In response to the challenge of the DOF, six (6) of the largest NGO networks in the Philippines got together and established the Philippine Council for NGO Certification, Inc. (PCNC). The six (6) NGO networks are: Association of Foundations; Bishops-Businessmen’s Conference on Human Development; Caucus of Development NGOs (CODE-NGO); League of Corporate Foundations (LCF); National Commission on Social Development (NCSD); and the Philippine Business for Social Progress (PBSP). In 1997, PCNC was registered with the Securities and Exchange Commission.

In 1998, it entered into a Memorandum of Agreement (MOA) with the DOF. The MOA designates PCNC as the certifying organization of NGOs seeking donee institution status from BIR. This means BIR will issue donee institution status only to those endorsed by PCNC.