President Ferdinand Marcos Jr. signed an executive order designating the Department of Social Welfare and Development as the sole accrediting body for social welfare and development agencies, streamlining the process for organizations seeking donee-institution status and tax incentives.
Executive Order No. 117, signed on May 7 and uploaded to the Official Gazette on Tuesday, amends Executive Order No. 720 issued in 2008 and removes the requirement for social welfare and development agencies to secure separate accreditation from the Philippine Council for NGO Certification.
Under the new order, the DSWD will serve as the sole accrediting entity for SWDAs, including nonstock, nonprofit corporations, organizations, and associations that provide social welfare programs and services.
The order noted that SWDAs previously had to obtain accreditation from both the PCNC and the DSWD—one for tax-related recognition as a qualified donee institution and another for regulatory compliance.
Mr. Marcos said the move aims to simplify government procedures and improve service delivery in line with Republic Act 11032, or the “Ease of Doing Business and Efficient Government Service Delivery Act of 2018.”
“The Certificate of Registration and Certificate of Accreditation issued by the DSWD to SWDAs, as applicable, shall be deemed sufficient and shall be recognized by the BIR (Bureau of Internal Revenue) in granting donee-institution status,” the order stated.
The BIR recognizes accredited donee institutions for tax deductions on donations under Sections 34(H) and 101(A) of the National Internal Revenue Code.
The measure also repeals Executive Order No. 720, which designated the PCNC, a private nonstock and nonprofit corporation composed of nongovernmental organization networks, as the government’s partner in accrediting donee institutions.
Under the transitory provision, organizations that already hold donee-institution status before the issuance of Executive Order No. 117 may retain their status until their certificates expire. After expiration, they must seek accreditation directly from the DSWD under the new rules.
The Department of Finance, through the BIR, and the DSWD were directed to issue implementing rules and regulations for the order’s implementation.
