Revised Sept 05, 2006

PLEASE READ CAREFULLY

BEFORE APPLYING !
PHILIPPINE COUNCIL FOR NGO CERTIFICATION
(PCNC)
QUALIFYING CONDITIONS BEFORE APPLICATION:
A. The DONEE INSTITUTION STATUS is granted only to the following entities:

Non-stock, non-profit domestic corporations or associations organized under

Philippine laws and operated exclusively for religious, charitable, scientific,
youth and sports development, cultural or educational, social welfare purposes
or for the rehabilitation of veterans;
Civic League or organization not organized for profit but operated exclusively
for the promotion of social welfare;
Non-stock, non-profit educational institution.
The organization has been formally operating for at least one (1) year.

B. A non-stock, non-profit corporation or organization has the following characteristics

(BIR Revenue Regulations No. 13-98):
1. no part of the net income or asset shall belong to or inure to the benefit of any member,
organizer, officer or any specific person;
2. the members of the Board of Trustees do not receive compensation or remuneration;
3. makes utilization of its resources directly for the active conduct of the activities constituting the
purpose or function for which it is organized and operated;
4. the level of administrative expenses on an annual basis does not exceed thirty (30%) of the
total expenses and of the total donations for the taxable year; and,
5. in the event of dissolution, the assets shall be distributed to another accredited NGO
organized for similar purposes, or the State for public purpose/s, or would be distributed by a
competent court of justice to another NGO to be used in such manner as in the judgment of
said court shall best accomplish the general purpose for which the dissolved organization was
organized.

IMPORTANT QUESTIONS FOR THE PROSPECTIVE APPLICANT :

1. Is your organization one of those mentioned in A? If it is not, your organization is not
qualified to be certified as a DONEE INSTITUTION and need not apply for
certification.
2. Does your organization have all the characteristics mentioned in B? If it does not,
your organization is not qualified to be certified as a DONEE INSTITUTION and need
not apply for certification.
3. Do you get or intend to get local donations and wish your local donors to have tax
benefits, such as exemption from donor's tax and deductibility of donations from
taxable income? If not, your organization need not apply for certification.
4. Is your organization operating as a microfinance institution? If it is, then it is NOT
QUALIFIED to apply for PCNC certification.