Section 3March 05, 2009, Sec./Art. 3

The National Book Development Trust Fund. - A National Book Development Trust Fund, hereafter referred to as the Fund, is hereby established exclusively for the support and promotion of Filipino authorship especially in science and technology and in subject areas wherein locally authored books are either few or nonexistent. The Fund shall be subject to the following;

(a) The contribution to the Fund shall be sourced from the following:

(1) The amount of Fifty million pesos (P50,000,000.00) shall be alloted in the annual General Appropriation Act (GAA) for the next five (5) years starting from the enactment of this law;

(2) The amount of Fifty million pesos (P50,000,000.00) shall be taken from the Philippine Amusement and Gaming Corporation (PAGCOR) fund at Five million pesos (P5,000,000.00) per month for ten (10) months;

(3) Another amount of Fifty million pesos (P50,000,000.00) shall be taken from the Philippine Charity Sweepstakes Office (PCSO) at Five million pesos (P5,000,000.00) per month for ten (10) months;

(b) Only the interest drawn from the Fund from sources cited in Section 3 (a1), (a2) and (a3) shall be awarded as grants to promote Filipino authorship and to support the completion of local manuscripts or research works for publication;

(c) The grants can be awarded only after one (1) year from the organization of the Fund, and the grants shall be awarded equitably among the regions.

(d) Government corporations are hereby authorized to give grants to the Fund at their discretion;

(e) The private portion of the Fund shall be raised from donations and other conveyances including funds, materials, property and services, by gratuitous title;

(f) Contributions to the Fund shall be exempt from the donor's tax and the same shall be considered as allowable deductions from the gross income of the donor, in accordance with the provisions of the National Internal Revenue Code of 1997, as amended: Provided, That the allowable deductions shall be equivalent to one hundred fifty percent (150%) of the value of such donation;

(g) The National Book Development Board(NBDB) shall be the administrator of the Fund;

(h) For the sound and judicious management of the Fund, the NBDB shall appoint a government financial institution, with sound track record on fund management, as portfolio manager of the Fund, subject to guidelines promulgated by the NBDB; and

(i) The NBDB shall prepare the implementing guidelines and decision-making mechanisms, subject to the following:

(1) No part of the seed capital of the Fun, including earnings thereof, shall be used to underwrite overhead expenses for the administration; and

(2) There shall be an external auditor to perform an annual audit of the Fund's performance.