Case Study

A

Case Study

On

Fundraising System of Mariphil Foundation

In Panabo, Davao City

Presented to the Faculty of

COLLEGE OF ACCOUNTING EDUCATION

University of Mindanao

By:

Jaylen E. Cainoy

Irene G. Bocado

Juliet G. Antimor

Stephanie C. Apusen

Jeniffer G. Pamplona

Kressa Mae T. Payot

May 20, 2013

Table of Contents

Title Page iTable of Contents iiAcceptance and Approval iiiAcknowledgement ivAbstract v

Chapter I Statement of the Problem 1

Problematic SituationObjectives of the Study

Chapter II Statement of Facts 2

Business ProfileBackground of the Case

Chapter III Methodology 5

Chapter IV Results and Discussions 6

Chapter V Conclusions 7

Chapter VI Recommendations 8

APPENDICES References 9Interviewer Guide QuestionsInterview Request letterDocumentationCurriculum Vitae

ACCEPTANCE AND APPROVAL

This Case Study entitled “Fundraising system of Mariphil Foundation in Purok

Takway, Panabo City” by Jaylen E. Cainoy, Irene G. Bocado, Juliet G. Antimor, Stephanie

Apusen, Jennifer Pamplona and Kressa Mae Payot in compliance with the requirements in the

Management Advisory Services 3 subject of the College of Accounting Education, University

of Mindanao, Matina Campus, Davao City is hereby accepted and approved.

ESTERLINA B. GEVERA, MBA, CPA

Dean, College of Accounting Education

ACKNOWLEDGEMENT

The researchers would like to extend their sincerest thanks to the people who have

helped this research possible.

Professor Joel B. Tan, CPA, MBA class adviser, for the guidance, imparted

knowledge, understanding, patience, encouragement and for helping us in our case study;

Their parents, for the guidance, for the emotional and financial support, and for giving

them unconditional love and encouragement to pursue this study, without them this work

would not have been realized; and

Above all, the Almighty Father, for the gift of wisdom, enlightenment, and His

constant guidance, and to the graces He bestowed upon us to finished this case study.

The Researchers

ABSTRACT

The objective of a Non-Profit Organization is to provide services to the community

without any monetary profits. They are considered as silent providers, with the interest of the

public and private wellbeing at heart. Many such organizations face various problems and

issues on a day to day as well as long term basis.

There are many challenges a non-profit organization faces when providing these

services. A crucial issue faced by the organization is that the money generated through the

office not being adequate to cover the expenses of the end result. Commercial aid is sort for

to overcome this issue, through grants, sponsorships and other means. In the recent past,

funding from local establishments and governmental authorities have stipulated certain

conditions when working with specific groups, thereby posing a huge burden for these

organizations. As the cost of meeting the need rises, the end user is also not in a position to

meet the extra expense.

This case study examined the fundraising system of a non-profit organization

Mariphil Foundation. By doing this study the proponents hope to know the fundraising issue

faced by the Mariphil Foundation. In addition to this, the proponents will understand how the

foundation used the funds for their projects and operations. The issues and problems that will

be discovered by the proponents will be tackled in this case study. In the end the proponents

will provide recommendations and solutions to these issues and problems that could help

improve the management system of the said foundation.

CHAPTER I

Statement of the Problem

Problematic Situation

Mariphil Foundation is a nonprofit organization which primary deals on helping those

deserving students to finish their studies through scholarship grants. More than 200 mariphil

scholars are being catered with a minimum budget of 5 million per year that are sponsored by

the foreign wealthy individual.

In addition to this, they established some projects such as Orphanage and Cooperative

for the welfare of the general public.Majority of the fundsfor their projects are financed by

theforeign government. Specifically, 75 % of the total cost for the project construction is

financed by the VMX or German Ministries and the 25% is provided by the hilfsprojekt.

Recently, Germany encountered economic financial crisis as a consequence there is

lower exchange rate in Euro to Peso.In addition to this, the president of Mariphil foundation

in the Philippines is the one who has the custody of funds and is the only one authorized for

the disbursement of funds.

Given this aforementioned fact, we would like to propose our study that aims to

investigate how does the Mariphil Foundation raise funds for their projects and support their

operations.

Specifically, the study seeks to attain the following objectives:

1) To determine the current problems and concerns face by the foundation in

relation to their fund raising activities.

2) To recommend strategies and other fund raising programs.

3) To evaluate the management performanceof the foundation.

CHAPTER II

Statement of the Facts

Business Profile

Hilfsprojekt-Mariphil was founded 2001 and its members are from different

educations and with different skills. All members believe in doing more for those, whose who

do have less prospects.

We see the needy humans and not their religion, colour, social or cultural

Background. For our Projects we trust in personally known people onsite.

Our Project-Region on Mindanao/Philippines are the districts of Carmen and Panabo,

approx. 50km north of Davao. Most of the approx. 200.000 People there are living on a

minimum living wage, without a real chance to get out of their situations by themselves.

Purpose of Incorporation:

To aid and assist in the development, maintenance, promotion and

preservation of the projektmariphil foundation inc., its members, officers and

staff

To promote the general welfare of the projektmariphil foundation inc. by such

proper means as may abvisable and operates exclusively as charitable

institutions

To promote the general welfare of the people in Davao

To assist Financially in school renovations, made repaire etc. that could be

benefitey by the general public

To hold a medical outreach program such as giving free medicines and etc. to

needy ones.

To send free to school to poor but deserving students.

To do and engage in lawful activities that is in furtherance of one or more of

the associations purposes.

Our project-area: Municipalities of Panabo-City and Carmen, Davao del Norte, Mindanao

Registered Adress: Purok1, Tibungol, Poblacion, Panabo-City, Davao

Board of Directors (2012):

President: Emeterio Blasé

Vice-President: Evie Rellon

Treasurer: Jenerose Aplaca

Secretary: Mary-Grace Cabaguing

Background of the Case Study

For nonprofit organizations, securing and sustaining funding is essential to survival.

Many nonprofit managers see government funding as ideal because of its perceived security

(Grønbjerg 1993; Froelich 1999). However, there is relatively little evidence to support the

claim that such funds actually make nonprofits more sustainable, and some research has even

suggested that nonprofits receiving “fickle” government funds are more likely to fail (Hager

et al. 2004). Non-profit business can suffer devastating blows to organizational success,

while striving for the organizational success there where instances that such organization face

many impediment. These challenges range from the incompetent staff, unrealistic

expectations and most specifically the handling of fund. Balancing a mission and funding is

what defines the not-for-profit organization and separates it from for-profit companies.

Furthermore a nonprofit spends much of its time and efforts attracting funds, often without

even selling a product.

Research studies on nonprofits suggest that there is a leadership capacity deficit in the

nonprofit sector. Nonprofit organizations need to build their leadership capacity and improve

their succession planning. The nonprofit sector has wonderful leaders and these leaders have

passionately participated in the sector’s growth over the years. Yet, some of these same

leaders find it difficult to guide the organization’s strategic plan and may not have a

succession plan in place. While leadership seats in these organizations may not be currently

vacant, a retirement or a quick departure from the organization could leave the nonprofit

organization empty-handed when it comes to leadership succession.

The primary purpose of this paper is to examine the relationship between organization

funding and nonprofit failure. Its secondary purpose is to understand the relationships

between failure, organization funding, and the causes for failure in the instability of the

funding source and low funding diversification especially on the management stream.

Chapter III

Methodology

This chapter presents the methods employed in the case analysis of the Mariphil

Foundation. It covers the respondents, the method off interview used and the type of

questionnaires given to the respondents.

Design

The case study used the interview method in gathering related information. This

method is deemed appropriate because it involves face to face interaction with the

respondents in collecting the background of the case subject, their activities and problems.

Guide questionnaires were used as a guide in interviewing the respondents.

Respondents

The respondents of this case study are the three top officers of the foundation namely:

Emeterio blasé, President; Arlene B. Ciruela, House Parent of the foundation; and Mary

Grace Cabaguing, Secretary. They were best fit as respondents because of their close

involvement in the foundation. They are the ones who are knowledgeable of the activities

inside the foundation, inclusion with that are the problems the foundation faces that are not

known by the public.

Data Gathering Procedure

The data for this case study were collected using interview with guide questions. The

guide questions were created using suitable questions modified from related case studies and

individual questions formed by the students. There were 11 questions which were related to

the respondent’s perception on the functions and issues of the foundation. The students

assured confidentiality of their interview. Respondents were given time to respond and no

incentives were offered for participating the interview.

CHAPTER IV

Results and Discussions

Based on the study conducted, the students found out that there was low internal

control primarily on the cash management, cash allocation and segregation of duties.

Furthermore, the students have discovered various lapses that the management has to focus

onto to prevent further damages. There is also lack of evidence as to where those funds go to.

Also, there is no project proposal done prior to the disbursement of funds to restrict theft

within the foundation. The foundation also doesn’t have its separate legal entity which they

could be able to use their funds for personal purposes. And lastly the students have observed

that the foundation is dependent to their foreign sponsor and not gain funds on their own.

Chapter V

Conclusion

We therefore conclude that in establishing a foundation it seems difficult to be part of

it. It is necessary to look for a ways on how to raise funds and where to ask for a financial

support. The Mariphil foundation has negotiated to the local government of Panabo for the

financial assistance in one of the Mariphil project specifically the orphanage. It is not

sufficient to rely on the support from other sponsors because a lot of factors are to be

considered. First, the financial stability of individualmust betaken into consideration because

not all the time you can depend on them. In addition to this is the economic factor especially

if the funds are financed by foreign individual because when crisis may arise the financial

capability of the individual sponsors will be affected. Thus, other fund raising activities are

important for the foundation to add on the funds needed for the continuous operation of the

non-profit organization

Furthermore, the management system of the foundation must be strategically planned

to have an efficient and productive operation. It is important to have a management planning,

controlling, directing as well as evaluating the performance in order to determine if the actual

activity is in accordance to what is being planned. The individual interest of individual who is

part of the management is also vital in the success of the foundation to have goal congruence

in order to achieve the primary purpose and objective of the organization.

CHAPTER VI

Recommendation

We students recommend to the management of the Mariphil Foundation the following actions

to help them in managing:

- To have proper segregation of duties to restrict officers of having too much access of

funds and to prevent of misappropriating it.

- Conduct fund raising activities such as bazaars and biddings to supplement for shortage

of funds.

- Compose a budget plan before disbursing the funds. Proper allocation is important

especially in a foundation that only depends on the foreign donors for resources.

- Control disbursement is also needed to keep track of the expenditures of the foundation

and to identify the savings for a particular period.

APPENDIX A

References

Anusha, T. (2011). Challenges to Ngo retrieved from http://www.studymode.com/essays/Cha llen ges-To-Ngo-573846.html

Bendew (2009). “Problems Facing Non-Profit Organization” retrieved from http://www.stu dymode. com/essays/Problems-Facing-Non-Profit-Organizations-254064.html

Drucker, Peter (2006) Managing the Non-Profit Organization. Retrieved from http://books.go ogle.com.ph/books?id=i5US1_LrjmwC&printsec=frontcover&dq=non+profit+organization&hl=en&sa=X&ei=fnaYUYeOLqnAiQezqYGADw&redir_esc=y#v=onepage&q=non%20profit%20organization%20issues&f=false

FSG; Network Impact, (2013). “How Four Community Information Projects Went from Idea to Impact” retrieved from http://www.issuelab.org/resource/case_studies_how_four_com munity information_projects_went_from_idea_to_impact

http://www.issuelab.org/resource/case_studies_how_four_com%20munity%20information_projects_went_from_idea_to_impact

http://www.issuelab.org/resource/case_studies_how_four_com%20munity%20information_projects_went_from_idea_to_impact

http://www.issuelab.org/organizations/profile/network_impact

http://www.issuelab.org/organizations/profile/fsg

http://www.studymode.com/essays/Cha%20llen%20ges-To-Ngo-573846.html

http://www.studymode.com/essays/Cha%20llen%20ges-To-Ngo-573846.html

APPENDIX B

Interviewer Guide Questions

Profile:

1. When was Mariphil Foundation established?

2. What‘s the mission – vision of the foundation?

3. What are its core values?

4. Who are the founders?

Questions:

1. What are the programs, projects or activities initiated and implemented by the

foundation?

2. How do you source a raise funds for initiatives or activities?

3. How do you finance your day to day operations?

4. Do you conduct income generating projects to augment your funding source?

5. What are the common problems faced by the foundation?

6. Is fund raising a major problem to the foundation?

7. How do you resolve the problem?

8. Do you prepare budget just before every project or activities is approved or

implemented?

9. Is there a process or procedure followed before a project is awarded or approved?

10. What are the problems or issue experienced whenever a budget on fund allocated to a

project or activity is inadequate?

11. Do you practice accounting of your project finances just to know whether you’ve one

spent or saved from the activity?

APPENDIX C

Interview Request Letter

May 12, 2013

Emeterio E. BlaseMariphil FoundationPurok Takway, Panabo City

Greetings!

The undersigned is a representative of a group of researchers from University of Mindanao, Davao City taking up Bachelor of Science in Accountancy.

The researchers are presently having their case study about the Mariphil Foundation entitled “Fundraising system of Mariphil Foundation” for the subject Management Advisory Services.

In this connection, we would like to request from your good office to allow us to interview you and selected representative of the foundation.

Your favorable response is highly appreciated.

Thank you very much and God bless.

Respectfully yours,

JAYLEN E. CAINOYStudent

Noted by:

PROF. JOEL TAN, CPA, MBAManagement Advisory Services Adviser

APPENDIX D

DOCUMENTATION

Pictures taken at the Mariphil Foundation

APPENDIX E

CURRICULUM VITAE

JULIET G. ANTIMOR

Address: 415 Alpha Homes Matina, Davao City

Contact no.: 09092288385

Email Address: [email protected]

PERSONAL INFORMATION

Date of Birth: July 22, 1993

Place of Birth: Davao City

Citizenship: Filipino

Gender: Female

EDUCATIONAL BACKGROUND

College Attended:


Matina, Davao City

Bachelor of Science in Accountancy

High School Education:

Saint Peter’s College of Toril

Toril, Davao City

Elementary

Don Manuel Guttierrez Elementary School

Matina, Davao City

mailto:[email protected]

Affiliation:

Member: Jumior Philippine Institute of Accountants

STEPHANIE APUSEN

Address: Gravahan Matina, Davao City

Contact no.: 09474097775



Date of Birth: December 26, 1992

Place of Birth: Kidapawan City


Gender: Female


College Attended:


Matina, Davao City


University of Southern Mindanao

Kabacan South Cotabato



Kidapawan City National High School

Kidapawan City

Elementary:

Kidapawan City Pilot Elementary School Special Education Center

Kidapawan City

Affiliation:



IRENE G. BOCADO

Address: Agdao, Davao City

Contact no.: 09392788959



Date of Birth: October 3, 1991

Place of Birth: Makilala, North Cotabato


Gender: Female


College Attended:


Matina, Davao City



Ricardo L. Ipong Memorial National High School

Makilala, North Cotabato

Elementary:

Bulatukan Elementary School

Bulatukan Makilala, North Cotabato

Affiliation:



JAYLEN E. CAINOY

Address: Gravahan Matina, Davao City

Contact no.: 09129500342



Date of Birth: May 12, 1992

Place of Birth: Dauin Negros Oriental


Gender: Female


College Attended:


Matina, Davao City



Tubod National High School – Carmen Annex

Tubod, Carmen Davao del Norte

Elementary:

Tubod Elementary School

Tubod, Carmen Davao Del Norte

Affiliation:


President: Mariphil Foundation Youth


JENIFFER G. PAMPLONA

Address: Blk 2. S.I.R New Matina Davao City

Contact no.: 09095391381



Date of Birth: December 6,1992

Place of Birth: Carmen Davao del Norte


Gender: Female


College Attended:


Matina, Davao City


Mindanao Aeronautical Technological School

R. Castillo St. Agdao Davao City

Bachelor of Science in Airline Management and Accountancy


Panabo National School

Panabo City

Elementary:

Rizal Elementary School

Panabo Davao City

Affiliation:


Member: Jumior Philippine Institute of

Accountants

KRESSA MAE T. PAYOT

Address: Upper Piedad Toril, Davao City

Contact no.: 09089189673



Date of Birth: July 19, 1992

Place of Birth: Toril, Davao City


Gender: Female


College Attended:


Matina, Davao City



Davao Central College

Toril, Davao City

Elementary:

C.B. Bangoy Sr. Elementary School

Toril, Davao City


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Case Study