QuestionsQuestions (Republic Act No. 3133)
EO 720 establishes a government-NGO partnership within the accreditation of donee institutions so that only legitimate charitable contributions claimed as deductions under Section 34(H) of the National Internal Revenue Code are properly supported for income tax purposes.
It covers domestic corporations or associations organized and operated exclusively for religious, charitable, scientific, youth and sports development, cultural or educational purposes, or for rehabilitation of veterans, as well as NGOs/social welfare institutions, subject to accreditation rules under the NIRC and implementing issuances.
The Philippine Council for NGO Certification (PCNC) is designated as the government’s partner in the accreditation system for determining qualification of donee institutions.
EO 720 requires that no corporation, association, or NGO may be processed for accreditation by PCNC unless it has secured valid registration with the government agency that exercises regulatory function over such entity.
No. EO 720 states that the responsibility for granting certification of donee institution status remains with the Department of Finance, specifically the BIR, which issues the Certificate of Registration as Qualified Donee Institution.
PCNC must comply with the existing standards and guidelines set by the DOF through the BIR as provided in Revenue Regulations No. 13-98, and it must also be guided by standards of other government agencies exercising regulatory functions over NGOs.
EO 720 requires PCNC to submit periodic reports to its Board of Trustees, particularly on its receipts and expenses incurred in conducting its mandate as the government accrediting entity, consistent with transparency and accountability objectives.
As a non-stock, non-profit entity, PCNC must comply with rules governing tax-exempt organizations, including filing an annual information return to the BIR.
EO 720 provides that in addition to its present membership (including the DOF or BIR representative), the Board of Trustees shall include the Department of Social Welfare and Development (DSWD). It also allows other government representatives on a case-to-case basis depending on the subject of deliberation.
DOF through the BIR issues the Certificate of Registration as Qualified Donee Institution. While PCNC evaluates and recommends, BIR is responsible for granting certification/status.
EO 720 directs the DOF through the BIR to issue necessary rules and regulations, in coordination and in consultation with concerned government agencies.
All corporations/associations/NGOs granted qualified donee institution status prior to EO 720’s issuance remain qualified until the expiration stated in their respective Certificates of Registration.
EO 720 repeals, amends, or modifies Executive Order No. 671 issued on October 22, 2007, to the extent inconsistent with EO 720.
EO 720 takes effect fifteen (15) days after publication in two (2) newspapers of general circulation.
EO 720 states that if any portion is declared unconstitutional, the remaining provisions remain in force. This reduces the risk that an invalid part would nullify the entire order.
The goal was to strengthen the accreditation system by broadening the Board’s composition to include additional government agencies whose mandates involve regulation, coordination, or partnering with NGOs.