Ayala Foundation

WHO WE ARE
Ayala Foundation is the social development arm of the Ayala group. Operating under the principles of community development, Ayala Foundation implements programs guided by inclusion through its social development initiatives and by inspiration through its work in the field of arts and culture.

Its headquarters are located in Makati City, with regional offices in Cebu City and Cagayan de Oro City. In 2019, its programs and special projects were brought to all 17 geographic regions in the country, with program beneficiaries present in other parts of the country and the world.

Founded in 1961, Ayala Foundation acts as a catalyst for inclusion in bridging business needs and community aspirations. By serving as an advocate for community development, it helps improve lives by creating and providing opportunities for growth and progress.

The foundation measures its impact and tracks the outcomes of its initiatives by using the Social Return on Investment framework. Through the SROI framework, Ayala Foundation measures non- or extra-financial value, covering such items as social or environmental impact, among others. While using the SROI methodology primarily assigns a financial proxy to each type of impact, it also allows for the inclusion of non-monetized, qualitative, and narrative information.

Ayala Foundation adheres to the highest standards of transparency and accountability. It is certified by the Philippine Council for NGO Certification, a self-regulating body which certifies not-for-profit organizations that meet established minimum criteria for financial management and accountability in serving underprivileged Filipinos. Ayala Foundation is also accredited by the Department of Social Welfare and Development and has secured from the Bureau of Internal Revenue a certificate of tax exemption for grants and donations. The foundation is an active member of civil society organizations such as the Association of Foundations, the League of Corporate Foundations, and the Asian Venture Philanthropy Network.

Ayala Foundation continues to drive social value in its operations as it secured in 2019 a Social Value Certificate from Social Value International, a global network that focuses on social impact and social value. This means that the foundation is committed to implementing “systems and processes that are consistent with the Social Value Principles.” This makes Ayala Foundation the first organization in the Philippines and the rest of Asia to secure the certificate.

MARKET OUTLOOK
Founded as Filipinas Foundation in 1961, Ayala Foundation was among the first corporate foundations in the country. Today, corporate foundations are numerous, and work hand-in-hand with businesses to undertake community outreach and other corporate social responsibility activities.

The civil society sector in the Philippines has frequently been cited as one of the most well-developed and institutionalized in the world. CSOs are cited for their role in championing improvements in the delivery of social services, as well as advocating greater social and economic participation among the poor and underserved.

Based on reports, there is a combined total of 208,963 CSOs registered with various agencies such as the Securities and Exchange Commission and the Cooperative Development Authority, among others.

While the not-for-profit sector in the Philippines remains one of the most robust in Asia, the sector has also been facing challenges. A 2018 study conducted by the Caucus of Development NGO Networks noted that while the general sustainability of CSOs in the country is virtually unchanged, a decline has been noted on the following factors—legal environment, advocacy, and public image. Philippine CSOs remained stable in terms of organizational capacity, financial viability, service provision, and sectoral infrastructure.

BUSINESS REVIEW
“1-Pinoy, 1-Pinas” served as a battlecry for Ayala Foundation in 2019, expressing its commitment to make an impact in the lives of Filipinos.

Ayala Foundation became the first organization in the Asia Pacific region to secure a Social Value International, which advocates a multi-faceted accounting of social value beyond the financial bottom line.

The two-year certification was a result of its work in social return on investment. As an impact assessment framework, SROI measures and accounts for social values created by projects and activities. Social value is used to describe the social, economic, and environmental gains of projects.

As a pilot initiative, Ayala Foundation in partnership with Ayala Land measured the SROI of Project Lio 2.0, a community development engagement in El Nido, Palawan. The integrated interventions in El Nido, which covered education, livelihood and employment, and other initiatives, generated an SROI of ₱1:₱26, which means every one-peso investment has a 26-fold return in social value.

Farmers participating in the Calauan Program increased to 35. Ayala Foundation continued to facilitate their organizational needs as a registered cooperative. Aside from running an ornamental farm, the farmers now also grow organic vegetables. Each farmer earns an average monthly income of ₱7,700, a slight increase from 2018’s ₱6,979 per farmer.

Internationally acclaimed ballet star Stella Abrera came back to the country to do a second run for her fund-raising performance for the benefit of CENTEX. Held on November 7 and 8, “Stella Abrera & Rising Stars of American Ballet Theatre featuring James Whiteside, Principal Dancer, American Ballet Theatre” raised ₱2.4 million. CENTEX graduate Elwince Magbitang, who performed with Abrera at the fund-raising event, is now part of the American Ballet Theatre Studio Company in New York. Another CENTEX Manila alumnus, Danier Laganzo, received a scholarship from the New Zealand School of Dance for his participation in the Asian Grand Dance Prix in Hong Kong.

Abrera’s return saw the inauguration of the Stella Abrera Dance and Music Hall in CENTEX Batangas. The construction of the dance and music hall was the product of the first fund-raising performance in 2018.

While the Ayala Museum and the Filipinas Heritage Library closed their doors for a major renovation, Ayala Foundation increased its efforts to magnify uniquely Filipino art and culture. Through Ayala Museum On-the-Go, it highlighted some of the most compelling aspects of Filipino identity and history through traveling exhibitions, offsite lectures, and online platforms. Collectively, the different traveling exhibits reached nearly 400,000 guests, higher than the 100,000 plus annual visitorship before the museum closed.

In line with Ayala’s 185th anniversary celebration, The Ayala Community for Social Impact supported Ayala-wide volunteerism activities in 2019. Through initiatives like Brigadang Ayala, and by helping put together a volunteerism microsite for the entire group, Ayala Foundation helped generate 345,689 volunteer hours during the year—a resounding contribution to the 185th anniversary’s target of 185,000 hours.

On the financial side, Ayala Foundation received public support worth ₱244.9 million. The endowment fund generated earnings of ₱145.2 million. The endowment fund reached a value of ₱2.1 billion at year end. Part of this was used for the renovation of the Ayala Museum.

The Information and Communications Division of Ayala Foundation also launched its first digital program, <code/it>. For its pilot run, the program trained 169 teachers in basic coding, enabling them to teach public school students digital literacy skills. The foundation also signed a memorandum of agreement with the city of Manila to train teachers from 2020 to 2022.