State Policy and Program Purpose
- It is the policy of the State to provide quality and relevant education to Filipino youth and to encourage private initiative to support public education.
- The State shall institute programs that encourage private companies and enterprises to help upgrade and modernize public schools nationwide.
- The program is directed particularly toward public schools in poverty-stricken provinces.
Who May Adopt and What Schools Are Covered
- The Adopt-a-School Program allows private entities to assist a public school that is elementary, secondary, or tertiary.
- Adoption is preferably for a school located in any of the twenty (20) poorest provinces identified by the Presidential Council for Countryside Development or any other government agency tasked with identifying the poorest provinces.
- Private support may be directed toward:
- staff and faculty development for training and further education;
- construction of facilities;
- upgrading of existing facilities;
- provision of books, publications and other instructional materials; and
- modernization of instructional technologies.
Adoption Agreement Requirements (MOA)
- A Memorandum of Agreement (MOA) must be entered into between the adopting entity and the head of the school concerned.
- The MOA must specify the details of the adoption.
- The MOA is subject to review and approval of the Superintendent of Schools of the province or district concerned.
- The agreement must last for at least two (2) years, with the possibility of extension.
- The adoption period may be shortened only in cases where the adopting entity is dissolved before the end of the two (2)-year period.
- The agreement may also be earlier terminated in accordance with the succeeding section.
Periodic Review and Termination Process
- A review of each adoption must be undertaken by the local school board of the province or city where the school is located.
- The review standards and guidelines must be formulated by the Coordinating Council created under Section 7.
- The results of the review must be taken into consideration in the assessment of the application for tax credits by the adopting entity.
- After appropriate review, the school board may recommend to the Coordinating Council the termination of the adoption.
- The adopting entity may appeal the assessment to the Coordinating Council, and the Council’s decision is final and unappealable.
Tax Benefit: Additional Deduction for Adoption Expenses
- Despite provisions of existing laws to the contrary, expenses incurred by the adopting entity for the “Adopt-A-School Program” are allowed an additional deduction from gross income equivalent to fifty percent (50%) of such expenses.
- Valuation of assistance other than money is based on the acquisition cost of the property.
- Valuation must take into consideration the depreciated value of property that has already been used.
Name Display and Representation in Local School Board
- In addition to the incentive under Section 5, the adopting company or enterprise is entitled to have its name emblazoned beneath the name of the school, with words indicating that the school is under the “Adopt-a-School Program.”
- The adopting entity must be represented in the local school board of the municipality where the adopted elementary or high school is located.
Coordinating Council: Composition and Meetings
- A Coordinating Council is created to coordinate and monitor implementation of the Act.
- The Council is composed of:
- the Secretary of the Department of Education, Culture and Sports (DECS) as chairperson;
- the Chairman of the Commission on Higher Education (CHED) and the Director-General of the Technical Education and Skills Development Authority (TESDA) as co-chairpersons; and
- the chairperson of the Presidential Council for Countryside Development (PCCD) and a representative from a national federation of chambers of commerce and industry appointed by the President of the Philippines as members.
- The Council must meet once every three (3) months.
- Chairpersons and members do not receive compensation, but are entitled to reimbursements for reasonable expenses related to Council activities.
- The DECS, CHED and TESDA, through a mutual agreement, must each make provisions for the secretariat of the Council.
Implementing Rules, Separability, and Repeal
- The DECS, CHED and TESDA, in consultation with the Department of Finance, must formulate the rules and regulations to implement the Act.
- If any provision is declared unconstitutional, the validity of the other provisions is not affected.
- All laws, decrees, orders, rules and regulations, or parts thereof inconsistent with the Act are repealed or modified accordingly.