Guidelines for Monetizing Donations to DSWD

Presidential Memorandum Order No. 36 (Sept 9, 1992) authorizes importation and donation of relief goods to government agencies subject to the Tariff and Customs Code.
Section 105(1) of the Tariff and Customs Code exempts donated imported articles to registered relief organizations from import duties upon certification.
PMO 23 (1992) mandates transfer of forfeited or abandoned used clothing from the Bureau of Customs to DSWD.
Presidential Memorandum Order No. 35 (Sept 8, 1992) encourages agencies and corporations to raise funds for Mt. Pinatubo victims with all donations turned over to DSWD.
DSWD Special Order No. 40 (1994) creates a Task Force Committee tasked to systematize monetization and accounting of donations.

To establish a system for monetizing and accounting foreign and local donations properly.
To ensure all unmonetized donations are recorded and accounted for appropriately.

Applies to foreign and local commodities received by DSWD warehouses Central and Field Offices.
Includes confiscated, forfeited, or abandoned commodities turned over by the Bureau of Customs.
The creation of Monetization Task Forces at both Central and Field Offices:
- Central Office Task Force headed by the BEA Director with members from administration, finance, internal audit, and a resident auditor.
- Field Office Task Force led by the Administrative Officer with pertinent regional officials and a resident auditor.
Task Forces responsible for inventory and inspection of donations submitted for monetization.

Coordination with Bureau of Customs is required to establish "No Commercial Value" certification for foreign donations.
In absence of appraisal indices, clothing monetization standards are set as:
- Unused/new clothing: PHP 400 per family pack (6 pieces).
- Slightly/moderately used: PHP 100 per family pack.
- Extremely used clothing: PHP 50 per family pack.
- Remnants: PHP 30 per kilo; remnants exceeding five yards monetized at 50% less of local market price.
Used clothing distributed in bales/boxes/sacks is monetized at PHP 50 per kilo.
Non-clothing donations monetized at 10% less than local market price index or purchasing retail price.
Recommended procedure includes:
- Inspection by DSWD Acceptance and Inspection Service Committee upon receipt.
- Quarterly submission of monetized donations report by Task Force to Finance Division with copies to Property and Auditing Divisions.
- Frequency of monetization depends on donations received or need.
- Release inventory vouchers (RIV) submitted to Accounting Division before booking releases.

The Bureau of Equipment and Administration (BEA), as Task Force Chairman, submits quarterly reports on receipts and use of monetized donations to the Secretary.
This ensures transparency and proper accounting.
The guidelines mandate strict compliance by all concerned offices and agencies involved in donation handling.