Difference between revisions of "Philippines NGO Sector"

From NGO Handbook
(Self-regulation and Tax-Exempt Status of NGOs in the Philippines)
(Self-regulation and Tax-Exempt Status of NGOs in the Philippines)
Line 56: Line 56:
 
As of December of 2008, there were 485 NGOs on the PCNC’s certified list of  NGOs,<ref>Philippine Council for NGO Certification. 2009. http://www.pcnc.com.ph/aboutUS.php PCNC: About US</ref> although Songco stated in 2006 that the PCNC has certified 1,000 NGOs in total.<ref>Danilo A. Songco. 2006. http://www.hapinternational.org/pool/files/philippines-evolution-of-ngo-accountability-implications.pdf. The Evolution of NGO Accountability Practices and their Implications on Philippine NGOs: A literature review and options paper for the Philippine Council for NGO Certification</ref>   
 
As of December of 2008, there were 485 NGOs on the PCNC’s certified list of  NGOs,<ref>Philippine Council for NGO Certification. 2009. http://www.pcnc.com.ph/aboutUS.php PCNC: About US</ref> although Songco stated in 2006 that the PCNC has certified 1,000 NGOs in total.<ref>Danilo A. Songco. 2006. http://www.hapinternational.org/pool/files/philippines-evolution-of-ngo-accountability-implications.pdf. The Evolution of NGO Accountability Practices and their Implications on Philippine NGOs: A literature review and options paper for the Philippine Council for NGO Certification</ref>   
  
Tax-exempt status is given to all entities enumerated under Section 30 of the Philippine Tax Code. This section does not require the NGOs to secure certification from an accrediting body to receive income tax exemption. However, to achieve Donee Institution  status, there are some additional qualifications. Donee Institution status allows donations to these institutions to be tax-deductible and/or exempt from donor’s tax. That is, local donors (individuals or corporations) are not only exempt form donor’s tax, but also can deduct the amount they have donated from their taxable income (up to a certain extent). Certification by the PCNC also acts as a “seal of good housekeeping” that prospective donors and funders may consider in their selection of organizations to support. Once an organization has been judged to have met the minimum criteria for certification, the board of the PCNC offers a 3-year or 5-year certification to the organization and informs the Bureau of the Internal Revenue (BIR), which can then issue the organization a Certificate of Registration as Qualified Donor Institution.   
+
Tax-exempt status is given to all entities enumerated under Section 30 of the Philippine Tax Code. This section does not require the NGOs to secure certification from an accrediting body to receive income tax exemption. However, to achieve Donee Institution  status, there are some additional qualifications. Donee Institution status allows donations to these institutions to be tax-deductible and/or exempt from donor’s tax. That is, local donors (individuals or corporations) are not only exempt form donor’s tax, but also can deduct the amount they have donated from their taxable income (up to a certain extent). Certification by the PCNC also acts as a “seal of good housekeeping” that prospective donors and funders may consider in their selection of organizations to support. Once an organization has been judged to have met the minimum criteria for certification, the board of the PCNC offers a 3-year or 5-year certification to the organization and informs the Bureau of the Internal Revenue (BIR), which can then issue the organization a Certificate of Registration as Qualified Donor Institution.<ref>Philippine Council for NGO Certification. 2009. http://www.pcnc.com.ph/certification.php PCNC: Certification</ref>  
  
According to Songco, in 1998 there are 6,000 NGOs with Donee Institution Status in the Bureau of Internal Revenue.  
+
According to Songco, in 1998 there are 6,000 NGOs with Donee Institution Status in the Bureau of Internal Revenue.<ref>Danilo A. Songco. 2006. http://www.hapinternational.org/pool/files/philippines-evolution-of-ngo-accountability-implications.pdf. The Evolution of NGO Accountability Practices and their Implications on Philippine NGOs: A literature review and options paper for the Philippine Council for NGO Certification</ref>
  
 
Another mechanism for Philippine NGO self-regulation grew out of the Caucus of Development NGO Networks (CODE-NGO). CODE-NGO is the largest coalition of NGOs in the Philippines. It is formed of ten groups of membership associations – one national NGO, seven national networks, and two regional networks – and includes an estimated total of 3,000 NGOs throughout the country.  Formed in 1990, the organization was officially registered with the Securities and Exchange Commission (SEC) as a non-profit organization in 1991. Also in 1991, CODE-NGO established a Code of Conduct for Development NGOs, the first such coalition to establish a Code of Conduct among NGOs in Asia and one of the first in the global community. This code has been signed by over 1,000 NGOs.  
 
Another mechanism for Philippine NGO self-regulation grew out of the Caucus of Development NGO Networks (CODE-NGO). CODE-NGO is the largest coalition of NGOs in the Philippines. It is formed of ten groups of membership associations – one national NGO, seven national networks, and two regional networks – and includes an estimated total of 3,000 NGOs throughout the country.  Formed in 1990, the organization was officially registered with the Securities and Exchange Commission (SEC) as a non-profit organization in 1991. Also in 1991, CODE-NGO established a Code of Conduct for Development NGOs, the first such coalition to establish a Code of Conduct among NGOs in Asia and one of the first in the global community. This code has been signed by over 1,000 NGOs.  

Revision as of 12:31, 9 March 2009

Charity and welfare work in the Philippines dates back to the beginning of colonization.[1] The motivation behind Kawanggawa (“charity”) is based on the notion of Pakikipagkapwa, meaning “to holistically interact with others” and Kapwa, meaning “shared inner self.”[2] When charity and volunteer work are carried out, it is implied that there is “an equal status between the provider of assistance and the recipient,” as exemplified by Damayan—the assisting of peers when in crisis—and Pagtutulungan, which means “mutual self-help.”[3]

These conceptions have acted as a backdrop to the successful development of the large number of non-governmental organizations (NGOs) in the country today.




To read the rest of the article, please log in using your WANGO membership username and password (using the log in at the top, right-hand corner of the page). Not a WANGO member, but would like full access to the articles in the NGO Handbook? Join WANGO (http://www.wango.org/join.aspx) as an organization or individual member or purchase a year subscription for $30.