[OLPC-Philippines] SEC and PCNC requirements

Jose Mari Bigornia jtbigornia at gmail.com
Sun Mar 22 09:37:43 EDT 2009 

Hi to All,

is it possible that we can peggy back our group with a foundation like PBSP
/ AYALA  etc..who are also committed to
and the vision or mission same as OLPC...we can just make an Memo of
Undesratnding / Agreement which ever is more douable for both
Organization..if its okey with I can explore the possiblity and talk to
them.

Malee Bigornia

2009/3/22 Charles Chen <ideasman88 at yahoo.com.au>

> Hi Cherry and for the information of everbody,
>
> 1. The minimum paid-up capital requirement for a non-stock, non-profit
> corporation if registered with SEC is P1.0 Million. This was based on the
> information sheet given byt the SEC when I was attempting to register OLPC
> last year.
>
> You can find the same information from the SEC home page and going to Main
> tab/ Guide to SEC requirements tab/ Corporations/Partnerships tab. This will
> lead you to a document titled SEC Registration Requirements (as of 5 Nov
> 2007). If you click on the non-stock corporations under the first heading
> (Registration of Corporations) it would lead you to the page listing the
> specific requirements for non-stock corporations.
>
> I tried looking for a way we could this in another way because I personally
> did not have that amount of money. But unfortunately, I could not find a way
> around it. I understand this was not a requirement before and only became
> one recently.
>
> A foundation is the legal term used to describe a non-profit organisation.
> The foundation can be a Non-Government Organisation (NGO). An NGO is an
> organisation that does not have any representation or participation from the
> government but perform a public service role usually played by a government
> insititution.
>
> 2. Based on the information provided by Philippine Council for NGO
> Certification (PCNC) website describes the following benefits of being PCNC
> certified:
>
> "Donations to donee institutions are tax-deductible and/or exempt from
> donor's tax (Section 34(H) and Section 101 of the Philippine Tax Code). In
> other words, aside from being exempt from donor's tax, local donors, whether
> individual or corporate, can deduct the amount they have donated from their
> taxable income derived from trade or business as computed without the
> benefit of the deduction. Donations to some donee institutions, however, are
> subject to limited deductibility: 10% for individual donors and 5% for
> corporate donors.
>
> Thus, tax incentives such as those mentioned above encourage local
> donations and, especially in these times of dwindling financial resources
> from abroad, complement PCNC's aim to strengthen private sector
> participation in our country's social development."
>
> However, for an NGO to be certified by the PCNC they also have to be
> non-stock, non-profit.
>
> 3. I am not a taxation expert so I am not sure whether the tax deductibilty
> can be retrospective. Normal business practice especially when it comes to
> applying tax exemptions is you can only use it moving forward after
> obtaining the exemption or at least within the same taxable year. But I have
> sent an email to the PCNC to ask this question. I will get back to you once
> they have answered.
>
> Thanks.
>
> Charles
>
> --- On *Sun, 22/3/09, olpc-philippines-request at lists.laptop.org <
> olpc-philippines-request at lists.laptop.org>* wrote:
>
>
> From: olpc-philippines-request at lists.laptop.org <
> olpc-philippines-request at lists.laptop.org>
> Subject: OLPC-Philippines Digest, Vol 17, Issue 4
> To: olpc-philippines at lists.laptop.org
> Received: Sunday, 22 March, 2009, 3:00 AM
>
> Send OLPC-Philippines mailing list submissions to
>     olpc-philippines at lists.laptop.org<http://mc/compose?to=olpc-philippines@lists.laptop.org>
>
> To subscribe or unsubscribe via the World Wide Web, visit
>     http://lists.laptop.org/listinfo/olpc-philippines
> or, via email, send a message with subject or body 'help' to
>     olpc-philippines-request at lists.laptop.org<http://mc/compose?to=olpc-philippines-request@lists.laptop.org>
>
> You can reach the person managing the list at
>     olpc-philippines-owner at lists.laptop.org<http://mc/compose?to=olpc-philippines-owner@lists.laptop.org>
>
> When replying, please edit your Subject line so it is more specific
> than "Re: Contents of OLPC-Philippines digest..."
>
>
> Today's Topics:
>
>    1. Re: OLPC PH Stimulus Plan (Bernie Innocenti)
>    2. Re: OLPC-Philippines Digest, Vol 17, Issue 2 (Cherry Withers)
>
>
> ----------------------------------------------------------------------
>
> Message: 1
> Date: Fri, 20 Mar 2009 23:46:48 +0100
> From: Bernie Innocenti <bernie at codewiz.org<http://mc/compose?to=bernie@codewiz.org>
> >
> Subject: Re: [OLPC-Philippines] OLPC PH Stimulus Plan
> To: OLPC Philippines/Pilipinas grassroots
>     <olpc-philippines at lists.laptop.org<http://mc/compose?to=olpc-philippines@lists.laptop.org>
> >
> Message-ID: <49C41CD8.4000003 at codewiz.org<http://mc/compose?to=49C41CD8.4000003@codewiz.org>
> >
> Content-Type: text/plain; charset=ISO-8859-1
>
> Jerome Gotangco wrote:
> > Let me know when the domain olpc.ph is needed. It's just idle at the
> > moment and would be glad to donate it as well when things are
> > formalized on that end.
>
> If needed, Sugar Labs would be happy to host the OLPC Philippines
> website for free on one of our servers with lots of bandwidth.
>
> We're already doing that for OLE Nepal.
>
> --
>    // Bernie Innocenti - http://www.codewiz.org/
> \X/  Sugar Labs       - http://www.sugarlabs.org/
>
>
> ------------------------------
>
> Message: 2
> Date: Fri, 20 Mar 2009 22:29:04 -0700
> From: Cherry Withers <cherry.withers at gmail.com<http://mc/compose?to=cherry.withers@gmail.com>
> >
> Subject: Re: [OLPC-Philippines] OLPC-Philippines Digest, Vol 17, Issue
>     2
> To: olpc-philippines at lists.laptop.org<http://mc/compose?to=olpc-philippines@lists.laptop.org>
> Message-ID:
>     <958133bc0903202229i27e3bd5fo98f4b8a1b4544261 at mail.gmail.com<http://mc/compose?to=958133bc0903202229i27e3bd5fo98f4b8a1b4544261@mail.gmail.com>
> >
> Content-Type: text/plain; charset="iso-8859-1"
>
> Dear Charles,
>
> Thank you for starting this discussion. I do have a couple of questions
> regarding your post.
>
> 1) I know that the 1M peso capital is needed to establish a foundation, but
> there doesn't seem
> to be a capital requirement to form a non-profit/non-stock NGO and a quick
> look at the SEC-PH
> website and an email from PCNC shows that the cost would be comparatively
> minimal than forming
> a foundation (around $1000). What are the benefits of forming a foundation
> vs. a regular non-profit NGO?
>
> 2) Would a donation to a foundation be exempt from donor's tax vs. a
> non-profit NGO? We might still have
> get this added benefit even if we're a regular non-profit NGO by
> registering
> for a DONEE certification with
> PCNC :http://www.pcnc.com.ph
>
> 3) Since we have yet to raise the 1M peso capital to register to
> organization, would the donations be retroactively
> be exempt from the donor's tax after we've registered the foundation(if
> this
> is in fact an added benefit of forming one)?
>
> Thanks again.
>
> Sincerely,
> Cherry Withers
>
> P.S. Jerome, the hosting that you're talking about for the olpc.ph name,
> is
> that just for the domain name hosting or
> that does include the site hosting as well? If not, I have an account on
> www.bluehost.com that you guys can use
> for a year.
>
>
>
> On Sat, Mar 14, 2009 at 9:00 AM,
> <olpc-philippines-request at lists.laptop.org<http://mc/compose?to=olpc-philippines-request@lists.laptop.org>
> >wrote:
>
> > Send OLPC-Philippines mailing list submissions to
> >        olpc-philippines at lists.laptop.org<http://mc/compose?to=olpc-philippines@lists.laptop.org>
> >
> > To subscribe or unsubscribe via the World Wide Web, visit
> >        http://lists.laptop.org/listinfo/olpc-philippines
> > or, via email, send a message with subject or body 'help' to
> >        olpc-philippines-request at lists.laptop.org<http://mc/compose?to=olpc-philippines-request@lists.laptop.org>
> >
> > You can reach the person managing the list at
> >        olpc-philippines-owner at lists.laptop.org<http://mc/compose?to=olpc-philippines-owner@lists.laptop.org>
> >
> > When replying, please edit your Subject line so it is more specific
> > than "Re: Contents of OLPC-Philippines digest..."
> >
> >
> > Today's Topics:
> >
> >   1. OLPC PH Stimulus Plan (Charles Chen)
> >
> >
> > ----------------------------------------------------------------------
> >
> > Message: 1
> > Date: Fri, 13 Mar 2009 17:13:37 -0700 (PDT)
> > From: Charles Chen <ideasman88 at yahoo.com.au<http://mc/compose?to=ideasman88@yahoo.com.au>
> >
> > Subject: [OLPC-Philippines] OLPC PH Stimulus Plan
> > To: olpc-philippines at lists.laptop.org<http://mc/compose?to=olpc-philippines@lists.laptop.org>
> > Cc: Ellay Ricalde <MSRicalde at psbank.com.ph<http://mc/compose?to=MSRicalde@psbank.com.ph>>,
> solutiongrove at gmail.com <http://mc/compose?to=solutiongrove@gmail.com>,
> >        Elleanarosa Ricalde <elleanarosa at yahoo.com<http://mc/compose?to=elleanarosa@yahoo.com>
> >
> > Message-ID: <471853.79615.qm at web54003.mail.re2.yahoo.com<http://mc/compose?to=471853.79615.qm@web54003.mail.re2.yahoo.com>
> >
> > Content-Type: text/plain; charset="utf-8"
> >
> > Hello everybody,
> >
> > I am sorry for being silent the last few months as I had been busy on
> other
> > important matters. I hope despite the current economic situation, we
> > continue to have a job or a source of income and continue our efforts to
> > develop a viable model for using OLPC in the Philippines.
> >
> > In a similar way where governments across the world are implementing
> > various stimulus programs to jump start their economies, I would like to
> > start the same for our group in the Philippines to help me establish the
> > OLPC Philippines Foundation.
> >
> > We will initially aim to raise P1.0 Million pesos which is the capital
> > requirement for a non-profit, non-stock foundation to be registered in
> the
> > Philippines. I will start the ball rolling with an initial donation of
> > P5,000. I have asked my niece, Ellay Ricalde who is a branch manager at
> > PSBank in Makati to help us in opening the required bank account and hold
> it
> > in trust until we are able to reach the P1.0 million amount. While the
> money
> > is in the account held in trust it cannot be withdrawn (only deposits can
> be
> > made) by anybody (including her) until the company is registered and its
> > articles of incorporation and by-laws are presented. After such time, the
> > foundation will manage the funds raised.
> >
> > I would like to solicit help from the rest of the group in the following
> > manner:
> >
> > 1. Nomination of at 4 other people who aside from myself to be the
> initial
> > 5 trustees (I will be the fifth person) of the foundation. They shall be
> the
> > people also who will assist in drafting the articles of incorporation and
> > by-laws of the foundation.
> >
> > 2. Nomination of at least 3 members to compose the finance committee. We
> > need to develop a program to raise the money we need not only to register
> > the foundation but also our day-to-day activities. I know in the light of
> > the current economic situation asking for donations will be difficult so
> we
> > need to plan how to do this effectively and efficiently. One idea is
> > soliciting the help of our local Congressman or other publicly elected
> > official to make a donation to the foundation to start a OLPC pilot in
> his
> > congressional district.
> >
> > 3. Nomination of at least 3 members to compose the pilot committe. I
> > previously have mentioned a plan to do a school pilot with Don Bosco
> > Mandaluyong. I have put this pilot on hold until a viable model has been
> > identified on how to do this. Reading all the previous discussions which
> at
> > some point became passionate if not heated, I decided we need first work
> out
> > what will be the deployment model appropriate for us. Once that is
> finalised
> > I can go back to Don Bosco to work with them to test this. For those
> > involved in this committee we can now secure a minimum of 100 XO laptops
> for
> > US$ 259 each for the pilot. I have enclosed the following links provided
> > below by OLPC Australia for your reference.
> >
> > http://www.olpcfriends.org/2009/02/olpc-deployments-a-global-approach/
> >
> > http://wiki.laptop.org/go/Australia%27s_first_deployment
> >
> > http://laptop.org/en/participate/change-the-world.shtml
> >
> > Caroline, you may want to be involved here.
> >
> > The establishment of the foundation will help us have the needed legal
> > entity to futher promote our activities. Once we are able to register
> > ourselves as a tax exempt institution we can be an attractive receipient
> for
> > tax deductable donations from private companies and individuals. And
> > finally, with the financial resources available, we will be able to
> afford
> > to cover some if not all the cost of our activities. Even if we all
> > volunteer our time and effort (the example of Bernie Innocenti) we still
> > need to have the needed funds to cover the out-of-pocket expenses
> involved.
> >
> > Bernie I will keep in mind once the right opportunity comes up for us to
> do
> > this.
> >
> > Thanks.
> >
> > Charles Chen
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >      Stay connected to the people that matter most with a smarter inbox.
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