Scope and Definition of Donee Institutions
- Donee institutions include domestic corporations or associations organized exclusively for religious, charitable, scientific, youth and sports development, cultural or educational purposes, rehabilitation of veterans, social welfare, or NGOs.
- These institutions must be accredited pursuant to rules from the Secretary of Finance and the Commissioner of Internal Revenue.
Accreditation System Establishment
- A system of accreditation for donee institutions was created to ensure only legitimate donations are deductible.
- Initially established via a Memorandum of Agreement between the Philippine Council for NGO Certification (PCNC) and the Department of Finance (DOF) in 1998.
- Formalized through Revenue Regulations No. 13-98 issued by the Bureau of Internal Revenue (BIR).
Role and Composition of the PCNC
- PCNC, a private, non-stock, non-profit corporation created by major NGO networks, serves as the government’s partner in accrediting donee institutions.
- PCNC is responsible for operationalizing the accreditation system, conducting technical evaluations, and recommending institutions for BIR's registration.
- The PCNC Board of Trustees includes representatives from DOF or BIR and is expanded to include the Department of Social Welfare and Development (DSWD) and other relevant government agencies.
Obligations and Compliance of PCNC
- Only corporations or NGOs with valid government registration under regulatory agencies may be processed for accreditation.
- PCNC must follow standards and guidelines established by DOF/BIR and relevant government agencies such as DSWD.
- Required to submit periodic reports to its Board of Trustees, especially concerning financial operations.
- PCNC complies with laws governing tax-exempt organizations, including annual information return filings to BIR.
Certification of Donee Institution Status
- The Department of Finance, via the BIR, retains the final responsibility for issuing Certificates of Registration as Qualified Donee Institutions.
Implementation and Regulatory Authority
- The DOF, through the BIR, coordinates with other government agencies to issue the necessary implementing rules and regulations.
Transitional Provisions
- Existing donee institutions accredited prior to this order remain qualified until their certificate expires.
Repealing and Separability Clauses
- Executive Order No. 671 (2007) and other inconsistent issuances are repealed, amended, or modified.
- Should any provision be declared unconstitutional, remaining provisions shall remain effective.
Effectivity
- The Executive Order takes effect 15 days after publication in two newspapers of general circulation.