Ayala Foundation 2009 Annual Report Shifting Paradigms A teacher sits at her desk planning her next lesson. Her face brightens, as she thinks of a fresh approach to education—one that integrates technology, art and culture, and social awareness. Over the years, Ayala Foundation Inc. (AFI) has contributed significantly to transforming the face of education in the country. AFI has pioneered successful projects in improving the quality of public education, bringing technological tools to poor students, opening world-class facilities for art and culture, building awareness on the need to protect the environment, and encouraging social entrepreneurship. These projects have truly helped shift paradigms in education in the country. As it enters its 49th year, AFI reaffirms its commitment to take the spirit of innovation to people and communities it serves.This forward Contents annual report presents the many ground-breaking programs that AFI has introduced and sustained over the years. Even the unique layout design of the report reflects AFI’s creativity and inventiveness. 2 The Chairman’s Message 4 The President’s Message 6 At a Glance 16 Operational Highlights 38 Q& A with the President 40 The Year Ahead 42 2009 Board of Trustees bbeginegin 44 Ayala Foundation Management and Staff 2009 45 Report of Independent Auditors 80 Acknowledgments 87 Directory 88 Mission and Vision Dear stakeholders, We at Ayala Foundation are aware of the enormity of our mission: to eradicate the myriad forms that poverty takes. Over the last 48 years, we have worked hard to design and implement programs in areas where we could maximize our reach and create enormous impact. This is particularly true for our initiatives in the fields of education, entrepreneurship, the environment, and arts and culture. We are also aware that addressing the problem of poverty requires a lot of flexibility. The needs of the people we serve constantly evolve, as do the tools required for us to carry out our projects. In 2009 Ayala Foundation, its partners, and supporters demonstrated how best to address emerging needs without losing track of perennial problems. The onslaught of typhoons Ondoy and Pepeng brought to our attention the need to provide immediate relief to those affected by the typhoons, and at the same time come up with long-term, preventive solutions. The Ayala Young Leaders Congress, for instance, mobilized its network of alumni from all over the country to provide relief goods, as well as technical and logistical support for people living in devastated areas. The typhoons strengthened the spirit of volunteerism within the foundation, as employees, partners, and other stakeholders participated in nationwide relief operations. le Message ad The foundation also joined hands with different organizations The Chairman’s to develop a program addressing the destructive effects of typhoons and other calamities. A multi-stakeholder initiative, Project Noah’s Ark does not only seek to provide immediate disaster relief, but also to come up with suitable In the face of all the difficulties that befell the country, our commitment to evacuation centers, establish guidelines for community- enriching our artistic and cultural heritage also strengthened. The Ayala based disaster response, provide training on disaster Museum and the Filipinas Heritage Library, in particular, held on to their preparedness, and set up an early warning system for mandate of celebrating the greatness of our country, not only for the typhoons and other calamities. This way, we can prevent benefit of foreigners, but more importantly for our fellow Filipinos. death, destruction, and unneeded suffering, and our fellow Filipinos will not feel helpless in the face of a We at Ayala Foundation take pride in how much we and our typhoon or any other calamity. partners—past, present, and future—have achieved in pursuing our goal of uplifting the quality of life of Filipinos. We are The spirit of volunteerism that informed our disaster- also immensely grateful for the unflagging trust, faith, and relief and disaster-preparedness efforts also helped enthusiasm of our supporters, donors, managers, and make our continuing advocacies flourish. Our staff. Our continuing partnership brings us ever closer to educational, entrepreneurial, environmental, and reaching our goals. community development initiatives continued to reach out to a greater number of Filipinos around the country, with more and more partners from different parts of the world joining us in our various campaigns, either as donors, supporters, or volunteers. Jaime Zobel de Ayala 3 2 Dear stakeholders, Young Leaders Alliance, for instance, mobilized its nationwide network of 798 In line with the Ayala group’s trailblazing efforts to Meanwhile, the multi-sectoral initiative Text2Teach was The word “tragedy” was alumni to participate in rescue and relief incorporate sustainability in its businesses, AFI strengthened introduced to 97 public elementary schools. As many as 302 used repeatedly to operations, and reached as many as 1,250 its environmental initiatives by expanding the Solid-Waste schools and over a million students are now benefiting from describe a number families in the hardest-hit areas, including Management program into the Ayala Green Resources for Text2Teach’s educational materials, delivered through 3G of harrowing, Rizal, Metro Manila, Bulacan, Pampanga, Environmental Education and Networking (Ayala GREEN). technology. The project also continued getting the support unprecedented and Benguet. Through this program such issues as clean water, clean air, of local government agencies, as they vowed to provide the events that and energy efficiency have also become priority areas in AFI’s counterpart funding for the success of Text2Teach in their occurred in our AFI also tapped its network of global environmental initiatives. As one of its early projects Ayala towns and provinces. country in 2009. partners and supporters for numerous GREEN, in cooperation with 56 office and residential buildings Still reeling from fund-raising activities that were not in the Makati Central Business District, conducted a study Just as the Ayala Young Leaders Congress organized the the damage only meant to finance short-term relief on energy efficiency among the participating buildings. The training of 73 very promising student leaders from all over wrought by the activities, but also to offer long-term, results of the study serve as a guide for future energy-saving the country, the Education and Livelihood Alliance (ELSA) also economic crisis preventive solutions. Ayala Foundation projects. involved itself in the training of individuals who could bring that began in USA actively informed Filipino-Americans positive change to Region XII and the Autonomous Region 2008, the country about the plight of Filipinos affected Even with the establishment of Ayala GREEN, AFI’s Solid- of Muslim Mindanao. ELSA provided training in leadership, was hit by several by the typhoon, and organized special Waste Management (SWM) program continued to generate fund-raising, and community engagement to 160 young natural calamities. We events to raise funds for rescue and significant response from numerous individuals and leaders and 144 officers and members of parent–teacher wept over the death of rehabilitation activities, as well as organizations. One may immediately notice that the amount associations. President Corazon Aquino, other existing AFI projects. AF USA held of recyclables AFI and its partners collect during these fairs we braved the destruction Dining with the Chefs, a benefit dinner has been slowly decreasing in the past few years—in 2007 The role of technology in developing an entrepreneurial brought by typhoons Ondoy and that featured the cuisine of the most about 1,800 tons of recyclables, worth nearly P10 million, was spirit among Filipinos was championed by the Ayala Pepeng, and we stood in horror and anger promising Filipino-American culinary recovered; in 2009 1,300 tons, worth nearly P7 million, Technology Business Incubator (Ayala TBI). In Ayala in the aftermath of the Maguindanao talents, as well as a benefit concert, held was collected. The decline, however, is actually TBI’s facility located at the University of the massacre. in New York, headlined by international a good sign, because it represents a growing Philippines–Ayala Land TechnoHub, a total of 13 star Lea Salonga. AF USA raised over awareness of the importance of proper solid- startup companies were signed up, thus giving But as much as tragic events defined $314,000 for typhoon victims and a reach waste management, as well as the recognition them the chance to showcase and test their the past year, these same events total of $1.42 million to finance its of the economic and environmental value of innovative products and business models. provided Filipinos throughout the world numerous projects. trash. Because of our pioneering efforts, AFI’s the opportunity to show our unity and SWM program has become a model for many other As we enter our 49th year, we at Ayala Foundation solidarity, as well as our dedication to AFI raised over P16 million for institutions in setting up their own recyclables fairs. In are implementing organizational changes to help rebuilding our country and recovering the benefit of families severely addition, Filipinos are fast learning the value of segregating us become more responsive to the needs of the people what we lost. Committed as we affected by the typhoons. A their trash, instead of sending it indiscriminately to sanitary we serve. We hope to achieve greater synergy among our are to eradicating the many significant percentage of the funds raised landfills. projects and activities. Starting in 2010, we will intensify our forms that poverty takes, by AFI was reserved for collaborative commitment in five major areas: education; entrepreneurship; we at Ayala Foundation projects on disaster preparedness. As a trailblazing institution in the area of education and environment and sustainability; history, art, and culture; and also know that this goal youth development, AFI marked a number of milestones community development.