APPENDIX A: Pertaining to incorporating American charities, and the tax deductible donations that these can receive.

Appendix C: Estimating donatable taxes of individuals (such as medical OFW-s).

APPENDIX A: Pertaining to incorporating American charities, and the tax deductible donations that these can receive.

Thus, see: http://www.501c3.org/ for how organizations such as KAPAMILYA IN AMERICA, INC. can take care of the registration paperwork. (Efficiency and costs vary for this service, but one can shop around.) Thus: a Google search on the key words "IRS", "501(c)", etc.

To see the actual paperwork involved (and have an idea of what the requirements and privileges that go with being an American charity) see: http://www.irs.gov/charities/charitable/article/0,,id=136459,00.html (click on the "lifecycle"links at first, then follow the steps...)

An IMPORTANT technicality: Donations to a registered charity can only become "tax deductible" if specific tax forms, that ITEMIZE deductions are filed!!! http://taxes.about.com/od/deductionscredits/a/CharityDonation.htm

For example, people who are in the process of buying a house can potentially lower their tax bill outlay by itemizing. See: http://financialplan.about.com/od/taxplanning/a/ItemizingTaxes.htm .

In any event, tax preparation software is at times free or available at low cost. KAPAMILYA IN AMERICA, INC. could offer tax preparation assistance to prospective donors, to benefit both: the donor and the charity.

People in the USA can not directly make donations to charities located outside the country. (Hence, the need to establish the "intermediate" charities: the Philippine-American Medical Fund and the Philippine-American Assistance Group.) Further: Individuals are allowed to donate (at least) 20% of their AGI...the "adjusted gross income" category on their itemizing tax form. Corporations can donate 10% of their total federal income tax obligation to a registered charity.

APPENDIX B: Pertaining to STAKE HOLDERS of KAPAMILYA MEDICAL SCIENTIFIC CHARITY, INC..

Lenders: On a rolling basis, 25% of received funds will be dedicated to debt repayment. (This should be more than adequate!)

Donors: Truthful description of KAPAMILYA MEDICAL AND SCIENTIFIC CHARITY, INC.. Timely issuance of receipts. Consideration of suggestions on possible services offered and their method of delivery.

Donees: There will be an ongoing effort to minimize paperwork and expand services. Also: The service providers to patients are also to be considered as potential recipients of the charity's efforts to improve the health care delivery in the RP.

Regulatory Agencies: Transparency, accountability and compliance.

Employees: Clearly defined job functions, with employee suggestions considered.

Regions of interest: As a national organization, KAPAMILYA MEDICAL AND SCIENTIFIC CHARITY, INC. will seek to actively address health issues in all Regions.

Areas/types of health care issues: Recognizing that resources are always limited, the Board of Directors will constantly review its directives to assure effective utilization of funds.

Volunteers: Appreciation and integration.

Appendix C: Estimating donatable taxes of individuals (such as medical OFW-s).

Medical OFW-s in the USA may have various citizenship and tax status classification. For the most part, they are taxed the same as USA citizens. See: http://www.thetaxguy.com/faq.htm , and the FAQ questions there about H-4 and H-1b visas, the "substantial presence" test used by the American Internal Revene Service for tax status determination, dual citizenship, nonresident alien status, etc..

Since it is difficult to obtain exact statistics on all OFW-s, we will use the following, simplified method to calculate the AGI (Adjusted Gross Income) category for that is the basis for donating taxes.

Via visa allowances, there are 60,000 nurses and 20,000 doctors that are employed in the USA as OFW-s today (2009). Nurses can elect to file a "non-itemising" tax form, since their income is unlikely to be above $100,000. (Nurse average pay is around $65,000.) If people avail of this easy payment option (taxform 1040EZ), they can not donate to a charity. However, the more complicated (itemizing) tax form [1040] is essentially available to all OFW-s. Doctors, with their income being over $100,000 have to use 1040.

People using 1040 with less than $150,000 income can donate 20% of their AGI to registered charities. In practice, KAPAMILYA IN AMERICA, INC. will only solicit a 15% donation of the AGI from this income group. This, since at a larger percentage donated, the amount given to the charity might exceed their tax obligation, taking away funds from their disgressionary income.

For the OFW group with income over $150,000 a year, there is a complicated formula as to how much they can donate to registered charities. Again, using 15% of the AGI for donations only to the Philippine-American Medical Fund, the amounts donated by this group fulfill the category requirements as to how much can be donated by regulations. (All individal cases will be verified by tax professionals, before KAPAMILYA IN AMERICA, INC. will issue the required receipts; so that in no case will donors lose disgressionary funds, or have their tax forms wrongly completed.)

The 15% AGI used in calculations also takes into account donor psychology... It is easier to sign a smaller check, than a larger one. [Hence, the likelihood of an actual, first time donation.] ...For increased revenues for the charity, it is more advisable to contact more potential donors, rather than to ask for larger funds from OFW-s.

Via a similar logic: PHILIPPINE AMERICAN ASSISTANCE GROUP, INC. will not seek all of the 10% of the donatable taxes of the multinational corporation's American taxes. They might already have in place other donations to various charities, other than the PHILIPPINE AMERICAN ASSISTANCE GROUP, INC.. In any event, smaller donations are more easily granted, than large ones.

(Back to the Index)

We have, in America the PHILIPPINE AMERICAN ASSISTANCE GROUP, INC. (with a focus on corporate donors), and KAPAMILYA IN AMERICA, INC. (whose focus is on individual donors, members of associations, and small businesses). In the Philippines, there is only one charity organized: the KAPAMILYA MEDICAL AND SCIENTIFIC CHARITY, INC.. However, the two Divisions of KMSCI are so different (the Medical Needs Division and the Science Division) that they are essentially two linked, but separate entities.

As mentioned elsewhere, KAPAMILYA MEDICAL AND SCIENTIFIC CHARITY, INC. -s Medical Needs Division is under the jurisdiction of the (Philippine) Department of Social Welfare and Development (DSWD). The DSWD has a very nice template (and associated forms) to organize the associations that they oversee. Their main tool is the (required) Manual of Operation, reproduced below [in as far as it relates to our combined operations, in general]. Similarly to our association with the DSWD (and using their organizational trmplate), we benefit from our proposed association with the (Philippine Department of Health's) Bureau of International Health Cooperation. They provide infrastructure assistance to International projects. Some of these BIHC services (of which we will be able to avail) will be listed, following the DSWD Manual template.

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I. INTRODUCTION / RATIONALE

1, HISTORY OF THE ESTABLISHMENT OF THE AGENCY.
2, THE SITUATION OF THE TARGETED COMMUNITY THE AGENCY WANTS TO ADDRESS. IT SHOULD ANSWER THE QUESTION: WHY IS THERE A NEED TO OPERATE. INCLUDE STATISTICS, ISSUES, CHALLENGES, ETC..

II. VISION / MISSION AND GOALS / OBJECTIVES OF THE AGENCY.

1, EXPLICITLY STATE THE VISION AND MISSION OF THE AGENCY.

2, STATE THE GOALS OF THE AGENCY.

* GOAL(S) IS / ARE BROAD STATEMENTS OF INTENT AND DESIRED LONG TERM OUTCOMES OF PROGRAMS IN ORDER TO ACHIEVE THE MISSION

3, STATE THE OBJECTIVES OF THE AGENCY:

* THE OBJECTIVE SHOULD BE SPECIFIC, MEASURABLE, ATTAINABLE, RESULT ORIENTED AND TIME BOUNDED.

* OBJECTIVES ARE THE DESIRED SHORT TERM OUTCOMES. THESE MAY EXPRESS IMMEDIATE MEANS TOWARDS WHICH EFFORTS ARE DIRECTED IN ORDER TO ATTAIN THE GOAL.

III. CLIENTELE / BENEFICIARIES

THE AGENCY'S FOCUS IS ON SPECIFIC CLIENTELE / BENEFICIARIES IT INTENDS TO INTERACT WITH, CONSIDERING THE AGENCY'S VISION, MISSION, AND GOALS (VMG) AND RESOURCES.

IV, GEOGRAPHICAL COVERAGE OF OPERATION.

* "GEOGRAPHICAL COVERAGE OF OPERATION" IS TO REFER TO EITHER DIRECT OR INDIRECT IMPLEMENTATION OF THE AGENCY'S PROGRAMS AND SERVICES WITHIN A SPECIFIED GEOGRAPHICAL COVERAGE OR PLACE, OVER A PERIOD OF TIME --- USING ITS OWN OR TAPPED RESOURCES AND CONDUITS.

V, GENERAL POLICIES

A POLICY IS A DEFINITE COURSE OF ACTION SELECTED FROM AMONG ALTERNATIVES

AND IN LIGHT OF GIVEN CONDITIONS TO GUIDE AND DETERMINE PRESENT AND FUTURE

DECISIONS. IT MUST BE BASED ON AND DEVELOPED IN CONSIDERATION OF THE AGENCY'S

VMG.

THE AGENCY'S POLICIES FOR ORGANIZATION, ADMINISTRATION AND MANAGEMENT AND

PROGRAMS AND SERVICES MUST BE STATED.

VI, PROGRAMS AND SERVICES

A PROGRAM IS A COORDINATED GROUP OF ACTIVITIES MAINTAINED OVER A PERIOD

OF TIME AIMED AT PRODUCING SPECIFIC TYPES OF SERVICES, DIRECTED TO THE

ACHIEVEMENT OF AN OBJECTIVE OR A SET OF OBJECTIVES.

A SERVICE IS A SET OF SPECIFIC ACTIVITIES PROVIDED BY THE AGENCY TO

CONCRETELY ANSWER THE NEEDS AND PROBLEMS OF A TARGET CLIENTELE

1, THE AGENCY'S PROGRAMS AND SERVICES MUST BE DESIGNED TO ACHIEVE AGENCY

OBJECTIVES

2, THE PROGRAMS AND SERVICES SHOULD BE DESCRIBED IN DETAIL

3, SPECIFIC PROCEDURES AND IMPLEMENTING GUIDELINES OF THE PROGRAMS AND

SERVICES SHOULD BE STATED INCLUDING CORRESPONDING STRUCTURES AND SYSTEMS OF

THE ORGANIZATION RESPONSIBLE IN EVERY PHASE OR COMPONENT OF THE PROGRAMS AND

SERVICES.

FURTHER, PROCESS / CASE MANAGEMENT SYSTEM IN PROVIDING SERVICES TO THE TARGET BENEFICIARIES FROM THE INITIAL ASSESSMENT TO TERMINATION AND FOLLOW-UP SHALL ALSO BE INDICATED, AS APPROPRIATE.

VII, ORGANIZATION AND ADMINISTRATION

1, THE ORGANIZATIONAL STRUCTURE OF THE AGENCY MUST PROVIDE A CLEAR DEFINITION OF

RESPONSIBILITIES AND DUTIES OF THE GOVERNING BODY, IT'S MANAGEMENT PERSONNEL

AND IT'S SERVICE RESPONSIBILITIES.

RELATIONS BETWEEN & AMONG PERSONS & FUNCTIONS MUST BE DESCRIBED.

2, THE ORGANIZATIONAL CHART SHOULD INDICATE FLOW OF WORK AND OTHER ACTIVITIES.

3, POLICIES AND SYSTEMS OF THE AGENCY, IN TERMS OFADMINISTRATION MUST BE STATED.

SOME AREAS TO BE CONSIDERED ARE:

* PERSONNEL /HUMAN MANAGEMENT / DEVELOPMENT

* FINANCIAL MANAGEMENT

* PROPERTY AND SUPPLIES MANAGEMENT

* COMMUNICATION & INFORMATION SYSTEM

VIII PERSONNEL

1, ENUMERATE EACH POSITION, STATING JOB TITLE, QUALIFICATION STANDARD, JOB

DESCRIPTION & AREA(S) OF RESPONSIBILITY

2, STATE CORRESPONDING SALARIES, HONORARIUMS AND BENEFITS TO BE RECEIVED BY

EACH EMPLOYEE AND / OR VOLUNTEERS... AND AREAS OF RESPONSIBILITIES

3, STATE THE NUMBER OF PERSONNEL PER PROGRAM OR ORGANIZATIONAL FUNCTION

4, NOTE THAT THE NUMBER OF PERSONNEL MUST BE ADEQUATE IN ACCORDANCE WITH

APPROPRIATE STANDARDS.

5, THE AGENCY PERSONNEL MAY BE COMPOSED OF PAID STAFF OR VOLUNTEERS. SUCH MUST

BE INDICATED SPECIFICALLY IN THE MANUAL.

6, DESCRIBE HOW THE PERSONNEL IN THE ORGANIZATION ARE SUPERVISED; DESCRIBE THE

SYSTEM OF SUPERVISION.

IX, BUDGET

1,INDICATE THE AGENCY'S ANNUAL BUDGET

2, INDICATE THE AGENCY'S SOURCE(S) OF FUNDS, LOCAL AND / OR FOREIGN.

3, INDICATE CORRESPONDING FINANCIAL SUPPORT FOR SPECIFIC PROGRAMS, SERVICES AND

ACTIVITIES OF THE AGENCY.

X, MONITORING AND EVALUATION

1, DESCRIBE THE SYSTEM THAT THE AGENCY USES TO ENSURE THAT THE PROGRAMS AND

SERVICES ARE WELL IMPLEMENTED

2,ENUMERATE AND DESCRIBE THE METHODS AND TOOLS IN MONITORING AND EVALUATION;

EXPLAIN HOW THESE ARE USED OR ARE DONE IN THE CONTEXT OF THE ORGANIZATION

3, SPECIFY INDICATORS AND LOG FRAME TO HAVE A CLEAR MEASURE OF PROGRAM IMPACT AND

OUTCOME.

XI, REPORTING AND DOCUMENTATION

tHE ORGANIZATION MUST KEEP RECORDS OF ITS ACTIVITIES. THESE RECORDS PROVIDE

IMPORTANT INFORMATION TO THE AGENCY ESPECIALLY WHERE IT HAS TO MAKE DECISIONS

ABOUT EXPANDING, CHANGING OR TERMINATING PROGRAMS AND SERVICES AND FOR REPORTING TO THE COMMUNITY AND DONORS ON HOW FUNDS HAVE BEEN USED

1,DESCRIBE THE RECORDS SYSTEM OF THE AGENCY FOR:

* PROGRAMS AND SERVICES, AND....

* ORGANIZATIONAL / ADMINISTRATIVE FUNCTIONS

2, INDICATE EACH REPORT BEING MADE BY THE AGENCY FOR THE ABOVE-MENTIONED AREAS,

DESCRIBING ITS CONTENT, PURPOSE, USES AND FREQUENCY OF PREPARATION.

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Services provided by the BIHC

* Coordination between the governmental intra-inter agencies and non-governmental organizations

* Consultative meetings with donor agencies and program / client beneficiaries regarding project proposals and implementation.

* Drafting of Memorandum of Understanding between countries, international donors and local organizations.

* Monitoring and evaluating foreign funded projects.

* Provision of List of Contacts.

* Oversee / supervise the operation of projects with the Project Management Offices (PMO's).

* Undertake day to day management of ongoing projects without PMO's.

* Establish / maintain systems for Procurement Management and Finance Management.

* Monitor and Evaluate.

* Provide technical assistance on project management.

* Establish and maintain systems for monitoring / evaluation of project performance on various levels; evaluation of performance of project staff; evaluation of project consultants.

* Evaluate / recommend project staff / consultants for hiring.

* Manage / supervise the financial operation of projects.

* Manage / supervise the procurement of project goods, services and civil works.

* Supervise administrative concerns of Project Management Offices.

* Manage project funded contracts.

* Provide technical assistance on project management.

* Manage project management training courses.

* Establish and maintain coordination mechanisms with key project players.

* Establish / maintain a working filing and record keeping system.

* Prepare, allocate, disburse project funds.

TECHNICAL PAGE

APPENDIX A: Pertaining to incorporating American charities, and the tax deductible donations that these can receive.

To see the actual paperwork involved (and have an idea of what the requirements and privileges that go with being an American charity) see: http://www.irs.gov/charities/charitable/article/0,,id=136459,00.html (click on the "lifecycle"links at first, then follow the steps...)

An IMPORTANT technicality: Donations to a registered charity can only become "tax deductible" if specific tax forms, that ITEMIZE deductions are filed!!! http://taxes.about.com/od/deductionscredits/a/CharityDonation.htm

For example, people who are in the process of buying a house can potentially lower their tax bill outlay by itemizing. See: http://financialplan.about.com/od/taxplanning/a/ItemizingTaxes.htm .

In any event, tax preparation software is at times free or available at low cost. KAPAMILYA IN AMERICA, INC. could offer tax preparation assistance to prospective donors, to benefit both: the donor and the charity.

APPENDIX B: Pertaining to STAKE HOLDERS of KAPAMILYA MEDICAL SCIENTIFIC CHARITY, INC..

Lenders: On a rolling basis, 25% of received funds will be dedicated to debt repayment. (This should be more than adequate!)

Donors: Truthful description of KAPAMILYA MEDICAL AND SCIENTIFIC CHARITY, INC.. Timely issuance of receipts. Consideration of suggestions on possible services offered and their method of delivery.

Donees: There will be an ongoing effort to minimize paperwork and expand services. Also: The service providers to patients are also to be considered as potential recipients of the charity's efforts to improve the health care delivery in the RP.

Regulatory Agencies: Transparency, accountability and compliance.

Employees: Clearly defined job functions, with employee suggestions considered.

Regions of interest: As a national organization, KAPAMILYA MEDICAL AND SCIENTIFIC CHARITY, INC. will seek to actively address health issues in all Regions.

Volunteers: Appreciation and integration.

Appendix C: Estimating donatable taxes of individuals (such as medical OFW-s).

Since it is difficult to obtain exact statistics on all OFW-s, we will use the following, simplified method to calculate the AGI (Adjusted Gross Income) category for that is the basis for donating taxes.

(Back to the Index)