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Caldera Foundation, a non-stock charitable educational organization duly registered in the Philippines, maintains two sources of receipts: (i) Exempt activity — a nationwide scholarship program and tutoring services for underprivileged students; 65% of total receipts come from this program; (ii) Endowment earnings — investment income from a donor-restricted endowment set up to fund scholarships and related supportive activities; 35% of total receipts come from the endowment. The donors require that the endowment earnings be used solely for scholarships and allied activities. The Bureau of Internal Revenue has issued a preliminary position that the endowment income is unrelated business income if not used for the exempt purpose. (a) Is the endowment income exempt, given the Foundation’s exempt purposes? (b) Can Caldera Foundation maintain its tax-exempt status if it continues to hold and invest the endowment? (c) What steps should Caldera Foundation take to preserve its exemption for the exempt activities while addressing the endowment’s earnings?