By group H Members Raya Jeff Castillano Min May Raya Jeff Alonso Vicencio Joan Cyrille Macarubbo Marvin Valete Francis John Problem A philanthropist wants to donate P10billion to a charity to provide an annual scholarship to the less fortunate He is considering three cha ID: 553563
Download Presentation The PPT/PDF document "A Philanthropist Life" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
A Philanthropist Life
By group HSlide2
Members
Raya, Jeff
Castillano, Min May
Raya
,
Jeff
Alonso
Vicencio, Joan Cyrille
Macarubbo, Marvin
Valete, Francis JohnSlide3
Problem
A
philanthropist wants to donate P10billion to a charity to provide an annual scholarship to the less fortunate. He is considering three charities. Charity Mapagmahal propose that in 10 years there will be 10,000 less fortunate kids who can pursue their primary level until they graduate in public schools. Charity Matulungin propose that in 10 years there will be 1,000 less fortunate college students who can pursue their bachelor’s degree in top universities until they graduate. Charity Makatao propose that in 15 years there will be 5,000 less fortunate high school students who can pursue their secondary level in decent schools until they graduate. How much is the yearly scholarship in each of these options? What do you think will be the best option for this type of client?Slide4
Business Profile
Lasavista Foundation
The
foundation is located in the Philippines. It was created during 2010 by the generous alumni’s who care for the Philippines people especially those people who are in the poverty line or even below it.
Accomplishments
Lasavista has sponsored over 50,000 students already and continues to seek out other students who can’t afford to study on their own.
Lasavista has plenty sponsors coming from alumni’s of La Salle and also others who care for poor children of the Philippines.
Slide5
Client’s Profile
John L. Gokongwei Jr
John
Robinson Lim Gokongwei, Jr. is a Filipino business magnate, investor, and
philanthropist. He
has holdings in telecommunications, financial services, petrochemicals, power generation, aviation and live stock farming.
Philanthropist Life
Gokongwei paid his dues to philanthropy when he established the Gokongwei Brothers Foundation. In 1999 the foundation put up GBF training Center as an advanced technical school for engineering graduates; it also launched the Children’s Library, the multi-media libraries at the Robinsons shopping mallsSlide6
Beneficiery’s Profile
Charity Mapagmahal
Charity
Mapagmahal
is a NGO that focuses on kids who study primary to high school in public schools.
Formed cause of increase in uneducated kids in the Philippines.
Charity Matulungin
Charity
Matulungin
is a NGO that focuses on less fortunate college students who will be given a chance to study in quality colleges. Slide7
Beneficiery’s Profile
Charity Makatao
Charity
Matkatao
is a NGO that focuses on less fortunate high school students who will be given a chance to study in decent schools.Slide8
Objectives:
This business report aims to:
a.) provide the best charity option for the philanthropist to donate in
b.) provide the most appropriate payment scheme based on client' capacity;Slide9
Methology
1.Client’s Concerns
Philanthropist would like to invest 10billion in a charity from the three choices.
2.Resolutions
A. Philanthropist would like to invest 10billion in a charity from the three choices.
The Philanthropist has 10billion to donate in a charity, and the choices are charity Mapagmahal, charity Matulungin, and charity Makatao with their given number of students and options in education. After reviewing the charity options, Lasavista recommends to use Ordinary Simple Perpetuity as the payment scheme.Slide10
Definition
of Payment Scheme:
The best payment scheme is Ordinary Simple Perpetuity. When it is an annuity in which the payment interval equals the conversion period. Here, the payment of the perpetuity happens at the end of each rent period. Ordinary Simple Perpetuity is recommended by our foundation cause of the yearly interest of the 10billion from BPI that will be donated to a chosen charity.Slide11
b
. Computation
The Philanthropist would like to donate 10billion to the best charity. This amount will be deposited to BPI which gives a 1.125%
and
effective
rate which is equivalent to 1.125% periodic interest rate. Furthermore the interest from the money donated can annually pay the chosen charity.Slide12
If the ordinary simple perpetuity will be used to compute charity Mapagmahal in 10 years with 10,000 less fortunate kids and P800 annual tuition per kid in San Isidro, the computation for the annual donation will be:
RP=Aplp
RP=(10,000,000,000)(O.O1125)
RP=
P
112,5OO,000
P
112,500,000
________________
P
800= 140,625 kids can be helped
Case I.Slide13
If the ordinary simple perpetuity will be used to compute charity Matulungin in 10 years with 1,000 less fortunate college students and P240,000 annual tuition per student in DLSU, the computation for the annual donation will be:
RP=Aplp
RP=(10,000,000,000)(O.O1125)
RP=
P
112,5OO,000
P
112,500,000
------------------------------------
P
240,000= 468 college students can be helped
Case II.Slide14
If the ordinary simple perpetuity will be used to compute charity Makatao in 15 years with 5,000 less fortunate high school students and P60,000 annual tuition per student in La Salle Antipolo, , the computation for the annual donation will be:
RP=Aplp
RP=(10,000,000,000)(O.O1125)
RP=
P
112,5OO,000
P
112,500,000
------------------------------------
P 60,000
= 1,875 high school students can be helped
Case III.Slide15
Conclusion
A. 10billion deposited in BPI’s annual interest rate of 1.125%
Our
company's decision is to implement a ordinary simple perpetuity for our client’s 10billion that will be deposited in BPI that gives a 1.125%
effectiverate
. Hence, the client will have a annual due of P112,500,000 that will be donated to a charity.
B. Donating the annual interest rate to charity Mapagmahal
With the annual interest of P112,500,000 from BPI, the philanthropist could help 140,625 kids who can pursue their primary level until they graduate public schools in San Isidro Public School. The philanthropist can help more kids than what charity Mapagmahal is offering.Slide16
Conclusion
C. Donating the annual interest rate to charity Matulungin
With the annual interest of P112,500,000 from BPI, the philanthropist could help 468 college students who can pursue their bachelor’s degree in DLSU.
D. Donating the annual interest rate to charity Makatao
With the annual interest of P112,500,000 from BPI, the philanthropist could help 1,875 high school who can pursue their secondary level in La Salle College Antipolo. Slide17
Recommendations:
After thorough investigation, our company strongly recommends these:
* Ordinary Simple Perpetuity is the appropriate payment scheme if the client decides to donate 10billion to a charity.
* The client should deposit his 10billion to BPI because it has a high annual interest rate.
* The philanthropist should donate to charity Mapagmahal because it surpassed the number of students they are asking, and he could add more students to help with his budget. Unlike like the other two charities who lacked the number of students required due to shortage of budget.Slide18
T H A N K Y O U V E R Y M U C H !