When it started operations in 1999, the original mission of PCNC was to be the pre-eminent certifying body of Philippine NGOs aspiring for “donee institution status” issued by the Bureau of Internal Revenue (BIR). Starting 2009, or 10 years after, PCNC expanded its mission to improving the effectiveness of “Philippine NGOs so that they become increasingly accountable, credible and capable in providing services to those in need and to be instrumental in creating a culture of giving”.
PCNC certification ensures an NGO's service
excellence and accountability.
PCNC for integrity and accountability
of the Filipino NGO Sector
For more focus and clarity, the purpose of PCNC was revised in 2019, to focus on ensuring integrity of the Philippine NGO sector and improvement of the reach, capability and effectiveness of certified organizations. It also emphasizes the fact that PCNC is not limited to organizational evaluation of certification applicants, but more so, it provides guidance to NGOs in identifying organizational strengths and areas for improvement and what mitigating actions could be taken to improve operations.
The proposed Comprehensive Tax Reform Program in 1995 would have eliminated donors’ tax exemption and deductibility of donations to NGOs as a means of increasing revenues for the Government. Realizing that this would have an enormous detrimental effect on NGOs and Foundations that are dependent on local donation, representatives of the NGO sector lobbied with the Department of Finance (DOF) to retain the tax incentives given to local donors of Philippine NGOs. The DOF understood the predicament that the elimination of the tax incentives to donors would have brought to NGOs and challenged the NGO community to establish a peer review mechanism that would ensure that only qualified NGOs will be allowed to receive tax exempt and tax deductible contributions under the 1995 tax law.
The NGO community saw this as an opportunity and a responsibility to complement the efforts of the Government in ensuring that resources received by non-stock, non-profit organizations are used and maximized for their intended purposes.
PCNC Founding Organizations
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.
21 years ago, six of the largest NGO networks in the Philippines got together and established the Philippine Council for NGO Certification, Inc. A logo reflecting PCNC’s original mission: to be the pre-eminent certifying body of Philippine NGOs aspiring for “donee institution status” was designed, with the circle on the top, symbolizing PCNC, and the six triangles or rays, representing its six founding networks.
Our new logo has the PCNC circle in the middle and 9 rays representing the variety of foundations and NGOs that comprise PCNC’s membership: NGOs, family foundations, corporate foundations, educational institutions, faith-based foundations, religious organizations, alumni associations and foundations, networks and federations, and other non-stock non-profits that may not be exactly classified as one of these types of organizations.
From one perspective, the logo can be viewed as a wheel – connoting movement and dynamism, both essential to staying relevant in our fast moving, ever-changing world. With PCNC as the cog that keeps the NGOs anchored to the core values of integrity, accountability, and commitment to purpose; and its members as the spokes that will keep the NGO wheel moving to expand the sector’s reach, capability, effectiveness and sustainability.
From another perspective, the logo looks like a flower – illustrating life, love, and hope – what every NGO aims to bring to the people and communities it reaches out to.
”PCNC requirements areMs. Ampy ValeroBoard of Trustees, The Alvarez Foundation Philippines
rigid but gave us a better guide
in managing our organization.
As of the end of 2018,
PCNC has accomplished the following:
- Developed an NGO Certification System that focuses on integrity, capability and effectiveness of NGOs;
- Conducted a total of more than 2,500 evaluations (including renewals) involving about 1,190 NGOs, 1,018 of which were certified by PCNC. Among the PCNC certified organizations, 1,002 received BIR Donee Institution Status;
- Trained more than 1,000 Volunteer Peer Evaluators from the senior staff of PCNC certified organizations and members of the Philippine Institute for Certified Public Accountants (PICPA) from which a pool of dedicated volunteers are now conducting evaluation of NGOs;
- Consulted by associations of NGOs from other countries (e.g. Afghanistan, India, Indonesia, Japan, Pakistan, Taiwan, Bhutan and Cambodia) and presented the PCNC experience in 20 international forums held in the United States, Australia, Uganda and different parts of Europe and Asia;
- Trained 830 small NGOs on good governance and management;
- Developed and published two (2) manuals on basic NGO governance and management and a set of primers on NGO management.