FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 508 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Presidential Decree No. 1564 entitled Amending Act No. 4075 otherwise 
known as The Public Solicitation Law was issued on June 11, 1978 to regulate 
the solicitation of donations and voluntary contributions from the public sector in 
order to obviate the illegal fund drives. 
The said law has been in existence and implemented for the past thirty 
(30) years. However, as a result of changes in national and global environment, 
some of its provisions are no longer attuned to the present conditions and 
development in the regulation of public solicitations. Among the issues identified 
in the implementation of the law include: (1) the need to intensify the monitoring 
of individuals/organizations/associations who were issued authority to conduct 
SOlicitation; (2) the need to religiously monitor the proceeds of the solicited funds 
to ensure that these are delivered to the intended beneficiaries or are all used for 
projects for which these are intended for and to protect the general public as well 
as the beneficiaries from being exploited; (3) the presence of several 
organizations conducting fund raising activities without the required solicitation 
permit and (4) the need to increase the penalties or sanctions for violators and/or 
soliciting fund outside the country. 
The Bill "An Act to Regulate Public Solicitation Providing Funds Therefore 
and for Other Purposes" seeks to regulate public solicitation undertaken in order 
to protect the general public from unscrupulous solicitation. 
The Bill, once 
passed will enable the government to effectively and efficiently monitor public 
solicitations. Thus, will provide the public with an open and ready access to 
information regarding the financial operation, projects and activities of the public 
solicitors. 
The Bill shall apply to all National Government Agencies (NGAs), 
Government 
Owned 
and 
Controlled 
Corporations 
(GOCCs), 
State 
Colleges/Universities, Non-Government Organizations (NGOs), religious and 
civic organizations, branch offices and similar organizations, individuals, chapters 
and affiliates of similar international organizations operating in the Philippines 
which are partly or fully financed with funds solicited from or contributed by the 
public or private sectors for charitable or public welfare purpose/so 
The Bill also aims to further enhance mechanisms and the modes in 
conducting public solicitation, increase the share of the proceeds allocated for 
the intended programs and projects and protect the beneficiaries. 
Likewise, 
increase the penalties and tighten sanctions for violations. 


Further, the Bill also seeks to strengthen the partnership and involvement 
of the 
government regulating 
and 
law enforcement agencies 
in 
the 
implementation of the law. 
I n view hereof, approval of this bill is earnestly sought 
Senator 
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FIFTEENTH CONGRESS OF THJ: REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No._5_0_8_ 
) 
) 
) 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
TO REGULATE PUBLIC SOLICITATION 
PROVIDING FUNDS THEREFORE AND FOR OTHER PURPOSES 
Be it enacted by the Senate and tfJe House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. Short Title - This Act shall be known as the "The Public 
Solicitation Act of 2010". 
SEC. 2. 
Purpose. - It shall be the purpose of this Act to regulate public 
solicitation undertaken by organizations, agencies, groups and individuals in 
order to proteCt the general public from unscrupulous solicitation. It also aims to 
establish standards and guidelines and strengthen the system of granting permits 
or authorization primarily to solicit funds or donations from the public for 
charitable, social and/or public welfare purposes 
SEC. 3. 
Coverage. - This Act shall apply to all National Government 
Agencies (NGAs), Government Owned and Controlled Corporations (GOCCs), 
State Colleges/Universities and other government agencies, Non-Government 
Organizations 
(NGOs) 
including 
faith 
based 
and 
civic 
organizations, 
associations, branch offices and similar organizations, individuals, chapters and 
affiliates of similar international organizations operating in the Philippines which 
are partly or fully financed with funds solicited from or contributed by the public or 
private sectors for charitable or public welfare purpose/so 
SEC. 4. 
Exemption on the Coverage. 
Organizations and agencies 
created by laws that specifically confer authority on these organization and 
agencies to solicit and/or conduct fund campaign for charitable and/or public 
welfare purposes shall continue to be covered by its charter. 
Provided, the 
DSWD shall have the authority to monitor their activities and to require these 
organizations and agencies to submit the following as well as other documents 
that the DSWD may require to make an assessment of the performance of these 
organizations and agencies: 
a. Audited fund utilization report of its collections, income and expenditures 
and other financial documents; 
. 
b. Lists of donors and their corresponding addresses and contact numbers; 
C. List of beneficiaries, their corresponding addresses and contact numbers 
and amount or types of assistance extended; and 
d. List of projects completed, location and cost 


SEC. 5. 
Definition of Terms - For purposes of this Act, the following terms 
shall be defined as: 
a. Administrative 
Cost 
-
refers 
to 
the 
costs 
incurred 
in 
the 
management/operation of the conduct of the solicitation activity and/or of 
the soliciting organization. 
b. Beneficiaries - refer to the poor, the vulnerable and the disadvantaged 
sectors or entities who will be benefiting from the proceeds of the public 
solicitation conducted. These include but are not limited to: (1) neglected, 
abandoned, orphaned, exploited children or children under difficult 
circumstances; (2) children in conflict with the law, out of school youth and 
other youth with special needs; (3) persons with disabilities; (4) senior 
citizens; (5) victims of natural or man-made disasters/calamities; (6) 
disadvantaged women and women in especially difficult circumstances; 
(7) indigenous peoples and communities; (8) rebel returnees and (9) poor 
or dysfunctional families and depressed communities. 
c. Charitable purpose/s - refers to the intent to provide services or conduct 
of activities for the beneficiaries indicated on letter b of this Section. 
d. Memorandum of Agreement - refers to a contract executed between 
parties stating among others, the amount or percentage from the proceeds 
to be given to the beneficiaries or the project to be undertaken, the date 
and place where the activity shall be undertaken and date of awarding of 
proceeds or turn-over of project. 
It should clearly state the date and 
duration of the awarding of proceeds. 
e. Organization, agency or individual - refers to all National Government 
Agencies (NGAs), Government Owned and Controlled Corporations 
(GOCCs), State Colleges/Universities and other government agencies, 
Non-Government Organizations (NGOs) including religious and civic 
organizations, associations, branch offices and similar organizations, 
individuals, chapters and affiliates of similar international organizations 
operating in the Philippines desiring to solicit or receive contributions from 
the public for charitable or public welfare purpose/s 
f. 
Program Cost - refers to all expenses incurred in the direct or indirect 
provision of services or goods to the beneficiary including expenses of the 
donee person or agency in its operation and the implementation of 
relevant programs and services. 
g. Public Solicitation - refers to any activity or project intended to generate 
funds, money, materials or other assistance from the public sectors for 
charitable and/or public welfare purposes. 
Categories of public 
solicitation: 
• 
Local Public Solicitation - refers to a solicitation activity conducted 
within the city/municipality 
, 
• 
Provincial Public Solicitation -
refers to a solicitation activity 
conducted within two or more cities/municipalities in a province. 
• 
Regional Public Solicitation -
refers to a solicitation activity 
conducted within two or more provinces in a region 
• 
National Public Solicitation - refers to a solicitation activity conducted 
in two or more regions in the country 
h. Public Welfare Purpose/s - 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. 
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SEC. 6. 
Authority to Issue Permit - The following are authorized to grant 
permits to conduct public solicitation. 
a. 
Department of Social Welfare and Development (DSWD) Secretary or the 
Undersecretary or Regional Director for national or regional public 
solicitation respectively. 
h. 
Provincial 
Governor through 
the 
Provincial 
Social Welfare and 
Development Office (PSWDO) Chief or his/her representative/s for 
provincial public solicitation 
c. 
City/Municipal Mayor through the City/Municipal Social Welfare and 
Development Office (C/MSWDO) Chief or his/her representative/s for 
local pu blic sol icitation 
Provided, that the organization, agency or individual applying for such permit 
complies with the requirements that may be set by the DSWD, PSWDO or 
C/MSWDO respectively including but not limited to the following: 
a. 
Duly accomplished application form signed by the agency head or 
authorized representative. The form shall be prescribed by the DSWD, 
PSWDO or C/MSWDO which shall indicate the intended purpose of the 
solicitation 
h. 
Project proposal on the intended public solicitation activity including the 
work and financial plan on the activity to be undertaken 
c. 
Certified true copy of Certificate of Registration and Articles of 
Incorporation 
and 
by-laws 
with 
the 
Securities 
and 
Exchanges 
Commission (SEC) or other regulatory government agencies, which have 
jurisdiction to regulate the applying organization, agency or individual and 
information. (for non-government). 
d. 
Certification of status of operation and updated certification from SEC or 
other regulatory government agencies, which have jurisdiction to regulate 
the applying organization, agency or individual on the validity of 
registration (for non-government) 
e. 
Notarized Memorandum of Agreement or other written document 
signifying the intended beneficiarylies concurrence as reCipient of the 
solicitation activities 
SEC. 7. Validity of Permit - All permits for the purpose of undertaking 
public solicitation shall be issued by the DSWD, PSWDO or C/MSWDO for a 
stated period of time. 
No organization, agency or individual shall solicit 
contributions or have contributions solicited on its behalf before issuance of its 
permit by the DSWD, PSWDO or C/MSWDO. The solicitation permit shall be 
valid only on the approved date of coverage which in no case shall exceed one 
year within the specified region/s or area/s of the Philippine territory. Its validity 
does not extend to other countries regardless of whether or not the target 
beneficiaries and donors are Filipinos. In such cases, the organization, agency 
or individual should comply with the rules and regulations of the concerned 
countries 
SEC. 8. Fees and Charges -
For national and regional coverage, the 
DSWD shall charge and collect corresponding fees to be determined by the 
Department for the effective implementation of this Act. 
The fees shall be 
remitted to the National Treasury, recorded as a Special Account in the General 
Fund and shall be available to the DSWD through a Special Budget pursuant to 
Section 35, Chapter 5, Book VI of Executive Order No. 292. Likewise, the 
provincial governor and city/municipal mayors shall impose corresponding fees 
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for the provincial and local public solicitation respectively, consistent with the 
Local Government Code and its amendments 
SEC. 9. 
Methods of Public Solicitation - Public solicitation may be done 
using but not limited to the following: 
a. Oral or written request; 
h. Announcement to the press, over the radio or television or by telephone or 
the internet; 
c. Distribution, circulation, publication or posting of written advertisement or 
other publication; 
d. Sale of goods i.e souvenir items, printing, rummage sales, among others; 
e. Benefit shows i.e. concert, fashion show and other forms of entertainment; 
and 
f. 
Other methodologies that may be allowed by the DSWD, PSWDO and/or 
C/MSWDO 
On the other hand, caroling during Christmas season as a form of solicitation and 
the solicitation within the church/mosque or building for public Christian/Muslim 
worship are exempted from the application of solicitation permit from DSWD, 
PSWDO and/or C/MSWDO. 
SEC. 10. 
Tax Deduction or Exemption of Donations and 
Contributions. - The donor by virtue of foregoing provisions shall be entitled to 
allowable deduction in his/her income tax return the equivalent amount of 
donations he/she would give to public solicitation subject to such conditions as 
provided under the National Internal Revenue Code, as amended. 
SEC. 11. Beneficiaries of Fund Campaigns - The applying organization, 
agency or individual for solicitation permit shall be required to submit a duly 
notarized Memorandum of Agreement executed between the parties, which shall 
contain the following: 
a. 
Statement of the purpose for which the solicitation is being conducted; 
h. 
Statement of the amount or percentage from the proceeds to be given to 
the beneficiaries or the project to be undertaken; and 
c. 
The date, duration and place where the activity shall be undertaken and 
the date of awarding of proceeds or turn-over of project. 
The benefiting organization, agency or individual, has the right not to allow its 
name to be used, advertised or publicized as the beneficiary of any public 
solicitation project. 
SEC. 12. Allocation of Proceeds - Not more than fifteen percent (15%) of 
the total proceeds for the fund raising activity of any organization, agency or 
individual shall be expended for the administrative cost of the said fund-raising 
activity or other operations of the agency. The remaining eighty-five percent 
(85%) shall be utilized entirely for projects/programs for the targeted 
beneficiaries. Unless compliance with this section is satisfactorily established on 
the basis of the report as required in Section 13 hereof, no organization, agency 
or individual shall be issued any subsequent permit. Funds collected during the 
conduct of fund campaign activities shall be deposited in a banking institution 
regulated by the Bangko Sentral ng Pilipinas in the name of the organization, 
agency or individual to whom the permit was issued. Book of accounts shall also 
be required in the monitoring/validation of report. 
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SEC. 
13. Monitoring of Pl,lblic Solicitation Activity -
The concerned 
organization, agency or individual to whom the permit was issued shall submit to 
the concerned DSWD offices, PSWDO or C/MSWDO within sixty (60) days after 
the expiration of the issued permit, a report signed and sworn to by the individual 
or at least two authorized officers of the organization/agency, indicating whether 
such permit was used or not. If used, additional documents to be submitted are 
the following: 
a. Audited fund utilization report of its income and expenditures and other 
documents; 
b. List of donors and the amount of donations, their corresponding addresses 
and contact numbers; 
c. List of beneficiaries, their corresponding addresses and contact numbers 
and amount or types of assistance extended; 
d. List of projects completed, location and cost; and 
e. Expired permit authorizing the conduct of local/national fund campaign 
, 
The DSWD, PSWDO or C/MSWDO may in the exercise of their regulatory 
powers, verify the authenticity of the report submitted by conducting spot 
investigations or reviewing the book of accounts of the concerned organization, 
agency or individual, among others. 
Further, the organization, agency or individual shall for each solicitation activity 
maintain and preserve an accurate and detailed book of accounts for not less 
than three (3) years after the completion of such public solicitation activity, which 
shall be available for inspection, at all times, upon demand by the DSWD, 
PSWDO, C/MSWDO. 
SEC. 14. Filing of Complaints - The DSWD, PSWDO or C/MSWDO 
shall on its initiative or upon the complaint of any individual initiate an 
investigation and the filing of complaints in the appropriate court, if warranted, 
against the organization, agency or individual which undertake fund campaigns 
without the necessary permit or which secures such permits through fraudulent 
representation. Provided, however, that any concerned person, may in his/her 
own file a complaint before the Regional Trial Court against any person who shall 
commit any of the acts punishable under Section 16 of this Act. Any law 
enforcement 
agency 
can 
also 
file 
a 
complaint 
against 
any 
organization/agencylindividual engaging in prohibited acts whom they have 
apprehended in accordance with, the Rules of Court. 
SEC. 15. Handling of Complaint - There shall be a Review Committee 
at the concerned DSWD, PSWDO or C/MSWDO who will handle the complaint 
against the organization, agency or individual. The law enforcement agencylies 
e.g. Philippine National Police (PNP), National Bureau Investigation (NBI), Local 
Government Unit (LGU) and Department of Interior and Local Government 
(DILG) among others shall assis~ in the enforcement of this Act. Said Committee 
shall be organized within sixty (60) days upon effectivity of this Act. 
Their 
specific roles and functions as well as the procedures in handling of complaints 
shall form part of the Implementing Rules and Regulations of this Act. 
SEC. 16. Prohibited Acts. This Act prohibits any organization, agency or 
individual to do any of the following acts: 
a. 
Soliciting without securing solicitation permit from DSWD, PSWDO or 
C/MSWDO 
b. 
Soliciting beyond the allowed area of coverage and/or violating the mode 
of solicitation as indicated in the approved solicitation permit 
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c. 
Using falsified or tampered solicitation permit 
d. 
Soliciting with expired solicitation permit 
e. 
Using of solicited funds for purpose/s other than the purpose/s in which 
funds were intended 
Further, all solicited funds from the prohibited acts shall be turned over to 
DSWD, PSWDOs or C/MSWDOsfor the implementation of its social welfare and 
development programs and services 
SEC. 17. Penalties - Violations of this law shall be subject to the following 
penalties; 
a. Any person who violates the provision of this Act shall be punished with 
imprisonment of not less than one (1) year but not more than three (3) 
years or a fine of not less than One Hundred Thousand Pesos 
(p100,000.00) but not more than Five Hundred Thousand Pesos 
(P500,000.00) or both at the discretion of the court 
b. Additionally, for the first offense, the solicitation permit of the concerned 
organization, agency or individual shall be revoked and no permit shall be 
issued to them for a period of two (2) years from the date of violation 
c. For the second offense, the concerned organization, agency or individual 
shall be permanently banned from conducting any solicitation activity. 
Further, its registration and/or license to operate as an organization, 
agency, or individual shall be cancelled and revoked permanently. 
d. When the offender is a foreigner, he/she shall be immediately deported 
and be barred permanently from entering the country after having served 
his/her sentence. 
SEC. 18. Information Dissemination - The DSWD, PSWDO or C/MSWDO 
shall disseminate information on the organizations, agencies and individuals 
issued with public solicitation permits to include the pertinent data such as permit 
number, duration period, methodology to be used and the area/s covered. 
Likewise the DSWD, PSWDO or C/MSWDO shall also inform the public on the 
, 
list of organizations, agencies and individuals whose permits have been 
cancelled or revoked. 
SEC. 19. Implementing Rules and Regulations - The DSWD, Association 
of PSWDO and Associations of C/MSWDO in coordination with the Bureau of 
Internal Revenue (BIR), Department of Finance (DO F), Department of the Interior 
and Local Government (DILG), Department of Trade and Industry (DTI), 
Department of Transportation and Communication (DOTC), Local Government 
Unit (LGU), Philippine National Police (PNP), National Bureau Investigation 
(NBI), Securities and Exchange Commission (SEC) and other concemed 
government agencies and three (3) representatives selected by DSWD from the 
academe, NGOs, media organizations and peoples organizations 
shall 
promulgate the necessary implementing rules and regulations within ninety (90) 
working days from the effectivity of this Act. 
SEC. 
20. Appropriations -
The amount necessary to carry out the 
prOVisions of this Act is hereby authorized to be appropriated in the concemed 
DSWD and Local Government Units General Appropriations Act for the year 
following its enactment into law and thereafter. 
SEC. 
21. Repealing Clause -
Presidential Decree No. 1564, Local 
Government Code of 1991 Book III Title II Ch 3 Art 1 Sec 444 (b) (3) V) and Sec 
455 (b) (3) (v) and all other lawl?, decrees, executive orders and proclamations, 
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rules and regulations or parts thereof, inconsistent with this Act are hereby 
repealed or modified accordingly. 
SEC. 22. Separability Clause 
- In the event that any provision of this 
Act is held invalid or unconstitutional, the other provisions not affected thereby 
shall remain valid and subsisting 
SEC. 23, Effectivity Clause - This Act shall take effect fifteen (15) days after 
its publication in any two (2) newspapers or general circulation. 
Approved, 
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