Manila: President Ferdinand R. Marcos Jr. has streamlined the accreditation process for social welfare and development organizations by designating the Department of Social Welfare and Development (DSWD) as the sole accrediting authority for donee institutions.
According to Philippines News Agency, Executive Order (EO) No. 117, signed by Executive Secretary Ralph Recto on May 7, aims to simplify government processes for non-stock, non-profit social welfare organizations seeking tax-exempt donee status. The order amends EO No. 720 issued in 2008, which previously designated the Philippine Council for NGO Certification (PCNC) as the government's partner in accrediting donee institutions.
Under the new order, the DSWD's Certificate of Registration and Certificate of Accreditation will now be sufficient for the Bureau of Internal Revenue to grant donee-institution status under the National Internal Revenue Code. The Palace said the move is meant to eliminate overlapping requirements that previously forced social welfare and development agencies (SWDAs) to secure separate accreditations from both the PCNC and the DSWD.
The order cited Republic Act 11032, also known as the Ease of Doing Business Act, which mandates government agencies to streamline systems and procedures to improve service delivery. "There is a need to streamline the process for accreditation of SWDAs to further ensure effective and efficient delivery of social welfare and development services to the Filipino people," the order stated.
The EO defines SWDAs as non-stock, non-profit organizations engaged directly or indirectly in social welfare and development programs and funded either by government support, foreign or local assistance, or public fundraising activities. Existing organizations that already hold donee-institution status before the issuance of the order may retain their accreditation until their current certificates expire. After expiration, affected organizations will be required to apply for accreditation directly with the DSWD under the new system.
The Department of Finance, through the Bureau of Internal Revenue, and the DSWD were directed to issue implementing rules and regulations for the order's rollout. The executive order takes effect immediately upon publication in the Official Gazette or a newspaper of general circulation. A copy of the order was posted on the Official Gazette on Tuesday.
