FUND SOURCING SYSTEM

TAXATION

Introduction:

REPUBLIC ACT NO. 4092 - AN ACT TO AMEND SECTIONS SEVEN AND EIGHT OF

COMMONWEALTH ACT NUMBERED FIVE HUNDRED EIGHTY-SIX ENTITLED "AN ACT TO

PROVIDE FOR THE REVISION OF THE SYSTEM OF PUBLIC ELEMENTARY EDUCATION

IN THE PHILIPPINES INCLUDING THE FINANCING THEREOF", AS AMENDED, TO

PROVIDE FOR THE SUPPORT AND MAINTENANCE OF INTERMEDIATE SCHOOLS IN ALL

CHARTERED CITIES BY THE NATIONAL GOVERNMENT AND FOR THE PURPOSE OF

ABOLISHING THE MATRICULATION FEES OF PUPILS ENROLLED IN THE

INTERMEDIATE GRADES AND PROVIDING FUNDS FOR THE PURCHASE OF

SUPPLEMENTARY READERS AND OTHER LIBRARY BOOKS AND FOR FINANCING

ATHLETIC ACTIVITIES IN THE INTERMEDIATE CLASSES, AND FOR OTHER PURPOSES

Section 1. Section seven of Commonwealth Act Numbered Five hundred

eighty-six, as amended by Commonwealth Act Numbered Six hundred fifty-six, is

hereby amended to read as follows:

"Sec. 7. Commencing with the school year nineteen hundred forty to nineteen

hundred forty-one, public elementary education (comprising the primary and

intermediate courses) shall be supported by the National Government. Sites for school

houses, for primary and for intermediate classes, shall be acquired by the

municipalities, municipal districts, or chartered cities, as the case may be, through
purchase or conditional or absolute donation: provided, that the Department of

Education may, with the approval of the President of the Philippines, waive any

requirement for the acquisition of school sites of standard size whenever the same are

not available.

The necessary funds shall be provided by the national government for the purchase

of supplementary readers and other library books which had been previously approved

by the Board on Text Books or by the Director of public schools, and for financing

athletic activities in the intermediate classes: provided, that books which are a

contribution to Philippine literature shall be preferred."

Sec. 2. Section eight of the same Commonwealth Act Numbered Five hundred

eighty-six is hereby amended to read as follows:

"Sec. 8. To enable the National Government to properly finance the public

elementary schools and meet the burden of their operation as provided in this Act, from

and after July first, nineteen hundred and forty, the disposition of the proceeds of the

taxes under Commonwealth Act Numbered Four hundred and sixty-five, known as the

Residence Tax Law, shall be as follows:

"Of all the taxes collected and remitted to the Collector of Internal Revenue as

provided in Section eight of Commonwealth Act Numbered Four hundred and sixty-five,

fifty per centum shall be allotted in the following proportions by the said Collector

among the provinces, chartered cities, municipalities, and municipal districts on the

basis of population as shown by the latest official census;

 "One-half to the general funds of the provinces. A sub-province shall receive its

proportionate share of the proceeds allotted to the province; and

"The other half to the general funds of the chartered cities, municipalities, and

municipal districts.

"Out of the remaining fifty per centum of the proceeds of said taxes, municipalities

and municipal districts shall continue to receive the corresponding share in the school

fund of municipalities and municipal districts to which they were entitled under the

provisions of law in force prior to July first, nineteen hundred and forty. The balance

including the share of chartered cities in the school fund of cities to which they were

entitled under the provisions of law in force prior to July first, nineteen hundred sixty-

two shall accrue to the National Government."

Sec. 3. Such sums as may be necessary to implement the provisions of this Act

are appropriated annually, out of the funds in the National Treasury not otherwise

appropriated: provided, however, that in place of the matriculation fees that will not be

collected, the amount of two million pesos shall be set aside and distributed to all the

cities, municipalities, and municipal districts, except the City of Manila, at the rate of

two pesos for every intermediate pupil, the same to be computed for the school year

1963-1964 on the basis of the enrollment as of March, 1963: provided, further, that in

every subsequent school year, an additional sum shall be appropriated and added to

the said amount which shall be the product of two pesos multiplied by the number of
intermediate pupils enrolled as of March of the preceding school year which is in excess

of the number of such pupils enrolled as of March, 1963.

Sec. 4. This Act shall take effect upon its approval.

Approved: June 19, 1964

In this discussion, Concepts on TAXATION in the educational sector will be

discussed its importance, definition and roles in the finance sourcing system.

TAXATION

It is the process by which the sovereign, through its lawmaking body, raises

revenues used to defray expenses of government. It is a way of the government in

increasing its revenue under the authority of the law, purposely used to promote

welfare and protection of its citizenry. It is the collection of a share of individual and

organizational income by a government under the authority of the law

CONCEPT OF TAXATION

Taxation is the inherent power of the state to impose and demand contribution

upon persons, properties, or rights for the purposes of generating revenues for public

purposes. This power is legislative in nature and is essential to the existence of any

independent government.
PRINCIPLES AND THEORIES OF TAXATION

A. The Benefit Principle. This principle holds that individuals should be taxed in

proportion to the benefit they receive from the government.

B. The Ability-To-Pay Principle. This principle holds that taxes should relate with the

people’s income or ability to pay.

C. The Equal Distribution Principle. The principle holds that income, wealth, and

transaction should be taxed at fixed percentage.

STRUCTURES OF A TAX SYSTEM

1. A tax is proportional

- A proportional tax means that the government takes an amount of money

from a person which is in proportion to his/her income.

2. A tax is regressive

- A regressive tax means that the government takes a larger percentage of

a person’s income for tax while he is receiving a lower income.

3. A tax is progressive.

- A progressive tax means that the government takes a larger percentage of

a person’s salary for tax due to his high salary.

ESSENTIAL CHARACTERISTICS OF TAX

a. It is an enforced contribution

b. It is generally payable in cash

c. It is proportionate in character
 d. It is levied on person or property

e. It is levied by the state which has jurisdiction over the person or property

f. It is levied by the lawmaking body of the state

g. It is levied for public purposes

BASIC PRINCIPLES OF A SOUND TAX SYSTEM

1. Fiscal Adequacy

- It means that sources of revenue taken as a whole should be sufficient to

meet the expanding expenditures of the government.

2. Equality or Theoretical Justice.

- It means that taxes levied must be based upon the ability of the citizen to

pay.

3. Administrative Feasibility

- It means that taxes should be clear and plain to tax payers.

4. Consistency or Compatibility with Economic goals

- It refers to tax laws that should be consistent with the economic goals.

CLASSIFICATION OF TAXES

1. As to subject matter

a. Personal/Poll/Capitation Tax
This tax means that there is a fixed amount upon all persons residing within a specified

territory with no regards to their property or occupation. (e.g., Residence Tax)

b. Property Tax

This tax refers to one assessed on all property located within a certain territory

on a specified date in proportion to its value. (e.g., Real Estate Tax)

c. Excise Tax.

This tax embraces any form of burden not laid directly upon person or property.

(e.g., Value-Added Tax/VAT) VAT is a form of sales tax. It is an indirect tax

levied upon the consumption of the sale of goods and services and on the

imports of goods into the country.

2. As to who bears the burden

A. Direct Tax

This tax refers to the tax which is demanded from an individual who tends to

buy or purchase a good or service. (e.g., Income Tax)

B. Indirect Tax

This refers to the tax paid primarily by a person who can shift the burden upon

someone else. (e.g., VAT)

3. As to determination of account

A. Specific Tax
 This tax is fixed or determinate sum imposed by the head or number or some

standard of weight and measurement, and requires no assessment beyond

listing and classification. (e.g., Taxes on wines)

B. Ad Valorem Tax

This tax is fixed proportionate with the value of the property and requires

the intervention of assessors before the amount due from each taxpayer. (e.g.,

Real Estate Tax)

4. As to purpose

1. General Tax

It refers to the tax levied to an individual for a general public purpose.

2. Special Tax.

It refers to the tax levied to an individual for a particular or specific

purpose.

5. As to scope

1. National Tax

It refers to the tax imposed by the state itself and is effective within the entire

jurisdiction thereof.

2. Local Tax

It refers to the tax imposed by a political subdivision of the state and is

effective only within the territorial boundaries thereof.

SITUS OF TAXATION

“Situs” is a Latin term which means “situation,” “location,” or “place.” its literal

meaning refers to place on taxation. In real property, the rule is “tax is imposed to a

place or state where the property is located, subject to be taxed, has a jurisdiction over

the said property in movable property taxation, the rule is “tax imposed to movables

follow the law person.

CONCEPT OF DOUBLE TAXATION The two concepts of double taxation are:

Direct Duplicate

Indirect Duplicate

1. Direct Duplicate has the following elements:

Taxing twice

By the same taxing authority

Within the same taxing jurisdiction

For the same purpose

In the same taxable period

Involving the same purpose

2. Indirect duplicate taxation, on the other hand, occurs when taxes on the

property are not imposed by the same taxing authority

FORMS OF ESCAPE FROM TAXATION

1. Shifting

- It is one way of passing the burden of tax from one person to another.

Kinds of shifting:

A. Forward Shifting occurs when the burden of the tax is transferred from a

factor of production to the factor of distribution

B. Backward Shifting occurs when the burden of the tax is transferred from

the consumer to the producer or manufacturer

C. Onward Shifting occurs when tax is shifted to two or more times either

forward or backward

2. Capitalization

- This refers to the reduction in the price of the taxed object to the capitalized

value of future taxes which the purchaser expects to be called upon to pay

3. Transformation

- It occurs when the manufacturer or producer upon whom the tax has been

imposed pays the tax and endeavor to recoup himself by improving his process of

production.

4. Tax Evasion

- It is the practice by taxpayers through illegal means to defeat or lessen the

amount for tax.

5. Tax Avoidance
 - It is the exploitation by the taxpayer of legally permissible methods in order to

avoid or reduce tax liability.

6. Tax Exemption

- It is the grant of immunity or freedom from financial charge, obligation, or

burden to which others are subjected.

Grounds for Tax Exemption

A. Contract

B. Public policy

C. Reciprocity

KINDS OF TAXES UNDER EXISTING LAWS

1. National Taxes

- These are taxes imposed by the national government.

- National Internal Revenue Code

A. Income Tax

-Tax on person’s income in one taxable year.

B. Estate Tax

- Tax on the right of the deceased person to transmit his/her estate

to his/her lawful heirs and beneficiaries

C. Donor’s Tax

- Tax derived from donations/testamentary disposition

 C.1. Inter Vivos (made between living persons; effective

during the lifetime of the donor)

C.2. Mortis Cansa

(made in the nature of testamentary disposition; effective

upon the death of the donor)

2. Value-Added Tax

Tax levied on the sales, barter, exchange, or lease of goods, properties, and

services, and on the importation of goods. (12%)

3. Withholding Tax on Compensation

Tax from income payment to individual arising from employer-employee

relationship.

4. Excise Tax

Tax imposed on certain specified goods manufactured/produced inside the country

for domestic purposes

5. Documentary Stamp Taxes

Tax on documents, instruments, and papers evidencing the acceptance,

assignment, sale/transfer of an obligation right of property

6. Customs Duties

Tax levied on all articles imposed in the country

7. Travel Tax
 Tax imposed by the government on persons who are leaving the country regardless

of the country where the air ticket is issued.

8. Energy Tax

Tax imposed to discourage uneconomic consumption of fuel Electric Power

Consumption. Tax imposed on the monthly consumption of every residential customer.

9. Private Motor Vehicle Tax

Tax that was issued to rationalize the structure of tax on private motor vehicle by

basing the same on ability to pay of the owners

10. Local Taxes

These are taxes imposed by the local government.

DIFFERENT AUTHORITIES IN IMPOSING TAX

National Government

This refers to the national government imposing tax.

A. Municipal or Local Government

-This refers to the municipal or the

B. local government or a public corporation imposing tax.

CLASSIFICATION OF TAXPAYERS

A. Individual Taxpayer

-Resident Citizens
 -Non-resident Citizens

Resident Aliens

Non-resident Aliens

B. Corporate Taxpayer

- Domestic Corporation

- Foreign

- Resident Corporation

- Non-resident Corporation

C. General Professional Partnership

- CPA

- Lawyer

PUBLIC OFFICER IN CHARGE OF TAX COLLECTION

A. Finance Secretary

B. Commissioner on Internal Revenue

C. Commissioner of Customs

D. Provincial Treasurer

E. City Treasurer

F. Municipal Treasurer
TAX REMEDIES OF THE GOVERNMENT AND TAXPAYERS

1. Distraint/Distress

This refers to seizure by the government of personal property, tangible or

intangible, to enforce the payment of taxes.

A. Actual Distraint

The government takes the property from the taxpayer’s possession

which involves physical transfer.

B. Constructive Distraint

The possession remains with the taxpayer but he is not allowed to

dispose the said property subject of distrain.

C. Levy

This pertains to the same act of seizure but of real property in order to

enforce the payment of taxes.

D. Forfeiture

This pertains to divestiture of a property without compensation in

consequent of a default or offense.

E. Compromise

This pertains to a contract whereby parties avoid litigation.

INCOME TAXATION

Income

- refers to all wealth which flows into the taxpayer other than as mere return on

capital. Capital, on the other hand, refers to the investment made which is the source

of income.

Income Tax

- refers to the tax imposed on the net income or the entire income received by a

taxpayer in one taxable period.

Gross Income

- refers to all income from whatever source but not excluding exempt income and

the income subject to final income tax. (e.g., salaries and wages, commission, rents,

etc.) Exclusion from gross income are those of: Life insurance, compensation,

retirement benefits, etc. Deductions are those amounts which the law allows to be

deducted from the gross income to arrive at taxable income.

Taxable Income

- refers to a pertinent item of gross income specified in the tax code less deduction

of personal and/or exemptions.

Net Income refers to the gross income less allowable deductions.

STATUS OF TAXPAYERS

A. Single

- It refers to an individual who is unmarried. He/she may also be widowed or a

married individual but judicially decreed as legally separated or annulled with no

qualified dependents.

B. Head of the Family

- It refers to an unmarried or legally separated man or woman with one or both

dependents.

C. Married

Conclusion

The primary purpose of taxation is to generate funds/revenues that can be used

to defray expenses incurred by the government in promoting the general welfare of

its citizenry. Taxes are the major source of government income. Taxes are the

lifeblood of a nation. Other purposes of taxation includes:a.) To equitably contribute

to the wealth of nation b.)To protect new industries

c.) To protect local producers

GRANTS, GIFTS, ENDOWMENTS AND TRUSTS

Over the last decade, the Government of the Philippines has embarked on an

ambitious education reform program to ensure that all Filipinos have the opportunity to
obtain the skills that they need to play a full and productive role on society. The

government has backed up these reforms, particularly over the last five years, with

substantial increases in investments in the sector.

In this discussion, grants, gifts, endowment and trusts in the educational sector

will be discussed its importance, definition and roles in the finance sourcing system.

Finance Sourcing System

Financing- is the process of providing funds for business activities, making purchases

or investing. The use of financing is vital in any economic system.

Funding Source- consists of financial resources of the government set aside for

specific purposes to finance specific programs and projects of the government. These

include the following:

What Is a Government Grant?

A government grant is a financial award given by the federal, state, or local

government authority for a beneficial project of some sort. It is effectively a gift: It

does not include technical assistance or other financial assistance, such as a loan or

loan guarantee, an interest rate subsidy, direct appropriation, or revenue sharing.

The grantee is not expected to repay the money.

Grants and scholarships are often called “gift aid” because they are free money—

financial aid that doesn’t have to be repaid. Grants are often need-based, while

scholarships are usually merit-based.   

Gifts

Gifts, bequests and donations are awards given with few or no conditions specified.

Gifts may be provided to establish an endowment or to provide direct support for an

existing program. Frequently, gifts are used to support developing programs for which

other funding is not available. The unique flexibility, or lack of restrictions, makes gifts

attractive sources of support.

General Characteristics of Gifts

1. Donor receives nothing in return

2. No contractual obligations

3. Awarded irrevocably (i.e. balance is never return to the owner)

4. Voluntary transfer

5. No specified performance period

What is an Endowment Fund?

An endowment fund is an investment fund established by a foundation that

makes consistent withdrawals from invested capital. The capital in endowment funds,

often used by universities, nonprofit organizations, churches and hospitals, is generally

utilized for specific needs or to further a company’s operating process. Endowment

funds are typically funded entirely by donations that are deductible for the donors.
 Endowments are permanent assets -- money, securities, or property -- that are

invested to earn income that is used to support an organization's activities. There are

numerous reasons why an organization would wish to create an endowment. These

include:

Sustainability -- An endowment can enhance the ability to plan for the long-

term and to meet the future needs of constituents.

Autonomy -- An endowment can increase an organization's independence from

funding trends outside its control.

Leveraging -- An endowment can be used as a basis for acquiring additional

funding.

Endowment …

Sources of Funding for Endowments

There are multiple places where organizations can turn in order to raise funds for

an endowment. At the local level, there is potential for raising endowment funds from:

• government or public sources

 • the private sector

• wealthy individuals

• membership fees

• the general public

• earned income

Three Types of Endowments

• True or permanent

o The donor has stated the gift is to be held permanently as an

endowment

• Quasi (funds functioning as endowment)

o The board of directors has designated organizational funds to the

endowment

• Term

o Funds set aside to act as endowment for a set period of years or

until a future event

Endowment ≠ Planned Giving

Education Funding – Philippines

• Education Funding is an option for students to support their education financially

through various schemes and methods. It can be provided by the government,

private agencies or even through personal methods such as the part time job.

• What is Education Funding?

Education Funding refers to the financial support that is provided to the students

for their education. These funds are given by both the private and government

agencies and can be allocated for long term and short term purposes.

It is also important to note that different colleges have different procedures of

funding, which may also vary according to the course. The process of scholarships

and funding are very competitive and before deciding the college, it is important for

the students to ensure that they have all the required documents to get the

Education Funds.
The Education Funds can be received at any level of education, from K-12 to

Masters and Doctorate.

How to avail the funding?

In order to avail funding, the students need to decide on the kind of Education

Funds they require or the one they are eligible for. Before taking a decision, it is

very important for the students to take proper advice from their parents or

guardians. Furthermore, students may also inform their college and then apply for

the respective Educational Funding.

Students may also refer to the Financial Aid counselor present in the college in

which they take an admission.  

In order to get specific funds, the students should also remain updated with

important dates, deadlines, submission forms and documents that are required.

Moreover, the information that is to be provided should be correct and up to date.

What are the types of Educational Funds that are available?

• Listed below are various methods that provide education funds to the students:

Sponsorship

• Scholarship

• Education Loans
 • Aids and Grants

• Part time Jobs

What Is a Trust Fund?

A trust fund is an estate planning tool that is legally established to hold property or

assets for a person or organization, managed by a trustee, who is a neutral third party.

Trust funds can hold a variety of assets such as money, property, stock, a business, or

a combination of many different properties or assets.

How Trust Funds Work?

• There are three key parties that comprise a trust fund

• —grantor (sets up a trust and populates it with their assets), 

• beneficiary (a person chosen to receive the trust fund assets), and 

• trustee (charged with managing the assets in the trust)

What is a Grantor?

• A grantor, or writer, is the seller of either call or put options who collects the

premiums for which the options are sold. Options are sold through exchanges to

option holders who are responsible for the payment of the premium.

What Is a Trustee?

A trustee is a person or firm that holds and administers property or assets for the

benefit of a third party. A trustee may be appointed for a wide variety of purposes, such
as in the case of bankruptcy, for a charity, for a trust fund, or for certain types of

retirement plans or pensions. Trustees are trusted to make decisions in the beneficiary's

best interests and often have a fiduciary responsibility to the trust beneficiaries.

What Is a Beneficiary of Trust?

• A beneficiary of trust is the individual or group of individuals for whom a trust is

created. The trust creator or grantor designates beneficiaries and a trustee, who

has a fiduciary duty to manage trust assets in the best interests of beneficiaries

as outlined in the trust agreement

Here are some steps to take in funding our children’s college education:

• Consider where we want our children to study.

• Inquire its current tuition fee cost.

• Finding out our child’s current age to be able to know how many years will it

take for us to save before our child enters college.

• Multiply total cost by the inflation factor rate of 10% corresponding to the

number of years before our child enters college.

• Compute how much we would need to save and invest at present until our child

enters college.

• Look for an investment tool that will help grow our money to meet our target

fund in the most accurate possible.

CHED’s P11.6B budget cut may hurt 2020 free tuition, scholarship programs
 • CHED’s proposed budget for 2020 was P40.78 billion, almost 23 percent or 11.65

billion lowered compared to the agency’s P52.43 billion budget for 2019.

• CHED’s proposed budget for 2020 was P40.78 billion, almost 23 percent or 11.65

billion lowered compared to the agency’s P52.43 billion budget for 2019.

Conclusion

"(School-based management) grants play a great role in order to improve the

quality of education delivered to our learners. If all the teachers and stakeholders

are fully aware of their roles and functions and have the proper direction on how to

do and achieve it, quality education and high productivity can be achieved.“

LOAN ASSISTANCE

What is a Loan?

 A loan is when you receive money from a friend, bank or financial institution in

exchange for future repayment of the principal, plus interest. The principal is

the amount you borrowed, and the interest is the amount charged for receiving

the loan. Since lenders are taking a risk that you may not repay the loan, they

have to offset that risk by charging a fee - known as interest. Loans typically

are secured or unsecured. A secured loan involves pledging an asset (such as

a car, boat or house) as collateral for the loan. If the borrower defaults, or

doesn't pay back the loan, the lender takes possession of the asset. An
 unsecured loan option is preferred, but not as common. If the borrower doesn't

pay back the unsecured loan, the lender doesn't have the right to take anything

in

Loans are used for many reasons;

 Feed, seed and fertilizer purchases

 Machinery,livestock,and equipment purchases

 Land ,building,and home purchases

 Business start up expenses like attorney fees,incorporation fees, and product

development costs

 Emergencies

Types of Loans

1. Personal loans - You can get these loans at almost any bank. The good news is

that you can usually spend the money however you like. You might go on

vacation, buy a jet ski or get a new television. Personal loans are often

unsecured and fairly easy to get if you have average credit history. The

downside is that they are usually for small amounts, typically not going over

$5,000, and the interest rates are higher than secured loans.

2. Cash advances - If you are in a pinch and need money quickly, cash advances

from your credit card company or other payday loan institutions are an option.
 These loans are easy to get, but can have extremely high interest rates. They

usually are only for small amounts: typically $1,000 or less. These loans should

really only be considered when there are no other alternative ways to get

money.

3. Student loans - These are great ways to help finance a college education. The

interest rates are very reasonable, and you usually don't have to pay the loans

back while you are a full-time college student.

4. Mortgage loans - This is most likely the biggest loan you will ever get! If you

are looking to purchase your first home or some form of real estate, this is likely

the best option. These loans are secured by the house or property you are

buying. That means if you don't make your payments in a timely manner, the

bank or lender can take your house or property back! Mortgages help people get

into homes that would otherwise take years to save for. They are often

structured in 10-, 15- or 30-year terms, and the interest you pay is tax-

deductible and fairly low compared to other loans.

5. Home-equity loans and lines of credit - Homeowners can borrow against

equity they have in their house with these types of loans. The equity or loan

amount would be the difference between the appraised value of your home and

the amount you still owe on your mortgage. These loans are good for home
 additions, home improvements or debt consolidation. The interest rate is often

tax deductible and also fairly low compared to other loans.

SELF-GENERATION

Money has been said as the lifeblood of an organization. An organization would

not live and survive unless there’s a fund that it can use for all its needed activities, to

sustain the needs of the members and of the materials needed in the organization, and

for the success of its programs and projects. The same is with our schools. A school in

order to attain its goals and objectives and to make its mission and vision be realized a

fund is one big factor to be considered. In public schools we have the Maintenance and

Other Operating Expense (MOOE), which comes from our national fund, Special

Education Fund (SEF) that comes from the local budget etc; then tuition fees and

government assistance for the private schools, but still it is not enough for the

organization (school) to work and live continuously so its option is to find ways in order

to have more funds for the organization, thus, self-generation of fund.

Below are some self-generation activities observed from our schools, especially in

public schools:

1. Income Generating Project (IGP)

 It is used to describe an activity that makes money to finance a program or a

project. In Public schools they generate their income through IGP to be able to:

1. Improve school facilities

2. Offer scholarships to poor children

3. Finance a project for innovation in school

Income generating products include:

1. Horticulture: vegetable, herbs, spices, nut

plants/seedlings/condiments/pickles/peanut butter/dried herbs;

2. Fruits-jam/juice/fruit wine; cash crops-coffee/cocoa; flowers; mushrooms;

trees-furniture;

3. Facility based-services

4. Eco-tourism: school shop; processing facilities; school-run enterprise

2. School Canteen

The net income derived from the operation of the school canteen shall be utilized

for, but not limited to the following:

Supplementary feeding program for undernourished pupils/students – 35%

School clinic fund – 5%

Faculty and student development fund -15%

H.E. instructional fund – 10%

 School operations fund – 25%

Revolving capital – 10 %

3. Fund Raising

DepEd Order No. 73 s. 1985 entitled as Discouraging/Limiting

Gatherings/Meetings of Teacehrs and Students and Fund-raising Activities intended for

School purposes states that Fund-raising activities intended for school purposes,

including especially the raising of funds from teachers and students for the construction

of office buildings, schoolrooms, toilets, paths or walks, gates and pergolas, canteen

buildings, procurement of desks or equipment, and the like is being discouraged or

strictly limited but despite of the said order fund raising activities are still conducted by

some schools, i.e. through their parents or the PTA. DepEd Order No. 54 s. 2009

( Revised Guidelines Governing Parents-Teachers Associations at the School Level)

states that one of the privileges of Recognized PTAs is “Authorization to undertake

fund-raising activities to support the school’s academic and co-curricular programs,

projects and activities subject to pertinent DepEd guidelines.”

4. Solicitation Letter
 Solicitation letter is used for getting donations and fund raising for some event

by

organizations. It is used for sending request to some organization to raise fund

for the charity work and welfare organizations.

DepEd Order No. 5, s. 1992 known as Policy on Solicitation of

Contributions states that  to request/solicit monetary contributions especially from

teachers or students for any programs, projects, meets, etc. for which no funds are

available or allocated is Prohibited and violations will be subject to penalty such as

administrative charges but DepEd recognized stakeholders as its partners in progress

and we find letters as channels of our communication with them when we ask for help.

Synthesis

As the gap between funding allocation and school expenses grows, those

responsible for delivering education in the public sector need to think more innovatively

and creatively about how they might bridge the gap to ensure educational outcomes

are not compromised.

The generation of additional income is no longer a question of choice – it is increasingly

becoming a necessity and is perceived by many sector leaders as being an essential tool

with which to ‘oil the wheels’ and sustain excellence and ongoing improvements in

learning.