SIXTEENTH CONGRESS OIl THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B. No. 1897 
Introduced by Sen. Manuel "Lito" M. Lapid 
EXPLANATORY NOTE 
'13 
NOV -4 i' 9 :23 
The Department of Social Welfare and Development (DSWD) has, over the span 
of several years, received reports regarding unscrupulous solicitations by organizations 
and associations. 
Complainants report that government agencies are being 
misrepresented to give syndicates the guise of legality in their solicitation. On other 
occasions, soliciting groups do not identify the intended beneficiaries .of or projects to 
be undertaken by the proceeds of the solicitation. 
The lack of transparency and feedback from organizations and agencies has 
caused many citizens to question the legality, sincerity, and truthfulness of solicitation 
campaigns. Not only does this situation mar the reputation and goals of organizations, 
agencies, and individuals who are sincere in their charitable and public benefit efforts, 
but it also misappropriates funds that the public may be investing for the benefit of 
those Who are less privileged. 
The proposed measure identifies the DSWD and its offices as the regulator of 
public solicitation activities. The system of regulation envisioned under this bill will 
protect the integrity of government agencies and non-government organizations with a 
genuine intent to pursue charitable and public welfare activities that require funding 
through public solicitation. Further, the regulation of public solicitation will promote 
good relations between donors and beneficiaries. 
Passage of this measure is earnestly urged. 
/ AL) 
~ \\1A4C?u:L "LITO" M. LAPID 
'-f"' 
Senato~ iJ10f 
[ 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S. B. NO . .J. 89'7 
Introduced by Senator Manuel "Lito" M. Lapid 
AN ACT 
TO REGULATE PUBLIC SOLICITATION 
AND PROVIDING FUNDS THEREFOR 
'13 
NUV -4 
j' 9 :23 
1 
SECTION l.Short Title. - This Act shall be known as the "Public Solicitation 
2 
Act of 2013." 
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4 
SEC. 2. 
Declaration of Policy. - It is the policy of the State to promote and 
5 
strengthen the partnership between the public and private sectors for the upliftment of 
6 
poor, disadvantaged, marginalized, vulnerable, and underprivileged individuals, 
7 
families, groups, and communities in the country. Towards this end, the State shall 
8 
establish standards and guidelines, and strengthen the system of granting permits or 
9 
authorization primarily to solicit funds or donations from the public for charitable, 
10 
social, and public welfare purposes to ensure that funds are properly utilized for the 
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intended purpose and beneficiaries. 
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SEC. 3. 
Coverage. - This Act shall apply to all National Government 
14 
Agencies (NGAs), Government Owned and Controlled Corporations (GOCCs), State 
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Colleges/Universities, Local Government Units (LGUs) 
and other government 
16 
agencies; Non-Govermuent Organizations (NGOs) including faith based, people's 
17 
organization and civil society organizations, associations, branch offices and similar 
18 
organizations, chapters and affiliates of similar international organizations operating in 
19 
the Philippines which are partly or fully financed with funds solicited from or 
20 
contributed by the public or private sectors for charitable or public welfare purposes. 
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SEC. 4. 
Exemption from Coverage. - The following shall be exempt from 
23 
the coverage of this Act: 
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I 
a. 
Organizations and agencies created by laws that specifically confer 
2 
authority on them to solicit or conduct fund campaign for charitable or public welfare 
3 
purposes shall continue to be covered by their respective charters: Provided, That the 
4 
Department of Social Welfare and Development (DSWD), which may act through the 
5 
Provincial Social and Welfare Development Office (PSWDO), the City Social Welfare 
6 
Development Office (CSWDO), or the Municipal Social Welfare Development Office 
7 
(MSWDO), shall have the authority to monitor the activities of these organizations and 
8 
agencies and to require them to submit documents such as, but not limited to, the 
9 
following: 
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(1) 
Audited fund utilization report of collections, income and 
expenditures, and other financial documents; 
(2) 
A list of donors and their corresponding addresses and contact 
numbers; 
(3) 
A list of beneficiaries with their corresponding signatures, 
addresses, contact numbers, and amount or type of assistance extended; 
(4) 
A list of completed projects indicating the location and cost of the 
same, with complete documentation on the implementation of the project, such 
as through pictures, videos, and testimonies of beneficiaries; and 
(5) 
Such other documents that the DSWD may require in order to 
effectively assess the performance of the organization or agency; 
b. 
c. 
Caroling during the Christmas season as a form of solicitation; and 
Solicitations for religious purposes that are made within religious 
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sanctuaries, such as churches, mosques, and such other building regularly used for 
24 
religious services or worship. 
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26 
SEC. 5. 
Definition of Terms. - For purposes of this Act, the following terms 
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shall be defined as: 
28 
a. 
Administrative cost - refers to the costs incurred in the management and 
29 
operation of solicitation activities, such as sending out mails, printing letters of appeal, 
30 
production of paraphernalia, and such other activities; 
31 
b. 
Beneficiaries -
refer to the persons from lower income brackets, 
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vulnerable, marginalized, and financially or otherwise disadvantaged sectors who will 
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benefit from the proceeds of public solicitations, such as, but not limited to: (1) 
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neglected, abandoned, orphaned, or exploited children; (2) children under difficult or 
35 
sub-par living conditions or circumstances; (3) children in conflict with the law; (4) out 
36 
of school youth; (5) youth with special needs; (6) persons with disabilities; (7) senior 
2 


1 
citizens; (8) victims of natural or man-made calamities; (9) financially or socially 
2 
disadvantaged women or those living under especially difficult circumstances; (10) 
3 
indigenous peoples and communities; (11) rebel returnees; (12) families who are victims 
4 
of armed conflict situations; (13) financially disadvantaged or dysfunctional families; 
5 
and (14) communities in depressed areas, among others; 
6 
c. 
Charitable purpose - refers to an intention to provide services or the 
7 
conduct of activities for beneficiaries, as defined in this Act; 
8 
d. 
Donors - refer to a person, organization, or agency that donates, gives, or 
9 
contributes personal or real property to beneficiaries for charitable or public welfare 
10 
purposes; 
11 
e. 
Memorandum of Agreement - refers to a notarized contract executed foil' 
12 
the purpose of undertaking a project that shall be for charitable or public welfare 
13 
purposes and shall state in particular the following information: (1) the identity of the 
14 
beneficiaries; (2) the amount or percentage from the proceeds that shall be given to said 
15 
beneficiaries; (3) the date and place where the project shall be undertaken; (4) the date 
16 
when the proceeds shall be awarded or the project turned-over to the beneficiaries; (5) 
17 
the duration of time or period throughout which the proceeds shall be distributed or 
18 
may be claimed; and (6) such other information as may be required to identify the 
19 
project or specify and delimit its objectives and nature; 
20 
f. 
Organization or agency 
- refers to all national government agencies 
21 
(NGAs), government-owned and -controlled corporations (GOCCs), State universities 
22 
and colleges (SUCs), local government units (LGUs), and other such other government 
23 
instrumentalities or agencies, non-government organizations (NGOs), including 
24 
religious and civil society organizations, people's organizations, associations, or branch 
25 
offices, and similar chapters, affiliates, branches, or local offices of similarly-natured 
26 
international organizations operating within the Philippines that express the desire to 
27 
or undertake the actual conduct of solicitation or receipt of contributions from the 
28 
public of funds and proceeds that shall be applied to charitable or public welfare 
29 
purposes; 
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g. 
Program cost - refers to all expenses incurred in the direct or indirect 
31 
provision of services or goods to a beneficiary including expenses of the donee in its 
32 
operation and implementation of programs and services relevant to and necessary for 
33 
the project; 
34 
h. 
Public solicitation - refers to any activity or project intended to generate 
35 
funds, goods, or other assistance from the public sectors for charitable or public welfare 
36 
purposes. Categories of public solicitation shall include: 
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(1) 
Local Public Solicitation - refers to a solicitation activity conducted 
within the city or municipality; 
(2) 
Provincial Public Solicitation - refers to a solicitation activity 
conducted in two or more cities or municipalities within a province; 
(3) 
Regional Public Solicitation - refers to a solicitation activity 
conducted in two or more provinces within a region; and 
(4) 
National Public Solicitation - refers to a solicitation activity 
conducted in two or more regions; and 
i. 
Public welfare purpose - refers to any activity or project relative to health, 
education, peace, social welfare and protection, environmental safety, rights, security, 
and safety of citizens, and similar circumstances or conditions. 
S.EC. 6. 
Authority to Issue Permit. - The following shall be authorized to 
14 
grant and issue permits to eligible organizations or agencies for the conduct of 
15 
allowable solicitation activities: 
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a. 
The Secretary or Undersecretary of the Department of Social Welfare and 
Development (DSWD), or their designated representative, for national public 
solicitation; 
b. 
The Regional Director of the DSWD, or his designated representative, for 
regional public solicitation; 
c. 
The head of the PSWDO, or his designated representative, in coordinatiop 
with the Provincial Governor, for provincial public solicitation; 
d. 
The head of the CSWDO or MSWDO, or his designated representative, in 
coordination with the City or Municipal Mayor, for local public solicitation. 
SEC. 7. 
Requirements. - Applicant organizations or agencies shall comply 
with such requirements as may be imposed by the DSWD, PSWDO, CSWDO, or 
MSWDO, as the case may be, such as, but not limited to the following: 
a. 
A duly accomplished and signed application form, in the form prescribed 
by the DSWD, PSWDO, CSWDO, or MSWDO, as the case may be, which shall be 
completed by the head of the applicant organization or agency head or his designated 
representative; 
b. 
A project proposal for the intended public solicitation activity with an 
attached work and financial plan; 
c. 
Certified true copies of the Certificate of Registration, Articles of 
Incorporation, and By-Laws, as filed with the Securities and Exchanges Commission 
4 


1 
(SEC) or such other regulatory agency with jurisdiction to register and monitor the 
2 
applicant organization or agency; 
3 
d. 
A certification from the SEC or such other regulatory agency regarding 
4 
the good standing and continuing operations of the applicant organization or agency 
5 
and its good standing and updated certification from SEC or other regulatory 
6 
government agency, which has jurisdiction to regulate the applying organization or 
7 
agency on the validity of its registration, if non-government organization or private 
8 
agency; 
9 
e. 
A notarized Memorandum of Agreement, as defined in this Act, or such 
10 
other similar written contract signifying the intended beneficiary's knowledge of and 
11 
concurrence with the solicitation activity; 
12 
f. 
A Board Resolution authorizing the conduct of the solicitation activity; 
13 
and 
14 
e. 
Such other requirements to be imposed by the DSWD, PSWDO, CSWDO, 
15 
or MSWDO, as the case may be. 
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18 
19 
20 
21 
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SEC. 8. 
Validity of Pennit. - All permits for the purpose of undertaking 
public solicitation shall be valid for a specified period not exceeding one (1) year. No 
permit issued pursuant to this Act shall be valid for activities or beneficiaries located 
outside of the Philippines. 
SEC. 9. 
Fees and Charges. -
The DSWD or such other concerned 
23 
implementing agencies may impose reasonable fees and charges on applicant 
24 
organizations or agencies: Provided, That the collection and liquidation of fees or charges 
25 
shall be in compliance with existing laws thereon. 
26 
27 
SEC. 10. 
Methods of Public Solicitation. -
Public solicitation may be 
28 
conducted through any of the following methods: 
29 
30 
31 
32 
33 
34 
a. 
Written requ,ests, such as letters of appeal, printed envelopes, cards, and 
similar forms; 
b. 
Campaigns through mass media, such as through television, cinema, 
radio, magazine, newspapers, billboards, and others; 
c. 
Publication, distribution, circulation, or posting of written advertisements; 
d. 
Sale of goods such as souvenir items, rummage sale materials, printed 
35 
materials, and the like; 
5 


1 
e. 
Benefit shows, concerts, fashion shows, and other forms of entertainment 
2 
shows; 
3 
4 
f. 
g. 
Distribution or leaving of donation boxes, coin banks, and the like; or 
Other methods that may be allowed by the DSWD, PSWDO, CSWDO, or 
5 
MSWDO, as the case may be. 
6 
7 
The ceiling amount for the cost of public solicitation paraphernalia shall be set in 
8 
the implementing rules and regulations to be issued pursuant to this Act. 
9 
10 
SEC. 11. 
Tax Deduction or Exemption of Donations and Contributions. -
11 
The donor, by virtue of the foregoing provisions, shall be entitled to an allowable 
12 
deduction in his income tax return equivalent to the amount of the donation given, 
13 
pursuant to the provisions thereon as found in the National Internal Revenue Code, as 
14 
amended. 
15 
16 
SEC. 12. 
Allocation of Proceeds. - Not more than fifteen percent (15%) of 
17 
the total proceeds from public solicitation activities shall be allocated to and expended 
18 
for administrative costs. The remaining eighty-five percent (85%) shall be distributed fo 
19 
or utilized entirely for programs directly benefitting or to be received by the named 
20 
beneficiaries. Unless compliance with this section is satisfactorily established on the 
21 
basis of the report as required in Section 13 hereof, no organization or agency shall be 
22 
issued any subsequent permit. 
23 
Funds collected during the conduct of fund campaign activities shall be 
24 
deposited in a banking institution regulated by the Bangko Sentral ng Pilipinas in an 
25 
account under the name of the organization or agency to which the permit was issued. 
26 
Books of account shall also be required in the monitoring or validation of report. The 
27 
date, duration, and place where the consolidation and accounting of proceeds shall be 
28 
undertaken and the date of the awarding or turn-over of the proceeds to the 
29 
beneficiaries, shall be witnessed by the authorized representatives from the DSWD, 
30 
PSWDO, CSWDO, or MSWDO for national, regional, provincial, city, or municipal fund 
31 
campaigns respectively. 
32 
33 
SEC. 13. Monitoring of Public Solicitation Activity. -
The concerned 
34 
organization or agency to which the permit was issued shall submit to the concerned 
35 
DSWD office, PSWDO, CSWDO, or MSWDO, as the case may be, within sixty (60) days 
36 
after the expiration of the issued permit, a report signed and sworn to by at least two 
6 


1 
authorized officers of the organization or agency, indicating whether such permit was 
2 
used or not. If the activity authorized under the permit was undetaken, the following 
3 
documents should be submitted: 
4 
a. 
Audited fund utilization report of income and expenditures; 
5 
b. 
List of donors indicating their corresponding addresses, contact numbers, 
6 
and amount of donation; 
7 
c. 
List of beneficiaries indicating their corresponding addresses, contact 
8 
numbers, and amount or type of assistance received; 
9 
d. 
List of projects undertaken and completed with an indication of their location 
10 
and cost; and 
11 
e. 
Expired original permit authorizing the conduct of national or local fund 
12 
campaigns. 
13 
However, if the activity authorized under the permit is not undertaken, the 
14 
concerned organization or agency shall submit the following records: 
15 
a. 
Justification for not conducting or not completing the solicitation activity 
16 
within the validity period; and 
17 
b. 
Expired original permit authorizing the conduct of public solicitation. 
18 
The DSWD, PSWDO, CSWDO, or MSWDO may, in the exercise of their 
19 
regulatory powers, verify the authenticity of the report submitted by conducting spot 
20 
investigations or by reviewing the books of account of the concerned organization or 
21 
agency, which should be maintained and preserved for not less than three (3) years 
22 
after the completion of the public solicitation activity. 
23 
24 
SEC. 14. 
Filing of Complaints. - The DSWD, PSWDO, CSWDO, or MSWDO 
25 
may, whether motu proprio or upon the complaint of any individual, initiate an 
26 
investigation and the filing of complaints in the appropriate court against any 
27 
organization or agency that undertakes fund campaigns without first securing the 
28 
necessary permit therefor or that secures such permits through fraudulent 
29 
representation: Provided, That the foregoing shall not prohibit any concerned person or 
30 
law enforcement agency to file a complaint before the Regional Trial Court against any 
31 
person who shall commit any of the acts punishable under Section 16 of this Act. 
32 
33 
SEC. 15. 
Handling of Complaint. - There shall be a Review Committee at the 
34 
concerned DSWD office, PSWDO, CSWDO, or MSWDO that will handle complaints 
35 
against an organization or agency. Said Committee shall be organized within sixty (60) 
36 
days after the effectivity of this Act. The Committee shall be composed of a minimum 
7 


1 
of seven (7) members consisting of three. (3) representatives from concerned 
2 
government agencies, two (2) from non-government organizations and two (2) from the 
3 
DSWD, PSWDO, CSWDO, or MSWDO. 
The specific roles and functions of the 
4 
Committee as well as the procedures in handling of complaints shall form part of the 
5 
Implementing Rules and Regulations of this Act. 
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7 
SEC. 16. 
Prohibited Acts. - This Act prohibits any organization or agency to 
8 
do any of the following acts: 
9 
a. 
Soliciting without securing solicitation permit from DSWD, PSWDO, 
10 
CSWDO, or MSWDO; 
11 
b. 
Soliciting beyond the allowed area of coverage or through unapproved 
12 
modes of solicitation, as indicated in the approved solicitation permit; 
13 
c. 
Using falsified or tampered solicitation permits; 
14 
15 
d. 
e. 
Soliciting under an expired solicitation permit; 
Using solicited funds for purposes other than those intended or indicated 
16 
in the solicitation permit; 
17 
18 
f. 
g. 
Using clients or beneficiaries in conducting solicitation activities; 
Using proceeds from solicitation activities to finance lottery games, games 
19 
of chance, or such other activities that are contrary to law, public policy, and morals; 
20 
h. 
Using solicitation paraphernalia that portray dehumanizing pictures, 
21 
information, or situations of the intended beneficiary. 
22 
23 
Solicited funds attributable or connected to and resulting from prohibited acts 
24 
shall be turned over to the DSWD, PSWDO, CSWDO, or MSWDO that issued the 
25 
solicitation permit. The specific procedures in the management and turn-over of such 
26 
funds shall be stipulated in the implementing rules and regulations to be issued 
27 
pursuant to this Act. 
28 
29 
SEC. 17. 
Penalties. - Violations of this law shall be subject to the following 
30 
penalties: 
31 
a. 
Imprisonment and Fine. Any person who violates the provision of this Act 
32 
shall be punished with imprisonment of not less than one (1) year but not more than 
33 
three (3) years or a fine of not less than One Hundred Thousand Pesos (P100,OOO.OO) but 
34 
not more than Five Hundred Thousand Pesos (P500,OOO.OO), or both at the discretion of 
35 
the court. 
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1 
b. 
Cancel/ation of Permit. For the first offense, the solicitation permit of the 
2 
concerned organization or agency shall be revoked and no permit shall be issued to 
3 
them for a period of two (2) years from the date of violation. For the second offense, the 
4 
concerned organization or agency shall be permanently prohibited from conducting any 
5 
solicitation activity. 
6 
c. 
If the offender is a foreign individual, he shall be immediately deported 
7 
after service of his sentence. 
8 
d. 
If the offender is an organization or association, the officers and members 
9 
who knowingly participated in the prohibited acts Act shall be held liable. 
10 
11 
SEC. IS. 
Information Dissemination. - The DSWD, PSWDO, CSWDO, or 
12 
MSWDO shall disseminate information on issued public solicitation permits clearly 
13 
indicating the association or agency name, permit number, duration of the activity, 
14 
coverage area, and method of solicitation to be used. Likewise the DSWD, PSWDO, 
15 
CWSDO, or MSWDO shall also provide the public with a list of organizations or 
16 
agencies whose permits have been cancelled or revoked. 
17 
18 
SEC. 19. 
Implementing Rules and Regulations. - The Department 6f Social 
19 
Works and Development, in coordination with other concerned government agencies 
20 
and three (3) 
representatives from the academe, relevant non-government 
21 
organizations, and the media shall promulgate implementing rules and regulations for 
22 
this Act within ninety (90) working days from its effectivity. 
23 
24 
SEC. 20. 
Appropriations. - The amount necessary to carry out the provisions 
25 
of this Act is hereby authorized to be appropriated in the concerned DSWD and Loc~l 
26 
Government Units General Appropriations Act for the year following its enactment into 
27 
. law and thereafter. 
28 
29 
SEC. 21. 
Repealing Clause. 
-
Presidential Decree No. 1564, Local 
30 
Government Code of 1991 Book III Title II Ch 3 Art 1 Sec 444 (b) (3) V) and Sec 455 (b) 
31 
(3) (v) and all other laws, decrees, executive orders and proclamations, rules and 
32 
regulations or parts thereof, inconsistent with this Act are hereby repealed or modified 
33 
accordingly. 
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1 
SEC. 22. 
Separability Clause. - In the event that any provision of this Act is 
2 
held invalid or unconstitutional, the other provisions not affected thereby shall remain 
3 
valid and subsisting. 
4 
5 
6 
SEC. 23. 
Effectivity Clause. - This Act shall take effect fifteen (15) days after 
its publication in any two (2) newspapers or general circulation. 
Approved, 
10