President Ferdinand Marcos Jr. has designated the Department of Social Welfare and Development (DSWD) as the sole accrediting agency for social welfare and development organizations seeking donee-institution status.
Under Executive Order No. 117, signed on May 7 and published in the Official Gazette of the Philippines on May 12, the DSWD’s certificate of registration and certificate of accreditation for qualified social welfare and development agencies will be sufficient for recognition by the Bureau of Internal Revenue (BIR).
The order amended Executive Order No. 720 issued in 2008, which required accreditation from both the Philippine Council for NGO Certification and the DSWD before an organization could register with the BIR as a qualified donee institution.
Donee institutions are allowed to receive donations that may qualify for tax deductions and donors’ tax exemptions under the National Internal Revenue Code.
The new order defines social welfare and development agencies as non-stock, non-profit corporations, organizations, or associations engaged directly or indirectly in delivering social welfare and development programs and services. These groups may obtain funding from government agencies, local or foreign sources, communities, solicitations, or other lawful fundraising activities.
There are currently more than 900 public and private social welfare and development agencies accredited by the DSWD.
The Palace said the policy aims to simplify the accreditation process and improve the delivery of social welfare and development services to Filipinos. It also cited Republic Act No. 11032, or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, which directs government offices to streamline procedures and improve service delivery.
Social welfare agencies that already hold donee-institution status before the issuance of EO 117 will retain their status until their existing accreditation expires. Afterward, they will be required to apply for accreditation with the DSWD.
The Department of Finance, through the BIR, and the DSWD were directed to issue the necessary implementing rules and regulations for the order.
DSWD Secretary Rex Gatchalian welcomed the issuance of EO 117, saying it would make the process easier and more cost-efficient for social welfare organizations.
“With this EO, SWDAs (Social Welfare and Development Agencies) need not jump from one entity to another to get their donee institution status that unlocks tax exemptions. In addition, this is more cost efficient for SWDAs, especially small ones with limited funds,” Gatchalian said.
The Official Gazette also published Executive Order No. 115, signed on April 29, reorganizing the Technical Cooperation Council of the Philippines to align technical cooperation programs with national priorities.
Under EO 115, the Department of Foreign Affairs remains council chair, while the Department of Economy, Planning, and Development serves as vice chair. Other members include the Departments of Agriculture, Environment and Natural Resources, Science and Technology, Trade and Industry, Health, Migrant Workers, and the Technical Education and Skills Development Authority.
The reorganized council will implement the Philippine Technical Cooperation Program, to be known as “Development Philippines,” which will serve as the government’s framework for providing technical assistance to developing countries while advancing the country’s development goals and strategic interests.
EO 115 also creates a technical working group composed of director-level representatives from member agencies. The group will prepare the Philippine Technical Cooperation Roadmap and Program and monitor its implementation.