THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No. 
INTRODUCED BY HON. MANUEL B. VILLAR, JR. 
EXPLANATORY NOTE 
This bill seeks to implement the State policy enunciated in Section 23, Article 11 of the 
Constitution to'wit: 
kECTION 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 XIII 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 assistance to 
NGOs. 
Early passage of this bill is recommended. 
MANUEL B. V LLAR, JR. 
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JCfN 30 f%:20 
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THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No. 
INTRODUCED BY HON. MANUEL B. VILLAR JR. 
AN ACT TO ENCOURAGE THE PARTICIPATION OF NON-GOVERNMENTAL 
ORGANIZATIONS (NGOs) AND STRENGTHEN THEIR ROLE IN NATIONAL 
DEVELOPMENT AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
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 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 Ff 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 fkom 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 any 
application for government assistance filed by a non-government organization: 


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 
c) When app.ropriate, 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. RepeaIing CIause. 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. 
SECTION 8. Effectivity. This Act shall take effect immediately upon its approval. 
Approved,