Cases

In the revision of the Philippine Tax Code in 1995, donor’s tax exemption for NGOs in the Philippines was almost eliminated. Six NGO networks banded together and negotiated with the government to set up an NGO self-regulating body to ensure that those applying for donor’s tax exemption practice good “housekeeping” and transparency and accountability. PCNC was incorporated in 1997. It was deputized by the Department of Finance for the Bureau of Internal Revenue (BIR).

1997

In 2009, the purpose of PCNC was expanded beyond certification of NGOs for purposes of acquiring the “donee institution status” from BIR to improving effectiveness of NGOs in the Philippines.

415 (as of Dec. 31, 2015)

Non-stock, non-profit organizations engaged in programs (e.g. social welfare and development, health, education, youth development, religious, scientific research and others) that directly or indirectly benefit disadvantaged sectors, voluntarily seek PCNC certification for the seal of “good housekeeping”. The certification entitles them for endorsement to BIR for “donee institution status” and in some instances, qualifies them for funding from several grant-making institutions in the country. The PCNC certification also improves reputation of the NGO in the eyes of the CSO and government sectors.

PCNC divided NGO organizational domains/functions for NGOs as follows:

• Vision, Mission and Goals
• Governance
• Internal Management
• Program Operations
• Financial Management
• Collaborative Linkages

The Philippine Council for NGO Certification

Yes

It is intended to serve as a “code of conduct/ethics”. In effect, compliance with the organizational standards and indicators is fostered to promote “good housekeeping” and accountability and transparency for effectiveness and efficiency among Philippine NGOs.

Yes

It is intended to be a self-regulation mechanism, but applying for PCNC certification is purely voluntary.

Yes

PCNC certification is a seal of “good housekeeping” and accountability and transparency that is necessary before an NGO can be granted “donee institution status” by the Bureau of Internal Revenue. In addition to improving its reputation, by having PCNC certification, an NGO becomes more attractive to donors and grant making institutions, not only for the “donee institution status”, but for the seal of “good housekeeping” and accountability and transparency.

Yes

NGOs that are assessed to be compliant with the PCNC organizational standards are awarded certificates of “good housekeeping” and accountability and transparency.

Yes

A set of standards and indicators per organizational domain were devised in consultation with experts, grant-making institutions and NGOs from different parts of the country.

These standards and indicators are used to measure compliance of NGOs with “good housekeeping” and transparency and accountability.

PCNC employs the services of Volunteer Peer Evaluators in conducting assessment activities that include documentary reviews, interviews of Board Members, management and staff, beneficiaries and partners and project visits. The Volunteer Peer Evaluators rate compliance with the set of organizational standards and indicators and recommends PCNC certification. Final approval for certification rests on the PCNC Board of Trustees and subsequently endorsed to the Bureau of Internal Revenue for “donee institution status” accreditation.

Degree of compliance with each standard/indicator has a corresponding score. The resulting overall average score is used as guide in denying or approving the issuance of PCNC certification to the applicant. For passers, number of years of PCNC certification (1, 3 or 5 years) will depend on how high the overall average rating that an NGO received.