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What is the GoodWell Fund?

The GoodWell Fund is a funding window for small but effective livelihood projects that are ready for replication and expansion. It offers financial assistance to community-based enterprises that seeks to cater to a development need. It is a tool for the Philam Foundation to promote social entrepreneurship and social enterprises as a means to address the poverty situation since social entrepreneurs and enterprises address double or triple bottom lines.

 

No grants are given under the GoodWell Fund. Instead, livelihood projects are provided with soft loans. The repayment of the principal is an indicator of the project’s feasibility and sustainability. Earnings from the loan should be plowed back to the project while the principal is repaid. It is hoped that the organization will be able to benefit from the capital infusion and eventually be sustainable after the principal loan is paid back to the GoodWell Fund. The principal repayment is returned to the GoodWell Fund and will then be used to fund other livelihood projects elsewhere.

 

Established in 2002 as the Philam Poverty Alleviation Fund, its primary aim was to contribute more concretely to the attainment of one of the UN Millennium Development Goal of eradication of poverty. It also intended to fill a vacuum in the ’ social development sector for project financing in light of the fact that at the time of its inception, most international funding agencies were reclassifying their priorities to other Asian countries.

 

Today, it has evolved to what is known as the GoodWell Fund in order to align and integrate corporate social responsibility to the core business of the Philam Group and to realize its goal of growing the fund in order to serve at least an additional 1,000 households annually. The change in its name was inspired by the agents who intrinsically do good by doing well and as such, also signifies the realignment of the Foundation’s efforts to the company’s core business of providing financial stability.


Initially, the GoodWell Fund generated resources from the annual donations of the member companies of the Philam Group as well as from the endowment fund of the Philam Foundation. Now, the Foundation makes use of a resource mobilization campaign called the 60 Against Poverty Campaign. This campaign utilizes the agency force such that for every ordinary life policy sold by the agents, Php60 goes directly to the GoodWell Fund. At present, a little over 20 million pesos have been released for 14 livelihood projects scattered in various parts of the country. Over 3,000 households have benefited through the initiative.

 

Who can avail of the GoodWell Fund?

 

Non-government organizations, farmers’ or fisher folks’ associations, cooperatives, people’s organizations and federations which have livelihood projects that have been tested and have been proven effective are qualified to avail of financial assistance through the fund. Moreover, projects that are up for expansion or replication are also qualified to apply.

 

Although there are no geographical or sectoral biases, projects up for financing have to be innovative and should answer a development need.

 

How much can we loan? What are the terms?

 

The loan amount ranges from Php250,000.00 up to Php2 Million Pesos, with only 6% management fee per annum. The loan may be paid in one-year to three-year terms. There is no fixed repayment scheme for the loan. Rather, it is determined by the Foundation in consultation with the requesting institution.

 

How do we apply for the loan? How long does processing of the request take?

 

Application for the loan adheres to the following process:

 

1.Interested Non-Government Organizations, Farmers’ Cooperatives and Peoples Organization and Federations should submit concept notes in the area of livelihood and enterprise development (format for concept notes are available upon request from the Foundation staff).

 

2.An initial meeting with the short listed organizations is set where the projects are further discussed and issues are clarified.

 

3.A full proposal is requested from those organizations whose projects have passed the initial screening. The projects are reviewed and evaluated. A site visit is arranged and interviews are conducted to verify the data presented. The track records of the proponent and the project are reviewed as well.

 

4.A final report of the site visit together with the project proposal is prepared to be presented to the Board of Trustees for their approval.


Generally, it takes 3 months for the preliminary screening, and another 3 months before a project will be approved for financing. This is since the Foundation first needs to present all proposals to the Board of Trustees (BOT), which only meets once every quarter.

 

What happens if our request is granted?

 

Once the proposal has been approved for financing, Philam Foundation and the requesting institution will have a MOA signing, after which the amount requested for will be released. The project is then subjected to regular monitoring and evaluation during the duration of the project. The partner institution shall be given the standard monitoring and evaluation guidelines that Philam Foundation utilizes, which the partner ought to follow. Proponents will also need to submit quarterly reports since these will be presented to the BOT as well.

 

Who do we contact? How do we get in touch with Philam Foundation?

 

For inquiries, you may contact: Denise G. Subido, Associate Program Staff of the Philam Foundation, with address at: G/F Philamlife Building, United Nations Avenue, Ermita, Manila. You may phone in at telephone number: (02)526-9449 or send your facsimiles to this number: (02)528-2467. Better yet, send in your queries to philamfoundation@aig.com.

 

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