QuestionsQuestions (EXECUTIVE ORDER NO. 720)
EO No. 720 implements Section 34(H) of the National Internal Revenue Code, as amended by Republic Act No. 8424 or the Tax Reform Act of 1997, which allows charitable contributions to accredited donee institutions to be deductible for income tax purposes.
The Philippine Council for NGO Certification (PCNC) is designated as the accrediting entity for donee institutions under EO No. 720.
They must be domestic corporations or associations organized and operated exclusively for religious, charitable, scientific, youth and sports development, cultural or educational purposes, or for the rehabilitation of veterans, and must secure valid registration with the government agency exercising regulatory function over such entity.
The Department of Finance, through the Bureau of Internal Revenue, issues the Certificate of Registration as a Qualified Donee Institution and sets the standards and guidelines for accreditation.
The PCNC Board of Trustees is broadened to include representatives not only from DOF or BIR but also from other concerned government agencies such as the Department of Social Welfare and Development (DSWD), and other government representatives as needed.
The PCNC must comply with existing standards set by DOF and other regulatory agencies, submit periodic reports on its operations and finances to its Board of Trustees, and comply with rules governing tax-exempt organizations including filing annual information returns to the BIR.
No, all corporations, associations, and NGOs that have been granted qualified donee institution status prior to this Executive Order shall remain as Qualified Donee Institutions until the expiration of their respective Certificate of Registrations.
The other provisions of the Order shall remain unaffected and continue to be in force, as stated in the Separability Clause.
EO No. 720 took effect fifteen (15) days after its publication in two newspapers of general circulation.