Alternative Course of Action

• ACA 1: Foundation for the founding parents – tax breaks, offset expenses for CSR - CARLO

o This ACA will cover the following primary features:

Pascual Laboratories, Inc. will establish a foundation (non-stock/non-profit corporation) in honor of its founders, Isosceles and Leonora Pascual, for being a prime example in sound business ethics and good governance and for their unwavering commitment to Corporate Social Responsibility. This foundation will focus mainly on healthcare-related charity work, grants, and endowments in order to channel its resources properly with the highest level of competence and efficiency.

o Execution

▪ Formally establish the foundation with the SEC (includes the ff):

• Articles of Incorporation and by-laws (name, directors, etc.)

• Infuse capital of at least Php 1,000,000.00 (SEC Circular 8-2006)

• Get endorsement from various government agencies (e.g. DSWD, DepEd, DOH, etc.) mandated by E.O. 720

▪ Create a framework and roadmap of activities lined up for the foundation

▪ Develop the foundations networking capabilities

• Marketing and awareness campaigns to be made known

• Build trust and relationships within the NGO community

▪ Conceptualize and execute fundraising programs

• Fundraising campaigns (dinners, marathons, etc.)

• Support or initiate charity work

• Endow grants, etc.

▪ Execute these programs

o Advantages

▪ Tax Benefits – Non-stock/Non-profit foundations are exempt from tax (R.A. 8424, Tax Reform Act of 1997)

▪ Gives Pascual Labs full control of where the funds for donations, grants, and other charity-work will go to

▪ Provide additional jobs

▪ Provides for a good channel for Corporate Social Responsibility work

▪ Additional donations from other benefactors allows for greater leverage in having pooled funding or resources

o Disadvantages

▪ The time and the tedious work...