors, and rhe Banke$ Associarion of the Philipptues Credir Guaranty Corporarion (BCGC). Likewise, a number of borrowers are conside.ed as potenriat key partners for specific

. lnfiapateuith new . instnt lents and insli.lttti.on< lltat cantaspanJto lttc.tMry;ng needsof bentfic iaties A guaranie€ depos facility for rural banks and si1nilar irlstituliols was dcveloDed. Towards the €nd of the fiscal year, a phpr orillion deposit ftoDr the Foundation wanacle at thc Ncw R(ral Bank ot San. Lconardo, Nueva EciJa. TIle Foundation ajso received a proposal Iroll1 thc BCCC on a guaranty fllfld for 6ma1] cnn'rFri,,!'s. Such pr,,posal Idrcr rcsuIk,Llrn

the sethrg rp of a php25 million guarantec funrt h:,r snrall and cortage erterprrces la, h rhe BCGC. The fund witl erable the BCCC io cxpand its lending proSram tor smatl and coltage enrerpdses by PhP75miition

I-OOKING AHEAD

With tha fiflalizarion oI thc Foundatio|,s stratcgic plan durjng thc y€ar, FSSIsces rrs h J n J sI L r l lw j t h r h cJ . v f t , , p I n , n rJ n d p i t . ..lt or_1)1o.l€ts (sustainahlcdSri(L tL1r"anJ otlrers)and ncw irrctrrLolenls ds weli as developurglirrkagesw,th foL"nLrclkcy tarhr€rs. This strdll he lollowcd by ari ,rsspssmcnt oI thc pilor phas!. th. rcsLrlt6.,f whlch-willlorot the base6f,,r thc finp_!ll,uIl; and full iDrplcDlentationof crltcrpr.isc nrodols ard financial instrunren; in thc ncxt

PROJECTS APPROVED l) Nrtianal St\dy Canfercnceolr SLlstaitlable Fi\rn.i Slat the Poal T h e p r o j e . t s e e k st o l : o n s o l i d a t es o m e sifllili.ant exfericn.cs of PhiliPpnreNCOs, POs and cooperativeslowards the generation o f f o l i . y r c c o o 1 l l l e n d a t l ( ) r l sf o r i h c govcrnDlenl, Ihan{e sector and ihc NCO/ PO/Coofcralive conrnunity on lhc manaiteDroni and delivery of fhancial serviccsto tlre Poo1.

I]SSIappft)veda granl amoLrrlingto thc f|,()jedwith PhP50,000Ior HEl..VElAS, SWISSCONTACTand SNV provi(lrrrg.ldclitionalsnttort 'l'ha of PhP150,(l(r0. projocl is bfnrg , I n r n L f r n f f t , J l , v t h , C u n c , r so I

The project aims to dcierurine, through a feasibilitt study, rhc l1larke&1g,financiaL te.hnk:dl ard organizalional requn e erts of a sustain.lblccxport ventlrfe for aquafiuDl fish gathcrcrs.Another Drajor.onrponeft of lhc proje.t is an assessnlcntof tha i1airi11g n A J \ . f J q , , J n , , , ,f,r . l r[ . r t l r ' r - r ' - r r . l . h , r $,iv€sh sustahabldresoun e DranageDert.

) )

FSSIprovicled a granl oI PhP369,150Ior ihe conduct of the stlrdy. Prole(l sites 1rn:lud--

':WW I

il

l)fvciopnroni NCO Nclwolks, thc oi dovoloImout hflt('sl (odLitn)Lr N C O si n t h c P h i l i f f i n o st o d a y . " l h o sLudr vrill I'c tr1ous|r]in l\4ar.rlt t997. Lit)ulihaad 2) Stlstri)nbtu far Iislt Colhclots AqtLt'iIIttl l n L h ap a s i , i h e p f r ) p o r t n t , t h o H A R I B O N FotLndaLnxr I'(n thc Consorvalion of NailLral R o s ( ) r L r . e ps f o v i d c d i n i l i d l a s s i s l - n n . et o a n r n v i r o n n r e n r f c t l c l l y a q u a r i ' r D rI i s h llaiholing venture ol th. Podorasvonnf, Mg.r nB Pilipnras (Fcdcrat(xr of l\1iB-Aal(w'aryu C o llertors of lha Philippines). AqL,ariunrFish T h c N G O l r a l n e d f c d e f a t i o n u r c n r b e f st o u s c neis nslcad ot r ]aniLle h) gaLherfish. Ihe asslsidn,eenabL..l thc Fcdcraliur to ndkc " tu$ shpflcfts of aquarirmr fish to a Can,LlLrn\CO, lhc O.ear Voice lnl..rnatiolal. Wjth the growing denland lor ,ddiiional shitDrents, the HARIBON ilnd the FeJ.r.riion now have to translornr aquan!L11r Iish gathernrg rnio a scdous Lrusincss

Bolnuo in Pangasrnan, Nalipean in B"rl.rnSos anlt Sar Sdlvddorlsldndnr Za balos. 3) Fattulntia oJAll Islutld-WideLiLiclillood Dclteloflne t Plttn.far SanSaltwdorlslLtttd Thc projccl,wlich is alsobeuS inrtleDrentcd b) the HARTBONFonD(laln)rr for thc Consorvahonof Natl,rrl Resonr.essecks!o iorrrrulati, a .om f rchonsivc livclihood dovolopmcnl proilrdrrr for Srn Salvador lsland in \'lasinloc, ZaDrtralcs. Thc island is.r show.aseof i:ommuDity-basc.1 krrour.e .onsol\,ationand managenent. Establishcd nl 1989 as a tl1adnc sanctlary, all

.,

\i

iorns of destruclive iishiug practi( es, €.g. d\ramitc, cyanide iishm& etc. have bcen lotally curbed. Fish .ah h has gone ba.k to its prcviouslcv-ol ..,nairs protectedby rrganization in thc lsLand. Aside ftorrr l1sh,SanSatvador alsoproducosricc

Populaltongrowth rate oI ihfee (3) terccnt and the increasirrgc()noDrkj activily llr the Dldnrldnd are lx,gimrnrg ro pur prcsstlr.o ()n thc island'sreso!r(cs. Thus, lh!'n.(,d to develof d romFrohcnsiv0livclihood dovoloFnr{lLrt proiyd n. sf.fif|( obj(.(ltiv0s of !h0 proiocl .,r.r io stren8thcnthc ncoplo,s orr! nizdtion's(:rFa(:ityLohandlo lr! olihoodand srrall-scaie , ntc.rpr.isodoveiopDrorr proic(ts; .\ploro ways oFcxpandingrhe .\isting.(x)pornrivoservi.es; ,'nd, to devotopa managemont s.heme lor l.helivelihood inrtle erltaLior. ProSranr's The projcct reccived a granr a1}1ounlin,{ro PhP310,950fr(, Dr FSS1. .l) LLpsc|lingflte Prad ction atLdMa.tpLtry ol MASIPAGRi.. lDrplc reLrtcdand nranagedtry rhe Kaanib Foundarion, Inc. (KFI), rhe froj-{ r aims I . \ d b l r \ l r n r o . l l , r r ^ . r_ r J D r J r l n r | r Dt.- J i n hrr ihc MASIPAC dce variety in Bukidnon and organize Dranagenren!and te(t .al sup?ort b Dlanrtanl the cfficicnt operatior of

A loan oI PhP 2.5 million was granred by FSSIto KFI to se.ve parrly as producljon inpur ard nainly as se€ci capital for the procuenent aid narkchlg of MASIPAG dc-" va.ier),. A grart of PhP319,000.00is being usccjfor fte condu(.t of rraining and odc,rrla[io11 lo at lcast 18 peopl€'sorganizarions seeknlg to pur up tleir own MASI],AG riee production and markeringchain. Aside fron enahhrg KFI ro set rp a Dusmesscenterto inrprovc its capacity for self-rcliarce, rhc projec! is atsi) expe.ted to hrthcr fromore susianrable agri(ullure n1 ar least s-.ven municipaiitics in Bukidnon.

5) PDLiert!AlleL)itlLion Tbaugh S stni lble AgricjLltafnlPfnd Ctio (Foc|s a Catltc Fitlteniflg) Ihe proie( r, which js bejng r]landgcctby rllc Certre for Altenarive R11ralrechrn)lory (CART)-Cagayande Oio City, aims r(i provido ar opporhrnity to increasetho tucoue of hors-"hotds engagedln cartlo fattening. Under thc rroject, CART witl use thc pht,j.2 mrllr,'nil borrow.d fru.,r fssl r,r d, LI Ie rurl h F d d \o r . a L I I F\ ^h , ,h w i X t . ed , - p o r * J , , . . ,

.-

Lodnto 5l) beneficiary-hotseholds belonging to iU orsaiiza&)ns The Provisnn of s{ch hvelfio;d facilily is exPectedto assist 50 houschotcisk, in.rease their nlcorne by 40 Dcr.olrt jlr threc veals At lcast 450 the iro.sehol.ls are expected to bencfit from loan fa.ilitY in threc Years in grantsshallbe used Anothcr PhP300,000 in acrivilies ained a! Pro ornrg stslainable dsrir lture a ong 15 organizations in sevcrl ,;nn u tias in B*idnon, social rnf f astru.iure develolmellt a|d erhancing ihc i.]rbrPriseLiaseof 15 co Druniiieswithnr L h . f r . r . r . " . . ' r l' t . L r - l r u r d h l"'6 r i ' u l t L r i q ar|Ltl1i. Fertilitcr DcPalolmektand ZLlt baLes FLltt Rchdbilitnlian 'I

h , ' , r . - J . ! rf n , l r . t ' l r h " S t A t r g L r \ t r r c Area ManaUcrrentBankingand Sdmb,rlt's lull Livclilloo.llis!ilut(r seeksto: a) clcvelop ior hlo\\'npfo.luclionarrdolarkelingPlrrns ( onrnru nitv bas0dorgonicferlilizcr p|o.luctnrn;h) irnProvcthc ic(ini(lal skills dnd froJui(15 in u,rJ .r" rrnnt.- .'f f;rr:11'rs of olganic fcrijlizer; the rsc and prodacLi()n roncu r ial skills of the crrltrcp all.l, c) rurprove pursue orSanlc will POs u clorSASFIwho (,'rlilizoffrodndicrrl as aLrclllerprrsc' tur A qrdnt oI PhP807,800was rnade by FSSI the of aciiviuesrelntedto ttre dcvelopnrcnt irr ihrac Produ.lion and arkcting Plalls Zn|rbales and tho rdp.rhiljlYand brildlnS .orllPonents of thc adLliUorul I'jhP20{),000ir loar was.tlso Provided io scrvc a5 a (redrt s L r F n o r tt o o r g a n i c tcrtiliTPr

7) Caopentioel&oiesale BusineEs Through lhe Project, the Misamis OrientalCagayan de Oro CiLYFederatioi ot Coo?erativcs, aims to provide cheaper consumer goods to 46 ?rinary cooPeratlves through a wholcsale-retail blrshess A PhPl Driliion loan from the FSSI will provide additional capilal o11llaY for lhe cstablish ent oI such venturc whi.h

by 20percMt

Likcwisc, thc of io lea,lto thc cxpansionoI thc nTembership lhc fedcration as well as to the financial stahiliiy of iho mcnber cooPorativos

8)E telfriseDertelofnt.t far Lok-CastEco-Sfulter: F.asibility StLtdll Thc projcft whn h was proposedbY thc Harnessnrg oI Self Raliant hitiaiives and Knowledse(HASIK) is ir'I response to the inadequacyof shelter plovisions for urban poor cornmuniiies a d workers devclop111ent

In addition to th€ loary FSSIalso approved a grant of PhP220,000for kandng related to the palay buynlg proiect of TMPC for one year. 10) WometLOperatinsa Trunsport ScloiceThroughlhe Caopelative

HASIK and its partners, DACY Architects and Plarrnersand Huolan DimeDsion Enterpdses, intend to establish an enterpri6e which will explore the possibiiity oI providing a nlore attractive altcmative to crllent resettleircrt options, In line with thi6/ bw-co6t horcing nodols aimed at irrprovinS the qrality of the livinS conditions of the poor 6ha11be developcd and tcstod. The PhP 712000 grant provided by FSSI covered the first pha6e oI tho project, the corsiruction oI a prototype afld the conduct of a leasibility 6!&dy to assessthe viability of tlle ploject as well a6 to deterDilrc the organizational rcqrrirerneLrts oI thi Eltterpnsc rhat wrll bc tdskeclto rnpl&nre t the F(oShelter Prolect, 9) Palay-Buyil1gPr aject The projecl aiDls !o uplilt the socio-econonic conditior of the farnler-ll1ambersoI Tag(djn Multipurpose Cooperative through rhe provision of a ready arket for palay and other farn produce. In line with this, a loan anourtnrS b Php2.5 milion was approved by FSSIio expand the cooperative's palay buyl1rg/rice narketing program. fhe furrd:hdil b,, ucedds sped capital to buy and store enough rice supply for its members as well as sell to other cooperatives in Ilocos Sui, Abra, Baguio Cfty and Manila.

The transport bushess js traditionally perceived as a "male-dotllinared activity." Tlrough the proiect, the me)nbers of the Maligaya Women's Multipulpose Cooperative, aim !o disprove such perceptior by slownlg their skills and managerial capabilftes in op€rating a transport bruiness. A lonr of PhP966,970Iao FSSIwas used for the acquisition of two urdts of Toyota Tafiaraw FX taxicabs. Th€ venture not only ganerqtesadditional incone lor the cooperative and its ircmbero but also provides a non-traditionaI for:I of omployirent/inco e-generatingactivity l()r 601110 of its irombero (or their fami]ies) who are taken ifl as drivers, Likewise, the units also serve as service velliclc lor the cooperative duirg i[rportant activities related to th€ conduct oI its oPeratrolls. '11 ) Bfidge Loahfor a CothmunityFareslry Prajecl in NegrasOccidental This proieci oI the Broad Inftiarives for Negros Development (BIND) airrs to build the social and physical hlaastlucLure rhat will onable a people's orga zation to sustainably malage a comrunity for€srry progianl. Components of the projecrs irrclrrd€the conduct of a loresr resource nrventory lormulation of a comm111lity torestry manaSementplan, sertirrg up of , o D r D r u r r i te) d r r r i | l,Ue r r t p rds n d . i n a n . I g ^ f putllp prinhg acri\rities of LhePO. BIND was originally contracred by the Deparhnent oI Environment alld Narural

Resources(DENR) to projed. With the fa 11Ieof ihe latter to provide thc agreed upon lunds despiic the

reqrirements, BIND decided to pursue Iiotwithstandhg ihe problcns with DENR. Thus,BIND requasLcd Ior a loan of PhP380,000,which '\,ds approved by FSSIifl July 1996, to fund th-"nrr cdiate irrplenenlation oI the f roject's long-dclayad cdticai activitie6. Srppart to the Margiftal 12) DeL,eLalklent FatmetsaI Bafthgd! GenetuIClimaco KAKASAKA"SUgbds projecl is airned at incrcasjng the incoDe of farmer-nrembersol a cooperalivc by providing necessary support facilitie$ such as farnl prod(ction orluipDrerltard credit. ln linc wiih tllis, a loan oI PhP900,000from FSSIwas partly tlscd lor Lhe pur(haseol tbreeharld tractor unils which were then nadc accessibleto Iarnlerc. Also purchasod frotl tl,c loan was a lhroc-torlller truck lo Iacilitate lhe cooperativa's wholesale arketirg activities to and fto Ceb! Cily. Part of the loan was allocated as a.start-up capilal to the .oopcraiivc h lha purchase of farrn products froDr its farlller members at better pdces. To co]rrplementthese, FSSIalso provided a PhP282,300granl for

capability building activities of members and potential members oI

13) Silang WasteManaSenentPrograin This project ofthe Institute for the Development of Educational anrl Ecological Altematives, Irc. oDEAS) centers arollnd generathg turther awarenesso1renvironncntal preseNation thlough waste segregation, recyclin& processhg and organic fertilizer markethg. The major components of the proiect include: a) environmental edrcation and irfornatior campaign; b) waste segrcgation and collection; c) setting

up oI an NGO-rna1taged nl11nicipal procesging centerfor urban biodegradablewastein 5,lanB,CavLl.e: dnd d) inshtutionhurldhEfor an environmentai(x)rporation/waste management organizationin the rrunicipality. A loan of PhP2.2rrillion was grarted for the procurernentand cstabljshnentof facilitiesin co llcction with the wastccollectionand processilrgactivil.iesunder tlle protect. An additionalPhP800,000 ir equity was also provided to serveas working capital. Likewise,a Brantof PhP200,000, which is also

converbibleinto additiondleqdty, wds approved for capabfity and institutionIrdlding activities. 74) GuafanteeSchefiesand.Credit Lifles Thr€e of th€ proiects approved durnrg the year involved the setting up of gsarant€e schemesand cre&t 1i e6for 6malland cottageent€rprisesand cooperatives. Ffst among theseis th€ Guara[tee Furd for Lana Redemption and Micro Enterpris€ with the New Rulal Bark of SanL€onardo in Nueva Eciia as the int€rmediary. The Suaranteefirnd amounted to PhPl lllifton, Another Guarartee Furd for Small and Cottag€Enterprfueswas set-rp in Decembet 1996with the Bal*ers Associationof tho PhilippinesCredttGuarantyCorporatiorlas the intermediary. The guaranteefund of PhP25million traflslates into ar additioflal PhP75mfion available for lending to 6mall and cottageenterprises. A credit line of PhP25rnillion for rice tradilg by Mindanaocooperatives was ako approved

LayaMananghaya Salgado& Co.

p hI E u i l d i . g 3 / FC h e m

Coqpers& LybrandInternational

r " l c P oB o r N o . 3 4 a 3

pubicaccountants cedined & manager.ent consuhams L e g a s pvi r l a g e ,[ 4 a k a t ]

ierepnone(63-? a1a 9492 492 32.t1 44101a1 (53-2)a16 6595 a\7 L426

RIPORT OF IIIDEPENDENI CERTIFIED PUBLIC ACCOLI}.ITANTS The BoardofTrustees FOL]}.IDATIONFOR A SUSTAINABLE SOCIETY (FSSI)INCORPOR{TED We haveauditedthe accompanying statement of financiaipositionof Foundahonfor a SustainabieSociety (FSSI) Incorporated (A Non-Stock,Non-pla|it Corporation)^s af December31, 1996and the relatedstatements of activttjesand cashflows for the year then ended. Theseflnancialstatements are the responslbilityof the Company,s management.Our responsibilityis to express anopinjonon thesefinancialstatements basedon ouraudit We conductedour audit in accordancervith generallyacceptedauditingstandards. 'fhose standards rcquirethatwe planandperfomlth€ auditto obtainreasonable assurance about whetherthefinancialstatements arefteeofmatenalmisstatement. An auditincludesexamrnlns. on a testbasis,evidencesupporting the amountsanddtsclosur€s in the financialstatements. A]r :ludit also includcsassessing the accountingprinciplesusedand significantestimates maoeoy maDagement. as lvell as evaluating rheoveell tlnancialstatement presentation. We believethat our tudrtprovrdes e tca\unrble bts s for ou-oplnton. In ou! opinion, lhe flnancialstatcments .efeficd to abovepresentiairly, in all material respects,the iinancialpositionof Foundationfbr a Sustainable Society(FSSI)Incorporated A Na -Stock,Non-PrcJitCoryora o ) as of DeccmberI l. 1996and the resultsof its up€raLrons and its cashflows tbr the year thenendedin conibmlity with generlilyacceplcdaccounnng pnncrples.

17* ,44"-"t9^

'lTR No 8oo;49r9 Januar,v 14, 1997 MakatiCitv

Meho NIaniia,Philippines March10,1997

SJ.r"4 i U: u

STATEMENT

OF FINANCIAL

POSITION

ASSETS

Cash a1ldcash cquivaiefts (Nore 2) Loans ie.eivable Proje.ts (Note 3) A..r(€d intercst receivabl€ Advances to office.s an.l employees Projecl guarantees(Note 4) Prepanl cxpenses TotalcuieutAssets Funde Held h TNst/ Net (Notes 2 and 5) Property and Equiprent, Net (Notcs 2

PhP13,932,494.00 ,1,519,891.00 1,75,961.00 584,694.00 1,200,000.00 175,60000 20l588/640.00 473,541,3$,AO 9,648,856.00 PhP501818,859.00

L I A B I L I T 1 E SA N D N E T A S S E T S Cunetrt Liabilities A ( ( r ) ! n t s p A y a b l ca n d a c c r ! R l e x p c n s . s Other curfrrnt linbiliti(x;

PhP 1,172,181.00 112,000.00 P1P 1,584,1E] 0r)

Me bers' contril)ution crancl(Norol) AccuDulakrdsavings,End

PhP 85,500.00 154,822,597.AA 47,326,581.00 502,23,4,678.00 D l , r r ( n qA r a r ( o n ^

SaoNoLesto finan.ialSrarenrents.

THE FOUNDATION

i:l"tll,:';:::;;;,t..i;:;t i::iill., ,i.'[t+t:;**i."1*rffi'' the prjn.r'pjes of erceltpn.c. rransDar""

',ons"^ati',n. ge dcr "";;;; : ":l.':li"""' d,\ prupD,nnr " ",. ',.' ,..1 *,_i"fl,,".

l;':ii:'::'*".",,,,n";;;:;J:il::,," u rundrhdrwd5 ";.J, "l,j,,i.l ll" i",, :."tin6 rtaierql.te1,r

Jlr,\ 'ne,,r .,, bprw, ;) th"s*i..- ,", ,l"-..r.. lll]il r j i r .r ' . , , n n iL, ,\f , , r r n . ^ r " " . . ' r , ' I r u n i t , , . ,\ . 1 " , , , . "",l ' l l l P . "

THE FouNDATIoN,s

VIs roN,..

n,,ft c ffjllt;::"ffiil"'cv rerDrs

TlruDsI rtrpagr€Hnrenr, whk h ..-."

.

ouric Exrp(,werDent *F.. or M.--i.--, r{uraj .rfid Urbcn p,,or

i;',il;l 1l:,9' d'';;';:';i:li:,';ll'i.'" t a dw r t hr h " .

. Sustar ablc pr,,duct ;;;;:':il;"i:;'i'i-:, l:li1':'.onl"tr'^: ;,1.1 ord,onLror,,d b, .;,,;";:1.::::l:l

r ' ",! o r L h Fd p h r ' s r d c c "t v q l u p r,r',r- ov a r u , ,

r r , . . / t i n, r, ) , , p rjpr h , . r ; r e ; M : . r t 1 v . t 5 t , u 2 2 ,rst ,r "7, , " " _ , . .i,. .

r

"".

:;';' ::'"',"';;lr?.;:il "'""";;;r ""; ;i;.;,,.ifil.;i,11"" .;lllj ;.,:l l:: :1.i. t ions ir;;.:1.- l.:ll j*,. "", D,.nt,,rcanj;d il;;;'J1i:l;lf",1,. ililll,lnli: lJ ',*',"'. ',. ,. ,, ,,l,l,ll.ilil,l.;:,"0 rr)ih'( ;,:ili,"li ,!,,q,\/,

f orrptcs orudnrzatl,,ns (pos)

. EconoDrrcdjjy vrdblo

dnd clv,,^"^^-.-

::illl"l"rr'{LjvtsrY

Th, f,,LrrddLn,n t,,li.vp{ rlr.r(!.,,",,-,.

MrssloN.,.

_ Lh,. src,ririiq nt :..|]lil:l_.*,. , " , r , , r v e r n , r r r", tLJr jn1,.or[es rodl

of h""l

Jn\IItUtl(,n r^r lhe l*.""1 il:';; ;lfl;]i,,., ".T.::::"::.: Ji:::,1;1,*::lrti; .."''n"",'."'i,,',in. rh{ \ .1,,r'r,,, ,",,." ;il. ii.,"l"'n',illl.ll.li., ll,.liil;1.'j:l'' .4ivu

, errlpowcr|narrL

of orr,^j-_.

r

l' "'*"'''''"''r'"..]i"i'.,* "li,",ll-'l"'

" " "" ,*ll:llill"'"'..i.';"il;.11" A\ d resorrre DrsrrtutroL)

Ncr.). ,_., , w h , \, h " . , .r i r u i , o r . . , , .fur -, . , , : ' y ' " " J r o . ., .r. t,,h. r""odn,/FJ t'"., a,,,. ".;;; :jl:l':],..

FSSIis co|rrftr'rt€cl b

a) to t'" arra.rv,, and .1dv^",h ^. ".-kcr ,trstness oriForhurjhe, ,t,", t,., .l.il. \aro.,,, brins,ns " ahou, ;i;" empowerrne,rt "::^::,,."' of orga"r."a,,,"-^""_ll

",-,to1,.;"r,1,.,;";,1;,1"i*illl:.' lii',lll,.llll''"ia,",,i_,,. '.",u"*

o r t r ' ar o u , , J di ,r , , r ; s , , p , , , ; " ; r , . ' ; ; ; , , : . r ] , ,

tlla -folowi1lg goals:

'","',,,"".u",, t"".. ;i;1il:ll;;j;.,,"|.

!o be a source of financlal assistancc 0oans, guaranlees,eq(ity investnents and grants) and busnressscNices (lrrarket ass€ssnent,planning financial managenent, etc.), whenever Possiblein colaboration wi*r oth mstitutions, for orgailz€d margnlal .:omm|1nitiesand/or ihcir Partner NGOS Nho undertake ecororlically viable and productive envtr onlIlentally s01111d enterprises that have thc potential to .onlpcic effe.tiv€1y in mainstream Philitpjne econo y, to be a catalysl nr bdngnrg togeiher the rcsorr.es of Philipphe development mslitutionsbolh governmentand privatp of an se.tor,bwards the establishment nrsti!utional funding mcrchanisn lhat rnvcsls in sustainablc productiolr crllcrprises owncd and controlled by organized margiral co fillnitics ior their os n socjaland econo ic bcncliLi to bo a (r)l1lrib11tor in the inrpLeDrentation antiof rho Philippirc SovcrnLnent'!t partic(l.uly thc Social prograns, fr)vorty

-l

lo aintah thc origillal Philippine .urr{arcyvalua ofiis fund ir order k, cnsure tho long-torlrl existenre of the Fo ndatn)naDd the continuity of its

b ilitiate and aht.irr a participatory Flalrning process that activaly sceks lhc ideas oI all its eDrployeesand me bers ni settirlg tho directiorN aLidoperations of dre

NOTES TO FINANCIAL

l

STATEMENTS

GENERAL

'nd Thc Fo!ndation as a non stock, non-prolit corporation was registered with the Securitics 6s15t' €ncourage/ ExchangcCon'nission on SeptenLre.6, 1995 1t5prnnary purpose is !o cont'ibute' (NGO)' people's suFport to non governn€ntal organization trovid.r lechni.al and mandgerial organizations ir sustaiiable pro.lu.tion. On Septembd 6,1995, ihe Philippine Goveimlant, ihiolgh ihe D€Pa'tment of lil1dn'e' gianted PhP +54 S million consisthg of 5% nr .ash and 95y" in govelmnent securitics to the Foxndatiofl the p(xleds of d debt cancclla(ion unde. th€ Bilaieral Ag'eener! o! ihe Redt'Lion of f,.o Eiternal D;( entered hto by th-"Govenlrenls of the PhiliPphes and Switz€rland on Augus( 11, 1995 The iund will be tLsedas g.ants o! L.ans to suppo.t Proj{:.ts oi NCOS, POs, coopdatives and simild' forLh in the private o.ganizatbns is slstahablc P.oduction which falls withnr thc 8lidehles set

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CnsnEqriute Is The Foundati(n conside$ highly liqoid dcbt hstrunerts or loss lrott1dakj ol acquisiiion to bc cash cquivalent€.

PUrcha€ed with a nlalurity of Lhr-'emonths

t\avtvadEqu4"et Prcp€rty and equipnent afr) carried at $st lcss a(unNlaled dePreciaLiorl DePreciaijon i5 coi;putird or the straiShlLinc $0thod over |]ha estinated sefll lives of the assois The cosi of mtrinLcnanceafd rePair i3 charged to in.onre as nrcurr€d while significant fenewals and bciter cfts dre caPitaliz€d. F

lr lfulti it1 lntsl

Flrncis held in tftsi

are valred at the lower of.aggrcgarecost of Dlarker

3 . L O A N 5 R E C EI V AB L E - P R O J E C T S Thesll..eloansgranicdtothefollowirrgcoope.aiivesaldothe.orgalizationswiihintfiasiraLes.anglng ffoDr ll2% to 187" Per anuunrl De.edbr, 11, 1996

PROJECT Center fo. Alierfative Ruial Technology, Inc Maligaya WoDen's Coopeiativ€ . p u . u n 8 , ' A l u ' g c . R " s r d P d r5 u g b u ", . Misanrjs Oriental-Cagayan de Oio Federatiotl Kaanib Founddtion, Inc Broad Initiaiives for Negros Development

AMOUNT PhP1,200.000 924,291 895,500 600,000 500,000 346,100 50,000 PhP4,519,891

I

4 . P R O JE C T G U A R A N T E E g . Th€ loundation estabiishedgueantee funds io support small scale Proj€cts imPlemented by the fo owhg rural banks: December31, 1996

Sallba1i Co munity

Orgdic Fertilizer

PhP200,000

12%

La d Redemption 12%-15%

1,000,000.

PhP1,200000 'The

Urarantcelng portion of the delosib shall@aha Straiant€efec oI 15% lerannur whil€ tr^Ned Portion oi the guaranteerhali earn a timc delosit nrt€rest raLeoI121l,Per dm!r'

5 , F UN D S H E L D I N T R U S T SiartjngJaruary1996,the Fourdaiior aPPoinrcdfou| inv€stnentbanksto act furd managerto ivest the Fundin combinaiionof equities,securitieeand other instruments.A3 of D€c€mber31, 1996,the fund consistof the followingl Dec€mber31,1996 TrrsteeBanks Cityirust BankingCorporation Metro Bankand Trust Corpolalion AB Capitaland InvestmentCorporation So]id BankCorporation

PhP729,159,794 172,647,587 53,583,549 477,9't2,583

ellowancefor declinefrarket vatue 4,33'1,220 PhP473,581,363

6. PROPERTY AND EQUIPM ENT This account cosist

of the following: December31, 1996

Building Transportation equiPment Furniture and fixtures O t h e r D r o D e r t va n d e q u i p m e r t Accumulated dePreciation

PhP2,900,000 4,8'10,265 93A,a67 855,075 7.377

432,237 PhP9,64&856

7.

PROJ ECT GRANTS

assitancq e'ononic These repiesent graibs Prodd€d for deveioPmental activities s ch as lechnical develoPm€nt, Pilot Ploduction' caPabilitv-building and .es6arch,feasibliiy st'rdles, Produci researchand granLs the followinS: to other activities The Foundation awarded

December31,1996 Graniee

Dat€ of Grant 05,20.96 a6.27,96 1D.27.96 10.42.96 09.18.96 74,23.96 10,25.96 10.07.96

PhP717,0AA 807,800 6,000 35,000 50,000 43,000 10,000 49,800

70.29.96 11.29.96 05.20.96 sa KasadPasugbu 6a Ka[swagan KapunuganAlang 08.27.96 KaanibFoundation,Inc (CART) 08.25.96 lnc. Technology, Centerfor AlternaiiveRural 48.27.96 HARIBON-FCNR

50,000 50,000 282340 319,000 300,000 2r9,254

HarnessingS€lf ReliantInitiativesand Knowledge,Inc Area ManagementBank St. AugustineSambales CoalitionofServicesof the Elderly PHILDHRRA Cauc!rsof D€velopmentNGONetworks Convergence KPPSK Tagudin MultiPurPoseCooPerative Managenaniand OrganizationalDeveloPnant for Empowerment

PhPz,939,150

OTHER MATTER5 'l'nr Erenptiott Priailege oP€rated mamLy for-the prcmot'on 01 sdFL Th€ Foundation is a corporation not organized for profrt but korr under sectioi ?6(g) of th€ iu' coa"' u" am€nded' and lherefoie' exenpl * -*"-p""j *"itrnot file an ne€d thel€fore and organizaton the pavnent of income tax on incone rec€ived by it as such of donor s fiom pdvment exemPt is also FssI such income Furthermoi€' .",".,. ;;"#-;; not flore than "."."inins that 'ondition to the subject n4 (aj (3) of the Tar Code, as amended t-t"" i.* -*,.* " be used bv ihe done€ FSSIfor administrative purPoses girb shall said $e of 30f imposed under the Naliona1 Int€ilal How€lei, it is subject to corresponding internal rev€nue tares real or Personalor anv aciivitv n,,"""'" C.a" .. i," i""om€ deriv€d from anv ot ils prcp€'ties' condx.ted foi profit legardle$s ot thc disposition lrohibitioll AgaittstSlnring h Caryantc Assetsaltd Effninss no Pefson or Personsshall be Upon the dissolution ard winding up of the affaj's of the Forndation' a s s e l sA l l D r ' m b € r so f t L r ef o u n d a h o n s h a l lb € u ' , " o i s k i b u t i o no 1 a n y r : o r p o r a t € o,ituoi . "n*"'. dissrtution of ihe Foundalior' whether deoned io have expressly ^gre€d and consent€dthat uPon 6uch a'1cl tl'l(lassetsof lhe Foundatioi' aftcr paying its liabilj!es' shall be co'lv€yed '.l.lnt."y - i"*l"nt*y, to sitnilar PhiliPPiness(bstantially transfdre.l to afy qualified foundation ergagcd in activiti€s in the of intNmcntalities of its aSenci€s' ir"o" .r U", rouna.iio'fs or to th€ RePublicof the PhiliPPincs or any political sul,divisions as thc Board ol Trustees ntay dccido

GENERAL

ASSEMBLY

Patricia Ma. Araneta Mait€t Diokno Salvacion Bulatao Feliciano Carifro Teresita de Leon Jocelyn Cabo Mardmo Kalaw, Jr. Sr. Rosann€ Malilin Evalyn Ulsua Marlene Ramirez Marth Tanchuling Barbara Salazar Sen.SanrarrirlaRasul Karefi Taffada Ma. Aulora Tolentrno Lourdes Vlllaftreva Paul Weiiers Remo Gesu Romeo Royandoyan Ma. Cecilia Soriano JosefEisele

MEMBERS

Associationof Foundations Freedomfrom Debl Coalition EcumenicalDevelop:nent Alsociahon of the Philippin€s National Council of Chlrch€s in the Philippin€s NationalConfederationof Cooperatives Partnershipof PhilippineSupportServiceAgencies Greer'rForum NationalSacretariatfor SocialAction Grupo ng Lakas ng Kababaihan(G10) Philippine Partnership lor the Development oI Hurnan Resourceo in the Rural Areas NGO Canterfor CooperativeDevelopment MagbasaKita Founda(on Womens Action Network for Develop[rent PhilippineBu3he6sfor SocialProgre8s NatlonalCouncilfor SocidlDevelopment SWISSCONTACT HELVETAS CONVERCENCE Departmont of Finance SwissEnlbaBoy