Annual Report 2014

Groundwork for a Credible InstitutionGroundwork for a Credible Institution Annual Report 2014St. Luke’s Medical CenterAFNoNuUnALdRaEtPioOnRT, 2I0n1c4. 1

Groundwork for a Credible InstitutionMessage from theChairman of theBoard of TrusteesRunning a foundation is by no means an easy task. You are not only accountableto the people you serve, but most of all, you are answerable to the public whoputs their trust, supports, and participates in carrying out your mission.Because of this valuable trust, the Foundation must be able to assure its supportersthat the donations they give are put to good use for the benefit of those in need.It is belief in this principle that continually pushes us to improve our efficiencyin running the St. Luke’s Medical Center Foundation, Inc. This year, we embarkedon two major tasks to ensure the public of utmost transparency and competencein handling the donations they entrust to us.We have registered the Foundation with the Department of Social Welfare andDevelopment, which assures the public that we are effective partners ofgovernment in social service delivery. We also applied for accreditation with thePhilippine Council for NGO Certification (PCNC), a network of non-profitorganizations that puts a stamp of good governance and good housekeepingon NGOs.While we are waiting for the PCNC accreditation to be released, we pledge ourcontinued commitment to our supporters to improve our processes and to workon reaching the greatest number of people in need.We thank our donors for their invaluable cooperation and collaboration. And tothe public we serve, you can be assured of our unwavering assistance.FREDERICK Y. DYANNUAL REPORT 2014 2

Groundwork for a Credible InstitutionMessage from thePresidentThe year 2014 has been an auspicious year for the St. Luke’s Medical CenterFoundation, Inc. We completed the two major tasks of registering the Foundationwith the Department of Social Welfare and Development and applying foraccreditation with the Philippine Council for NGO Certification, while alsosteadfastly sustaining our existing programs. In addition, we phased in two moremajor programs to the Foundation’s thrust.I am very happy to report that we released over PhP3,000,000 for our Social ServiceProgram. This has benefited the indigent patients of St. Luke’s Medical Center, givingthem access to the best medical care from the premiere hospital in the country. TheProgram has also allowed communities to benefit from the expertise of SLMCphysicians, as we allocated funding for a surgical mission to Bantayan Island, Cebu.This year, the Foundation started financing the education of the first batch of scholarsof our Medical Scholarship Program at the St. Luke’s College of Medicine-WilliamH. Quasha Memorial. Five bright but financially challenged students have beenawarded generous scholarships to pay for their four-year of medical education.We have supported a research project on a study on the anti-inflammatorycomponents of five local berries. The research is important in that it promisesimpact on managing inflammatory diseases in the future.The year has been fruitful for the Foundation because of the generous supportof our donors, without whom these projects would not be possible. To thesepeople, we are truly very grateful.EDGARDO R. CORTEZ, M.D.ANNUAL REPORT 2014 3

Groundwork for a Credible InstitutionMessage from theResource GenerationDirectorThe work of the St. Luke’s Medical Center Foundation, Inc. is made possible throughthe unstinting and big-hearted support of the donors of the Foundation. We arehappy to report that in 2014 the generosity of our supporters has allowed usto pull together a little over PhP10,000,000 in donations.These donations have allowed the Foundation to fund the treatment ofunderprivileged cancer patients, who, would not have been able to pay for theirdiagnosis, surgery, chemotherapy or hospitalization without this support. Inaddition, it has supported the treatment and hospitalization of non-cancerpatients, and has financed medical outreach to a far flung town in Cebu.The donations have also enabled the Foundation to support the education offive medical students whose family situation presents challenges for them topursue their dream of becoming doctors.Lastly, donations have also been used to enable the Research Management officeof the St. Luke’s College of Medicine-William H. Quasha Memorial to embark ona significant research on the medicinal properties of local berries.To our donors, we extend our heartfelt appreciation. Without you, our work tohelp the marginalized in Philippine society would not be possible.Thank you very much.EMMA A. YUHICOANNUAL REPORT 2014 4

Groundwork for a Credible InstitutionWho We AreThe St. Luke’s Medical Center Foundation, Inc. was registered with theSecurities and Exchange Commission on 28 August 2012. It is a non-stock,non-profit resource agency that raises funds through the help of the privatesector to enable it to initiate, implement, and support charitable, educational,and social welfare projects. Vision Equal access to quality healthcare, greater opportunities for medical education, sustained support for medical research and training, to benefit underprivileged Filipinos. MISSION To generate resources to sustain charitable, educational, and social welfare programs, and provide support for research and continuing medical education, to promote the rights of the underprivileged individuals, and to advance the scientific cause.ANNUAL REPORT 2014 5

Groundwork for a Credible InstitutionPrograms and ServicesFundraisingThe Foundation raises funds through the help of the public tosupport its programs that benefit needy individuals andcommunities, and to promote the medical and scientific cause.Social ServiceThe bulk of donations the Foundation receives is spent for indigentpatients of the Medical Social Service Department of St. Luke’s-Medical Center, Quezon City. The Foundation subsidizes, in full orin part, various medical procedures and hospitalization servicesavailed of by underprivileged patients.Under this program, the Foundation supports community medicaloutreach programs that bring the expertise of St. Luke’s MedicalCenter doctors to communities where medical and surgicalservices are needed.ANNUAL REPORT 2014 6

Groundwork for a Credible InstitutionMedical Scholarship andContinuing Medical EducationThe Medical Scholarship Program is a generous scholarship grantthat pays for the four-year medical education of talented butunderprivileged students of the St. Luke’s College of Medicine-William H. Quasha Memorial. The scholarship grant covers thetuition, lab, clinical and miscellaneous fees, and book allowance ofstudents.The Continuing Medical Education Program, on the other hand,supports the fellowship training of medical doctors seekingspecialization in various medical fields or their postgraduateeducation and training.ResearchThe Research Program supports medical and health researchendeavors.ANNUAL REPORT 2014 7

Groundwork for a Credible InstitutionLaying Down the Basisfor a Reliable InstitutionMuch of 2014 was spent by the Foundation in laying downthe groundwork to become a functional and trustworthyinstitution where donors can securely entrust their money.This is the Foundation’s commitment to ensure the publicthat any donation to the Foundation will be used to benefitthe causes they wish to support.To make this goal a reality, the Foundation worked towardssecuring official recognition from the Department of SocialWelfare and Development (DSWD) and the PhilippineCouncil for NGO Certification (PCNC). Recognition fromthese two bodies is a legal requirement of the Philippinegovernment on all non-profit organizations. However,these are also measures by which non-profit organizationsare gauged for their effectiveness and competence indelivering social welfare programs to the needy.ANNUAL REPORT 2014 8

Groundwork for a Credible InstitutionDSWD RegistrationAs early as April 2014, the Foundation filed itsapplication with the DSWD. It went through a stringentprocess of evaluation to be considered as a bona fideNGO whose programs benefit the underprivilegedpublic. The Foundation was awarded its registration on5 September 2014.The DSWD registration gives the Foundation the legalmandate to operate as a resource agency that fundssocial welfare and development programs and projects.This means that the Foundation has met the minimumcriteria set by the DSWD to be considered agovernment’s partner in social service delivery. Thisregistration assures donors that the Foundation’sprograms are transparent, effective, and beneficial todisadvantaged sectors of Philippine society.Resource Generation Director Emma A. Yuhico receives the certification fromDSWD-NCR Assistant Secretary Teodulo R. Romo, Jr.ANNUAL REPORT 2014 9

Groundwork for a Credible InstitutionPCNC AccreditationAfter being registered with the DSWD, the Foundation applied foraccreditation with the PCNC. The PCNC serves as the partner of theBureau of Internal Revenue (BIR) in granting authority to foundationsand NGOs to issue donation certificates to donors for tax exemptionpurposes.The process of accreditation involves the rigorous examination of theFoundation’s book of accounts, programs, and other pertinentdocuments. Interviews with Board Members, staff, volunteers, andbeneficiaries were also conducted to ensure the legitimacy andefficiency of its programs.The accreditation assures donors that their donations are wisely andprudently used for their intended purpose. It also provides them theguarantee that the bulk of their donations go to programmatic costs andnot to administrative expenses.The Foundation has alreadygone through an evaluation visitfrom the PCNC and is nowawaiting its decision.BIR Income Tax ExemptionThe Foundation also applied for Income Tax Exemption from the BIRto exempt all its donation income from taxes. The BIR extends thisprivilege to non-profit organizations that run charitable social serviceprograms.Once granted, donations will be maximized for the benefit of thosein need. The Foundation is looking at securing this by the firstquarter of 2015.ANNUAL REPORT 2014 10

Groundwork for a Credible Institution2014 AccomplishmentsThe Foundation has had moderate but significantaccomplishments for the year. Despite the slow ingress ofdonations, the accomplishments are still substantial becausenumerous people have been helped through its programs. TheFoundation was also able to phase in almost all its programsexcept for the Continuing Medical Education Program.Donation RevenuesThe Foundation received a total of PhP10,448,747 (see graphbelow) in donations for 2014. While this amount is 50% higherthan the donation revenue for 2013, it must be noted, that the2013 donations only cover a six-month period, while the 2014donations cover a full year. DONATION REVENUE 2013-2014 (All Amounts in Philippine Peso)ANNUAL REPORT 2014 11

Groundwork for a Credible InstitutionWhile an overall improvement in donation collection was observed comparedto the previous year, the donation revenue is still 48% short of the total targetof PhP20,000,000 in donations. This is due in part to the absence of the PCNCaccreditation, which in turn, resulted to the Foundation’s inability to issuedonation certificates that will allow donors to claim tax deductibility. This hasimpeded the entry of larger donations as donors were circumspect aboutshouldering the 30% donors’ tax.Despite this setback, big-hearted individuals and corporations still gavesubstantial sums to the Foundation (PhP500,000 and up), which resulted to anPhP8,845,835 collection. Most of the donations came in by the second half ofthe year.TABLE 1. DONATIONS RECEIVED OVER PhP500,000 IN 2014 (All Amounts in Philippine Peso)Month Received Donor AmountMarchMay Astra Zeneca Pharmaceuticals 1,500,000July GloboAsiatico Pharmaceuticals 2,000,000 SLMC-GCNovember Roland Tan 995,835 William Carlos Uy 1,350,000TOTAL Heart Institute 1,000,000 2,000,000 8,845,835 ANNUAL REPORT 2014 12

Groundwork for a Credible InstitutionProgrammatic SpendingThe Foundation spent a total of PhP5,051,047 for its programs last year. Thisis 26% higher than the Foundation’s expenses in the previous year. In 2014,substantial grants were given to the first batch of Foundation medicalscholars and the research project of the Research Management Office of theSLCM-WHQ. COMPARISON OF PROGRAM EXPENDITURES 2013-2014 (All Amounts in Philippine Peso) 2013 2014ANNUAL REPORT 2014 13

Groundwork for a Credible InstitutionMedical Social ServiceDespite the shortfall in donation targets, the Foundation sustainedits programs for 2014. However, adjustments were made to thebudget for the grants based on the donations received. This year,Medical Social Service still received the largest chunk of the budget,with a total of PhP2,500,000 being released in July 2014.A large part of the grant released to MSSD—PhP2,000,000—wasdesignated by the donor, GloboAsiatico Pharmaceuticals, for cancerpatients. The remaining PhP500,000 was spent for all other patients.A total of 28 cancer patients benefited from the PhP2,000,000 grant.This was used to pay for their medical management, chemotherapy,and surgical procedures such as above-elbow amputation,sigmoidectomy, among others. On the other hand, 17 patientsbenefitted from the PhP500,000. The grant was used to pay forsurgical procedures such as thyroidectomy, appendectomy, lapcholecystectomy, cystoscopy and the medical management ofindigent patients.Funding amounting to PhP785,617 was also given to help thesurvivors of Typhoon Yolanda. Part of the funds was spent for asurgical mission in Bantayan Island, Cebu.ANNUAL REPORT 2014 14

Groundwork for a Credible InstitutionMedical ScholarshipFive medical students of the SLCM-WHQ were awarded the veryfirst St. Luke’s Medical Center Foundation, Inc. Scholarship Grant.The students qualified to the stringent academic andsocioeconomic criteria set by the Foundation. All five studentsgraduated with Latin honors and their families have been provenincapable of funding their medical education.The first batch of scholars of the Foundation are: Rose An BolitoAlday, Kristian Rei Dimaunahan Castillo, Carmela Saludo Runas,Johnlehi Mirasol Surio, and Tracy Mapula Velasco.A total of PhP1,265,430 was released to pay for the first year ofeducation of the freshmen medical students.From L-R: Johnlehi Surio, Tracy Velasco, Rose An Alday, Carmela Runas, and Kristian Rei CastilloANNUAL REPORT 2014 15

Groundwork for a Credible InstitutionResearchThe Foundation also awarded the very first SLMCFI ResearchGrant to the Research Management Office of the SLCM-WHQ.The research investigates the anti-inflammatory properties offive local berries namely, Aratiles (Muntingia calabura),Alugbati (Basella alba), Bignay (Antidesmabunius), Duhat(Syzygiumcumini), Mulberry(Morus alba), and Miracle Berry(Synsepalumdulcificum). It also studies how these berries couldbe used to reduce inflammation, for now in artificially inducededema in mice. The research is headed by the Director of theResearch Management Office, Maria Nilda M. Munoz.The grant given amounted to PhP500,000.ANNUAL REPORT 2014 16

Groundwork for a Credible InstitutionFinancial ReportThe Foundation has been able to keep its administrative expenses below themaximum allowed by the DSWD. For 2014, the administrative expenses cameup to 19%. On the other hand, 81% of the donations were spent for programexpenses. Table 2. STATEMENT OF TOTAL COMPREHENSIVE INCOME (All Amounts in Philippine Peso)Receipts Year ended Donation Income 12/31/2014Expenses 10,448,747 Program Expenses (6,220,643) Administrative Expenses (5,051,047) (1,169,597)Interest Income 9,228Excess of Receipts over Expenses for the period 4,237,332PROGRAM AND ADMINISTRATIVE EXPENSES 2014 (All Amounts in Philippine Peso)20% 80% Program Expenses Administrative Expenses ANNUAL REPORT 2014 17

Groundwork for a Credible Institution Board of Trustees Frederick Y. Dy, Chairman Alonzo Q. Ancheta Agapito S. Aquino Lenora A. Cabili Edgardo R. Cortez Conrado S. Dar Santos Winfred Y. Huang Bun Chin Hwang Robert F. Kuan Jose F.G. Ledesma Rt. Rev. Manuel C. Lumpias Nilo B. Peña Juan B. Santos Tony Tan Caktiong Manuel B. Zamora, Jr. Administrative Officers Edgardo R. Cortez, MD, President * Editha M. Simeon, Treasurer*Emma A. Yuhico, Resource Generation Director* Arnie C. Trinidad, Foundation Manager Allan P. Quijano, Finance Manager*Noemi M. Irasusta, Assistant Finance Manager* * VolunteersANNUAL REPORT 2014 18