PRESIDENT Ferdinand R. Marcos, Jr. centralized the accreditation process for donee institutions, aiming to reduce bureaucratic hurdles for nonprofits seeking tax-deductible status.
Executive Order No. 117 mandates a “one-stop” accreditation system to improve government service delivery, making the Department of Social Welfare and Development (DSWD) the sole accrediting authority for social welfare and development agencies (SWDAs), replacing the Philippine Council for NGO Certification (PCNC).
The order was signed on May 7 by Executive Secretary Ralph G. Recto and was uploaded to the Official Gazette website on May 12.
Donee institutions are organizations authorized under the National Internal Revenue Code to receive tax-deductible contributions and qualify donors for exemptions from donors’ tax.
“There is a need to streamline the process for accreditation of SWDAs to further ensure effective and efficient delivery of social welfare and development services to the Filipino people,” the order read.
Under the new rules, the Bureau of Internal Revenue (BIR) will recognize the DSWD’s Certificate of Registration and Accreditation in granting donee institution status.
The new policy is in line with the government’s Ease of Doing Business and Efficient Government Service Delivery Act of 2018 by streamlining procedures and reducing unnecessary requirements for SWDAs.
The Department of Finance and BIR will issue the implementing rules and regulations for the order.
All SWDAs granted with donee institution status prior to the new rules will retain their status until it expires. — Chloe Mari A. Hufana
