FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 998 
INTRODUCED BY HON. MANNY VILLAR 
EXPLANATORY NOTE 
This bill seeks to implement the State policy enunciated in Section 23, Article II 
of the Constitution to wit: 
SECTION 23. The State shall encourage non-governmental, 
community-based or sectoral organizations that promote the welfare of 
the nation. 
This bill defines non-governmental organizations (NGOs) and establishes 
mechanisms by which the Philippine government may assist NGOs to expand their 
operations to cover more areas in the country. As it is, the NGO is distinct from the 
people's organizations (POs) covered in Section 15, Article Xlll of the Constitution. The 
constitutional proceedings characterized NGOs as independent private organizations 
involved in promoting the welfare of the majority of the population. Such organization 
have been in existence in the Philippines for several decades, devoting their energies to 
community or sectoral development, environmental conservation, humanitarian work 
and human rights promotions, among many other countries. 
Government attempts at forming people's organization have generally been 
ineffective. The initiative to organize must come from the people themselves. NGOs 
have been far more successful in this area. 
NGO activities are therefore all important factors in accelerating rural 
development by the people themselves. The government should tap NGOs to reach 
more people in the rural areas. It should provide assistance to NGOs so that they may 
supplement and complement the role of the government in the development of the 
countryside. 
This bill provides the mechanisms for the government units to provide such 
Early passage of this bill is recommended. 
assistance to NGOs. 
MANNYv'Y 


FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
Senate Bill No. 998 
INTRODUCED BY HON. MANNY VILLAR 
AN ACT TO ENCOURAGE THE PARTICIPATION OF NON-GOVERNMENTAL 
ORGANIZATIONS (NGOs) AND STRENGTHEN THEIR ROLE IN NATIONAL 
DEVELOPMENT AND FOR OTHER PURPOSES 
Be if enacted by the Senate and the House of Represenfafives of the Philippines 
SECTION 1. Declaration of Policy. The State shall hereby recognizes the 
indispensable role of non-governmental organizations in carrying out activities that 
promotes the welfare of the majority of the population, particularly the disadvantages 
sectors, and adopt a policy of encouragement and support for non-governmental 
organizations as hereinafter defined. To this end, the Government shall take measures 
to provide NGOs the opportunities to participate in and assist in government programs 
for national development. 
SECTION 2. Definition of terms. As used in this Act, the following terms shall 
be construed as follows: 
a) "Non-governmental Organizations" hereinafter referred to as NGOs, also 
known as Private Voluntary Organizations, or Voluntary Agencies, are 
private, non-profit or non-stock organizations or corporations, registered with 
the Securities and Exchange Commission (SEC), and engaged in medium or 
long-term activities, however financed or organized, such as but not limited 
to: 
community organizing, community education, sectoral development, 
humanitarian or charity work, disaster relief, family planing, physical and 
social rehabilitation, and social amelioration. 
b) "Umbrella 
Non-governmental Organization" is 
a 
non-governmental 
organization registered with the Securities and Exchange Commission which 
maintains a membership consisting of other non-governmental organization, 
whether or not registered with the Securities and Exchange Commission, for 
the purpose of promoting, financing, coordinating or consolidating NGO 
activities and projects as enumerated in the immediately preceding 
paragraph. 
c) "Implementing Agency" shall refer to any government subdivision, agency or 
instrumentality, whether national or local, including government-owned or 
controlled corporations, which shall assist, facilitate and support non- 
governmental organization activities and project 
or deliver goods and 
services to the public with the assistance of or in corporation with non- 
governmental organizations, for which purpose, funds have been accordingly 
in Congress assembled: 


appropriated or are available therefor from Official Development Assistance 
(ODA) or any other source. 
SECTION 3. 
Assistance and Support to NGOs. 
A non-governmental 
organization which has duly applied for assistance with the concerned implementing 
agency shall be eligible for financial and other assistance to carry out projects and 
activities which the implementing agency deems proper for the execution and 
implementation by a non-governmental organization: Provided, that such implementing 
agency shall utilize the implementing agency’s own programs. The assistance may 
consist of: 
a) Project Grants 
b) Matching Grants 
c) Concessional Loans 
d) Technical, Training and Organizational Development Support 
e) Such other assistance or support as may be determined to be appropriate 
and proper by the Secretary or Head of the Department, Commission or 
Agency. 
The arrangements for assistance to NGOs shall be out into writing in a contract 
form or memorandum of agreement stating therein the terms and conditions for the 
grant of financial support by the implementing agency. The following stipulations shall 
be included in such contract form or memorandum of agreement: 
1) Duration of the agreement or contract; 
2) Amount involved for the project; 
3) Terms and conditions of disbursement; 
4) Reports to be submitted periodically by the NGO 
5) Verification of reports and provision for performance inspection; and 
6) Audit of funds released to the NGO 
SECTION 4. Application and Eligibility for Assistance. 
A non-governmental 
organization seeking to avail of government support or assistance as provided in 
section 3 hereof shall submit a project proposal to the implementing agency concerned. 
The implementing agency concerned shall determine the requirements and conditions 
to be complied with by the applicant NGO for the availment of assistance, with due 
regard for the expeditious and efficient processing of the application by the NGO. 
A non-governmental organization may apply for government assistance through 
the sponsorship of an umbrella NGO in which the applicant NGO is a member. In such 
event, the umbrella NGO shall be made a party signatory to the contract to be entered 
into between the concerned implementing agency and the applicant NGO, for and in 
behalf of the latter mentioned applicant NGO. 
Any application of an NGO for government assistance and support shall be free 
from all fees and charges, such as but not limited to filing fees, processing fees, and 
service fees. 


The implementing agency shall be guided by the following criteria in evaluating 
a) Record of performance or accomplishments of the NGO; 
b) Suitability of the organizational structure and competence of the volunteer or 
manpower complement of the NGO to perform the service activity or project 
being contracted: and 
any application for government assistance filed by a non-government organization: 
c) When appropriate, financial management capability of the NGO. 
SECTION 5. 
Implementing Agencies Rules and Regulations. 
Government 
assistance and support to NGOs shall be primarily carried out by implementing 
agencies as defined in Section 2 (c) of this Act. 
The necessary core rules and regulations to effectively carry out the purposes of 
this Act, including guidelines on the manner of auditing funds disbursed to NGOs shall 
be promulgated jointly by the Secretary of Finance and the Secretary of Budget to be 
supplemented by the operational regulations to issue thereafter by the head of the 
implementing agency extending assistance to qualified NGOs: Provided, that such 
auditing guidelines shall, in accordance with existing audit rules, provided for the 
safeguarding, monitoring and reporting of released funds and promote procedures 
which will not unduly hamper the ability, efficiency, flexibility and independence of 
NGOs to implement or execute government-financed projects and activities: Provided 
finally, that the implementing agencies shall assist NGOs in keeping and maintaining 
their books of account and financial records consistent with existing government 
auditing rules. 
It shall be the responsibility of the concerned implementing agencies to publish 
and disseminate information on the availability of government assistance and the 
implementation of rules and regulations therefor. 
Furthermore, such implementing 
agencies shall maintain facilities and services for NGOs at their regional offices and 
provincial offices for NGOs at their regional offices and provincial offices, if any, to 
make it more convenient for NGOs to avail of government assistance as provided in this 
Act. 
SECTION 6. Repealing Clause. All laws, decrees, orders, letters of instructions, 
letters of implementation, rules and regulations or part or parts thereof inconsistent with 
the provisions or any provisions of this Act, are hereby amended, modified, repealed or 
superseded insofar as they are inconsistent with the provisions of any of this Act. 
SECTION 7. Separability Clause. If any provisions of this Act or the application 
of such provision to any person or circumstance is held invalid for any reason, the 
remainder of this Act or the application of such provision to other persons or 
circumstances shall not be affected thereby. 
This Act shall take effect immediately upon its 
SECTION 8. 
Effectivity. 
approval. 
Approved,