EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
ol I'jr tT'-ri fi.in
'19 JUL-8 P2 56
S. No.
2S1
Introduced by Senator MANUEL "LITO" M. LAPID
AN ACT
TO REGULATE PUBLIC SOLICITATION AND 
PROVIDING FUNDS THEREFOR
EXPLANATORY NOTE
The Department of Social Welfare and Development (DSWD) has received 
reports 
regarding 
unscrupulous 
solicitations 
by 
various 
organizations 
and 
associations. 
Complainants 
report 
that 
government 
agencies 
are 
being 
misrepresented to syndicates that guise of legality in their solicitation. On other 
occasions, soliciting groups do not identify the intended beneficiaries of, or projects 
to be undertaken out of 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 
the 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.
hWrtluEL " f f r o "  M. LAPID
Senator


EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
S. No.
SENATE
281
'(Offitr o( ilK t: ir ti.ity
'19 JUL-8 P2--56
Introduced by Senator Manuel "Lito" M. Lapid
AN ACT
TO REGULATE PUBLIC SOLICITATION AND 
PROVIDING FUNDS THEREFOR
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Be it enacted by the Senate and the House o f Representatives o f the 
Philippines in Congress assembled.
Section 1. Short Title. -  This Act shall be known as the "Public Solicitation
Act".
Sec. 2. Declaration o f Policy. -  It is the policy of the State to promote and 
strengthen the partnership between the pubiic and private sectors for the upliftment 
of poor, disadvantaged, marginalized, vulnerabie, and underprivileged individual, 
families, groups, and communities in the country. Towards this end, the State shaii 
estabiish 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 public welfare purposes to ensure that funds are properly utilized for the 
intended purpose and beneficiaries.
Sec. 3. Coverage. -  This Act shaii apply to all National Government Agencies 
(NGAs), 
Government 
Owned 
and 
Controlled 
Corporations 
(GOCCs), 
State 
Colleges/Universities, Local Government Units (LGUs) and other government 
agencies; Non-Government Organizations (NGOs) including faith based, peoples 
organization and civil society organizations, associations, branch offices and similar


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organizations, chapters and affiliates of similar international organizations operating
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in the Philippines which are partly or fully financed with funds solicited from or
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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 the
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coverage of this Act:
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a. Organizations and agencies created by laws that specifically confer authority
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on them to solicit or conduct fund campaign for charitable or public welfare
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purposes shall continue to be covered by their respective charters: Provided,
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That the Department of Social Welfare and Development (DSWD), which may
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act through the Provincial Social and Welfare Development Office (PSWDO),
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the City Social Welfare Development Office (CSWDO), or the Municipal Social
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Welfare Development Office (MSWDO), shall have the authority to monitor
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the activities of these organizations and agencies and to require them to
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submit documents such as, but not limited to, the following:
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(1) Audited 
fund 
utilization 
report 
of collections, 
income 
and
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expenditures, and other financial documents;
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(2) A list of donors and their corresponding addresses and contact
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numbers;
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(3) A 
list of beneficiaries with 
their corresponding 
signatures,
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addresses, contact numbers, and amount or type of assistance
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extended;
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(4) A list of completed projects indicating the location and cost of the
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same, with complete documentation on the implementation of the
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project, such as through pictures, videos, and testimonies of
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beneficiaries; and
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(5) Such other documents that the DSWD may require in order to
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effectively assess the performance of the organization or agency;
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b. Caroling during Christmas season as a form of solicitation; and
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c. Solicitations for religious purposes that are made within religious sanctuaries
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such as churches, mosques, and such other building regularly used for
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religious services or worship.


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Sec. 5. Definition o f Terms. -  For purposes of this Act, the following terms
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shall be defined as:
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a. Administrative cost -  refers to the costs incurred in the management and
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operation of solicitation activities, such as sending out mails, printing letters
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of appeal, production of paraphernalia, and such other activities;
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b. Beneficiaries -  refer to the persons from lower income brackets, vulnerable,
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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:
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(1) neglected, abandoned, orphaned, or exploited children; (2) children
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under difficult or sub-par living conditions or circumstances; (3) children in
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conflict with the law; (4) out of school youth; (5) youth with special needs;
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(6) persons with disabilities; (7) senior citizens; (8) victims of natural or man-
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made calamities; (9) financially or socially disadvantaged women or those
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living under especially difficult circumstances; (10) indigenous peoples
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communities; (11) rebel returnees; (12) families who are victims of armed
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conflict situations; (13) financially disadvantaged or dysfunctional families;
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and (14) communities in depressed areas, among others;
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c. Charitable purpose -  refers to an intention to provide services or the conduct
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of activities for beneficiaries, as defined in this Act;
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d. Donors -  refer to a person, organization, or agency that donates, gives, or
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contributes personal or real property to beneficiaries for charitable or public
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welfare purposes;
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e. Memorandum o f Agreement -  refers to a notarized contract executed for the
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purpose of undertaking a project that shall be for charitable or public welfare
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purposes and shall state in particular the following information: (1) the
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identity of the beneficiaries; (2) the amount or percentage from the proceeds
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that shall be given to the said beneficiaries; (3) the date and place where the
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project shall be undertaken; (4) the date when the proceeds shall be
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awarded or the project turned-over to the beneficiaries; (5) the duration of
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time or period throughout which the proceeds shall be distributed or may be


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claimed; and (6) such other information as may be required to identify the
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project or specify and delimit its objectives and nature;
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f. Organization or Agency -  refers to all national government agencies (NGAs),
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government-owned and controlled corporations (GOCCs), State universities
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and colleges (SUCs), local government units (LGUs), and other government
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instrumentalities 
or 
agencies, 
non-government 
organizations 
(NGOs),
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including religious and civil society organizations, people's organizations,
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associations, or branch offices, and similar chapters, affiliates, branches, or
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local offices of similarly-natured international organizations operating within
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the Philippines that express the desire to or undertake the actual conduct of
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solicitation or receipt of contributions from the public of funds and proceeds
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that shall be applied to charitable or public welfare purposes;
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g. Program Cost -  refers to all expenses incurred in the direct or indirect
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provision of services or goods to a beneficiary including expenses of the done
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in its operation and implementation of programs and services relevant to and
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necessary for the project;
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h. Public Solicitation -  refers to any activity or project intended to generate
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funds, goods, or other assistance from the public sectors for charitable or
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public welfare purposes. Categories of public solicitation shall include:
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1. Local Public Solicitation -  refers to a solicitation activity conducted
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within the city or municipality;
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2. Provincial Public Solicitation -  refers to a solicitation activity conducted
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in two or more cities or municipalities within a province;
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3. Regional Public Solicitation -  refers to a solicitation activity conducted
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in two or more provinces within a region; and
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4. National Public Solicitation -  refers to a solicitation activity conducted
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in two or more regions; and
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I. Public Welfare purpose -  refers to any activity or project relative to health,
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education, peace, social welfare and protection, environmental safety, rights,
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security, and safety of citizens, and similar circumstances or conditions.
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Sec. 6. Authority to Issue Permit -  The following shall be authorized to grant
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and issue permits to eligible organizations or agencies for the conduct of allowable
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solicitation activities:
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a. The Secretary or Undersecretary of the Department of Social Welfare and
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Development (DSWD), or their designated representative, for national
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public solicitation
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b. The Regional Director of the DSWD, or his designated representative, for
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regional public solicitation;
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c. The head of the PSWDO, or his designated representative, in coordination
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with the Provincial Governor, for provincial public 
solicitation;
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d. The head of CSWDO or MSWDO, or his designated representative, in
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coordination with the City of Municipal Mayor, for local public solicitation.
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Sec. 7. Requirements. -  Applicant organizations or agencies shall comply with
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such requirements as may be imposed by the DSWD, PSWDO, CSWDO, or MSWDO,
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as the case may be, such as, but not limited to the following:
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a. A duly accomplished and signed application form in the form of prescribed
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by the DSWD, PSWDO, CSWDO, or MSWDO, as the case may be, which
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shall be completed by the head of the applicant organization or agency
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head or his designated representative;
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b. A project proposal for the intended public solicitation activity with an
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attached work and financial plan;
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c. Certified true copies of the Certificate of Registration, Articles of
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Incorporation, and By-Laws, as filed with the Securities and Exchanges
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Commission (SEC) or such other regulatory agency with jurisdiction to
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register and monitor the applicant organization or agency;
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d. A certification from the SEC or such other regulatory agency regarding the
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good standing and continuing operations of the applicant organization or
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agency and its good standing and updated certification from SEC or other
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regulatory government agency, which has jurisdiction to regulate the
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applying organization or agency on the validity of its registration, if non-
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government organization or private agency;


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e. A notarized Memorandum of Agreement, as defined in this Act, or such 
other similar written 
contract signifying 
the 
intended 
beneficiary's 
knowledge of and concurrence with the solicitation activity;
f. A Board Resolution authorizing the conduct of the solicitation activity; and
g. Such other requirements to be imposed by the DSWD, PSWDO, CSWDO, or 
MSWDO, as the case may be.
Sec. 8. Validity o f Permit. -  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 
implementing agencies may impose reasonable fees and charges on applicant 
organizations or agencies: Provided, That the collection and liquidation of fees or 
charges shall be in compliance with existing laws thereon.
Sec. 10. Methods o f Public Solicitation. -  Public solicitation may be conducted 
through any of the following methods:
a. Written requests, 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 
materials, and the like;
e. Benefit shows, concerts, fashion shows, and other forms of entertainment 
shows;
f. Distribution or leaving of donation boxes, coin banks, and the like; or
g. Other methods that may be allowed by DSWD, PSWDO, CSWDO, or MSWDO, 
as the case may be.


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The ceiling amount for the cost of public solicitation paraphernalia shall be set 
in the implementing rules and regulations to be issued pursuant to this Act.
Sec. 11. Tax Deduction or Exemption o f Donations and Contributions. -  The 
donor, by virtue of the foregoing provisions shall be entitled to an allowable 
deduction in his income tax return equivalent to the amount of the donation given, 
pursuant to the provisions thereon as found in the National Internal Revenue Code, 
as amended.
Sec. 12. AHocation o f Proceeds. -  Not more than fifteen percent (15%) of the 
total proceeds from public solicitation activities shall be allocated to and expended 
for administrative costs. The remaining eighty-five percent (85%) shall be 
distributed to or utilized entirely for programs directly benefitting or to be received 
by the named beneficiaries. Unless compliance with this section is satisfactorily 
established on the basis of the report as required in Section 13 hereof, no 
organization or agency 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 (BSP) 
in an account under the name of the organization or agency to which the permit was 
issued. Books of account shall also be required in the monitoring or validation of 
report. The date, duration, and place where the consolidation and accounting of 
proceeds shall be undertaken and the date of the awarding or turn-over of the 
proceeds to the beneficiaries, shall be witnessed by the authorized representatives 
from the DSWD, PSWDO, CSWDO, or MSWDO for national, regional, provincial, city, 
or municipal fund campaigns respectively.
Sec. 
13. 
Monitoring o f Public Solicitation Activity. -  The concerned 
organization or agency to which the permit was issued shall submit to the concerned 
DSWD office, PSWDO, CSWDO, or MSWDO, as the case may be, within sixty (60) 
days after the expiration of the issued permit, a report signed and sworn by at least 
two (2) authorized officers of the organization or agency, indicating whether such


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permit was used or not. If the activity authorized under the permit was undertaken,
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the following documents should be submitted:
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a. Audited fund utilization report of income and expenditures;
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b. List of donors indicating their corresponding addresses, contact numbers, and
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amount of donation;
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c. List of beneficiaries indicating their corresponding addresses, contact
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numbers, and amount or type of assistance received;
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d. List of projects undertaken and completed with an indication of their location
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and cost; and
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e. Expired original permit authorizing the conduct of national or local fund
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campaigns.
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However, if the activity authorized under the permit is not undertaken, the
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concerned organization or agency shall submit the following records:
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a. Justification for not conducting or not completing the solicitation activity
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within the validity period; 
and
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b. Expired original permit authorizing the conduct of public solicitation.
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The DSWD, PSWDO, CSWDO, or MSWDO may, in the exercise of their regulatory
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powers, verify the authenticity of the report submitted by conducting spot
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investigations or by reviewing the books of account of the concerned organization or
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agency, which should be maintained and preserved for not less than three (3) years
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after the completion of the public solicitation activity.
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Sec. 14. Filing o f Complaints. -  The DSWD, PSWDO, CSWDO, or MSWDO may,
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whether motu proprio or upon the complaint of any individual, initiate an
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investigation and the filing of complaints in the appropriate court against any
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organization or agency that undertakes fund campaigns without securing the
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necessary permit therefor or that secures such permits through fraudulent
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representation: Provided, That the foregoing shall not prohibit any concerned person
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or law enforcement agency to file a complaint before the Regional Trial Court
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against any person who shall commit any of the acts punishable under Section 26 of
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this Act.
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Sec. 15. Handling o f Complaint -  There shall be a Review Committee at the
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concerned DSWD office, PSWDO, CSWDO, or MSWDO that will handle complaints
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against an organization or agency. Said Committee shall be organized within sixty
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(60) days after the effectivity of this Act. The Committee shall be composed of a
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minimum of seven (7) members consisting of three (3) representatives from
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concerned government agencies, two (2) from the DSWD, PSWDO, CSWDO, or
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MSWDO. The specific roies and functions of the Committee as well as the
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procedures in handling of complaints shail form part of the Implementing Rules and
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Regulations of this Act.
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Sec. 16. Prohibited Acts. -  This Act prohibits any organizations or agency to do
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any of the following acts:
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a. Soiiciting without securing solicitation permit from DSWD, PSWDO, CSWDO,
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or MSWDO;
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b. Soiiciting beyond the aliowed area of coverage or through unapproved modes
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of solicitation, as indicated in the approved solicitation permit;
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c. Using falsified or tampered soiicitation permits;
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d. Soiiciting under an expired solicitation permit;
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e. Using solicited funds for purposes other than those intended or indicated 
in
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the solicitation permit;
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f. Using clients or beneficiaries in conducting solicitation activities;
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g. Using proceeds from solicitation activities to finance lottery games, games of
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chance, or such other activities that are contrary to law, public policy, and
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morals;
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h. Using 
solicitation 
paraphernalia 
that 
portray 
dehumanizing 
pictures,
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information, or situations of the intended beneficiary.
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Solicited funds attributable or connected to and resulting from prohibited acts
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shall be turned over to the DSWD, PSWDO, CSWDO, or MSWDO that issued the
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solicitation permit. The specific procedures in the management and turn-over of
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such funds shall be stipulated in the implementing rules and regulations to be issued
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pursuant to this Act.


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Sec. 17. Penalties. -  Violations of this law shall be subject to the following 
penalties:
a. Imprisonment ad Fine. 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 discretion of the court.
b. Cancellation o f Permit. For the first offense, the solicitation permit of the 
concerned organization or agency shall be revoked and no permit shall be 
issued to them for a period of two (2) years from the date of violation. For 
second offense, the concerned organization or agency shall be permanently 
prohibited from conducting any solicitation activity.
c. If the offender is a foreign individual, he shall be immediately deported after 
service of his sentence.
d. If the offender is an organization or association, the officers and members 
who knowingly participated in the prohibited acts Act shall be held liable.
Sec. 18. Information Dissemination. -  The DSWD, PSWDO, CSWDO, or 
MSWDO shall disseminate information on issued public solicitation permits clearly 
indicating the association or agency name, permit number, duration of the activity, 
coverage area, and method of solicitation to be used. Likewise, the DSWD, PSWDO, 
CSWDO, or MSWDO shall also provide the public with a list of organizations or 
agencies whose permits have been cancelled or revoked.
Sec. 19. Implementing Rules and Regulations. -  The Department of Social 
Works and Development, In coordination with other concerned government agencies 
and three (3) representatives from the academe, relevant non-government 
organizations, and the media shall promulgate implementing rules and regulations 
for this Act within ninety (90) working days from its effectivity.
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Sec. 20. Appropriations. -  The amount necessary to carry out the provisions
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of this Act is hereby authorized to be appropriated in the concerned DSWD and Local
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Government Units General Appropriations Act for the year following its enactment
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into law and thereafter.
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Sec. 21. Repeaiing Ciause. -  Presidential Decree No. 1564, Local Government
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Code of 1991 Book III Title II Ch 3 Art 1 Sec 444 (b) (3) (v) and Sec 455 (b) (3) (v)
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and all other laws, decrees, executive orders and proclamations, rules and
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regulations parts thereof, inconsistent with this Act are hereby repealed or modified 
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accordingly.
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Sec. 22. Separabiiity Ciause. -  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 of general circulation.
Approved,
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