WELCOME TO PHILIPPINE COUNCIL FOR NGO CERTIFICATION PCNC

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WELCOME TO PHILIPPINE COUNCIL FOR NGO
CERTIFICATION(PCNC)
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Role of Philippine NGOs

• Developed a strong reputation for the delivery of
  basic services to the poor.
• Enshrined in the Philippine Constitution.
• Included in local national consultations on
  important issues.

• estimated number of NGOs in the Philippines -
  60,000

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What is PCNC?

• PCNC stands for PHILIPPINE COUNCIL FOR NGO
  CERTIFICATION.

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• A private, voluntary, non-profit, and non-stock
  corporation
• A service organization whose main function is to
  certify non-profit organizations that meet
  established minimum criteria for quality service
  to underprivileged Filipinos

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VISION
A self-regulating NGO community that is committed
to the pursuit of development goals and
respected by government, donors, and
international development institutions.
MISSION
To be recognized as the pre-eminent accrediting
entity of Philippine NGOs aspiring for donee
institution status, and as such, to continuously
create the environment where NGOs enjoy
credibility and the confidence of its various
stakeholders.
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Objectives of the PCNC

• To provide a mechanism of certification for NGOs
  which meet established minimum criteria for
  greater transparency accountability.
• To encourage private sector participation in
  social development through availment of
  incentives under the Comprehensive Tax Reform
  Program.

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• To stimulate and integrate the efforts of the
  non-profit sector to elevate its standards of
  service delivery and
• To provide a system for greater GO-NGO
  collaboration and complementation.

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Founding Members of PCNC

• Association of Foundations (AF)
• Bishops-Businessmens Conference for Human
  Development (BBC)
• Caucus of Development NGO Networks (CODE-NGO)
• League of Corporate Foundations (LCF)
• National Council of Social Development
  Foundations (NCSD)
• Philippine Business for Social Progress (PBSP)

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What is a Certified NGO?
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A Certified NGO is one that meets the set minimum
requirements of the PCNC.

• Registered with accredited government
  institutions (SEC BIR)
• With operating organizational structure
• Operating system in place working
• Track record of development programs for
  identified target clientele

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WHAT IS CERTIFICATION FOR DONEE INSTITUTION
STATUS?
DONORS
CERTIFIED domestic, non-stock, non-profit
corporations or NGOs
contributions or gifts
business deductions for income tax purposes
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WHAT IS CERTIFICATION FOR DONEE INSTITUTION
STATUS?
Republic Act 8424 or the Tax Reform Act of 1997,
Chapter VII, Section 34 (H) provides that
contributions or gifts actually paid or made to
donee institutions shall be allowed as business
deductions for income tax purposes.
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• WHO MAY BE CONSIDERED FOR DONEE INSTITUTION
  STATUS?
• 1. NGOs
• 2. domestic non-stock, non-profit corporations
  and associations organized and operated
  exclusively for
• religious
• charitable
• scientific
• youth and sports development
• cultural or educational social welfare
  purposes
• rehabilitation of veterans

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WHAT IS THE DIFFERENCE BETWEEN DONEE INSTITUTION
STATUS TAX EXEMPT STATUS?
Tax Exempt Status is granted to all entities
enumerated under Section 30 of the Philippine Tax
Code.
Donee Institution Status is granted only to
certain organizations that wish to access local
donations which can be deducted from the donors
taxable income and also exempted from donors
tax.
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WHAT ARE TO BE GAINED IN THE CERTIFICATION SYSTEM?

• Promotes professionalism, transparency and
  accountability of the NGO community
• Provides opportunity for self-assessment
  improvement
• Provides assistance for organizational
  strengthening
• Recognizes NGOs of good standing that funding
  donors may consider in their choice of
  organization to support
• Encourages local donations to NGOs, made more
  important by the present trend of dwindling
  resources for social development projects

A Certification of DONEE INSTITUTION STATUS leads
to better things.
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Implementing Strategies

• Full active participation of major national
  networks
• Training of evaluators
• Mobilization deployment of evaluators

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THE CERTIFICATION PROCESS
1. The applicant NGO submits to the PCNC
Secretariat a letter of intent to apply for
certification the necessary documents.
2. If applicant NGO qualifies, evaluation
process follows which includes site visits by an
evaluation team.
3. A recommendation based on the results of the
evaluation is then submitted to the Board.
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5. PCNC then informs the BIR that the applicant
NGO has passed the standards.
4. If applicant NGO does not meet the minimum
criteria for certification, it is advised to
re-apply after implementation of recommendations.
If it does, the Board gives a three or five-year
certification.
6. BIR then issues to the organization a
certification of donee institution status.
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PCNC Organizational Structure (PROSPECTIVE)
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Criteria for Board Members

• Endorsed by certified institutions
• CEO or COO of an institution for at least 3 years
• Must not have been involved in any administrative
  case
• Unquestionable integrity probity
• Physically fit

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• Has knowledge in
• Financial systems procedures
• Any of the following 6 major programs
• health / nutrition / shelter
• community organizing
• livelihood / coops
• environment / disaster
• education / research / training
• children / women
• Administrative systems procedures
• Extensive exposure / familiarity with various NGO
  networks

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Criteria for Evaluators

• Endorsed by certified institutions
• Belonging to MANAGERIAL level of a development
  institution for at least 3 years
• Must not have been involved in any administrative
  case
• Willing to travel and stay in the area for at
  least 3 days

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• Physically fit
• Has knowledge in
• Financial systems procedures
• Administrative systems procedures
• Extensive exposure / familiarity with various NGO
  networks
• Any of the following 6 major programs
• health / nutrition / shelter
• community organizing
• livelihood / coops
• environment / disaster
• education / research / training
• children / women

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THE END