FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

2942

House Bill No.

EXPLANATORY NOTE

This bill seeks to create a National Commission on Nongovernmental
Organizations, defining its powers and functions, and appropriating funds
therefore.

Nongovernmental organizations (NGOs) play significant roles in the
national development process because of their accessibility and accountability
to grassroots groups. They represent the organized and voluntary effort of the
people to assist the less fortunate sectors of society. Thus, NGOs are
instrumental in the delivery of basic services where the government sometimes
fails to deliver.

The recognition of the role and contribution of the NGO sector as a
partner in Philippine development has encouraged these organizations to
participate in the governance processes of the country. The rapid increase in
the number of NGOs has prompted the government to regulate these
organizations and ensure that the resources they received are actually used for
the goals and objectives of their organizations.

The establishment of the National Commission on NGOs seeks to create
a body that will exclusively regulate all NGOs in the Philippines. This will also
provide a system for greater collaboration and complementation between the
government and the NGOs.

Further, this bill also seeks to promote professionalism, accountability
and transparency among NGOs and prevent the fly-by-night NGOs or other
organizations established solely for the benefit and self-interest of individuals or
groups under the guise of social development.

In view of the foregoing, approval of this bill is highly and earnestly

recommended.
,
RUFUS B. roecue

MAXIMO B. RODRIGUEZ, JR.


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )
HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No. 2942

AN ACT
REGULATING NONGOVERNMENTAL ORGANIZATIONS, CREATING FOR
THE PURPOSE THE NATIONAL COMMISSION ON NONGOVERNMENTAL
ORGANIZATIONS, DEFINING ITS POWERS AND FUNCTIONS AND
APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled.

SECTION 1. Short Title. — This Act shall be known as the “National
Commission on Nongovernmental Organizations Act.”

SEC. 2. Declaration of Policy. It is hereby declared the policy of the
State to recognize and respect the role of nongovernmental organizations
(NGOs) as practical vehicles for promoting self-reliance and hamessing people
power towards the attainment of economic development and social justice.
Towards this end, the State shall regulate nongovernment organizations in their
pursuit of legitimate and collective interests and aspirations.

SEC. 3. National Commission on Nongovernmental Organizations
(NCNO). — There is hereby created a National Commission on Nongovernment
Organizations, hereinafter referred to as the “Commission,” which shall
coordinate all NGOs in the Philippines. The Commission shall be attached
agency of the Office of the President.

For purposes of this Act, a nongovernment organization (NGO) shail
refer to a non-stock, non-profit domestic corporation or associations organized
and operated for religious, charitable, scientific, youth and sports development,
health, social welfare, cultural or educational purposes, or a combination
bette no part of the net income of which inures to the benefit of any private
individual.

SEC. 4. Composition. — The Commission shall be composed of five (5)
fulltime members from nominees of various NGOs. The NGOs may submit
their nominees to the Office of the President of the Philippines within sixty (60)


days after the effectivity of this Act. The President shall appoint the Chairman
of the Commission and its four (4) Commissioners.

SEC. 5. Qualifications. — The Chairman and the Commissioners must
be citizens of the Philippines who shall have knowledge or experience in
people's organization for at least ten (10) years and must not have been
candidates for elective positions in the immediately preceding election prior to
their appointment.

SEC. 6. Terms of Office. - The President shall appoint the full-time
Chairman and the Commissioner for a term of four (4) years. The terms of the
initial appointees shall be on a staggered basis: the Chairman shall hold office
for a term of four (4) years, the two Commissioners for three (3) years and
another tow Commissioners for two (2) years.

The Commissioners shall hold office until their successors shall have
been appointed and qualified. If members of the Commission fail to complete
their term, their successors shall be appointed by the President of the
Philippines only for the unexpired portion of the term,

SEC. 7. Rank and Emoluments. - The Chairman and the
Commissioners shall have the rank of a Department Secretary and
Undersecretary, respectively. They shall receive the compensation and other
emoluments corresponding to those of a Department Secretary and
Undersecretary, respectively, and shall be subject to the same disqualifications.

SEC. 8. Powers and Functions. - The Commission shall have the
following powers and functions:

a) Prepare and adopt guidelines and policies to determine the
qualification of domestic corporations or associations to be certified
as NGO;

b) Facilitate and coordinate the work of all NGOs operating in the
Philippines;

c) Provide a mechanism of certification for NGOs that meet
established minimum criteria for greater transparency and
accountability;

d) Establish a documentation center on NGOs and their activities and
‘such other activities as may be necessary for the understanding
and promotion of the contribution of NGOs to the national
development;

e) Prepare and adopt policies, guidelines, rules and regulations
necessary for a smooth and orderly operation and for the
development of its personnel;

f) Prepare and approve the organizational structure and staffing
pattern for its officers and employees;

g) Approve the courses of trainings and studies for NGOs and
trainings fees required for training programs as well as for the
rentals of work facilities;

h) Approve the work plans and budget proposals of the Commission
for consideration of appropriate agencies and other institution:



i) Review periodically the administration and programs, performance
and accomplishments of the NGOs it certifies;

j) Promulgate such rules and regulations and exercise such other
powers and functions as may be necessary to carry out effectively
the purpose and objectives of this Act; and

k) Perform such other function as may be necessary for its effective
operations and for continued advancement, growth or development
of NGOs.

SEC. 9. Executive Director. - The shall be an Executive Director who
shall be appointed or designated as such by the Chairman and who shall direct
and supervise the operations of the Commission.

The Executive Director shall be assisted by two Deputy Executive
Directors for the Bureau on Administrative Services and the Bureau on Support
Services and who shall likewise be appointed by the Chairman.

SEC. 10. Qualifications. — No person shall be appointed an Executive
Director or Deputy Executive Director of the Commission unless he is a citizen
of the Philippines, at least thirty five (35) years of age, of good moral character,
a college graduate and has at least ten (10) years experience in peoples
organization.

SEC. 11. Bureaus. - The Bureau on Administrative Services shall be
primarily responsible for providing services related to financial management,
personnel, records, supplies and equipment while the Bureau on Support
Services shall be primarily responsible for plans and programs formulation,
research, system management, public information and production,
transportation, communications and such other functions and responsibilities
as may be necessary and required by the Commission.

SEC. 12. Appointment of Staff and Employees. - The staff and
employees of the Commission shall be appointed by the Chairman of the
Commission.

SEC. 13. Accreditation Office. - There shall be an Accreditation Office
which shall examine, evaluate, accredit and certify NGOs. Newly organized and
existing NGOs shall apply for accreditation and submit to a process of
examination and evaluation.

SEC. 14. Criteria for Examination and Evaluation. - The Accreditation
Office shall evaluate NGOs using the following criteria:

a) Mission and Goals. ~ The mission and goals of the NGO should justify
its existence and shall serve as guideposts for its planning and operations and
a framework for decision-making.

b) Resources. — Focus on the adequacy of the resources and the
effectiveness of the structure and systems of the NGOs which shall include the
organizational structure, human, financial and physical resources. Evaluation
shall take into account the names, positions and qualifications of the individuals


or the committee members who manage and make decisions for the NGOs, its
source of funds and distribution of financial resources.

For purposes of examination and evaluation, the following documents
shall be presented:

4. Minutes of the board meeting;
. Organizational plan;
. Policy manual;
Personne! manual;
Budget for the past two (2) years of proposed projects for the first
two (2) years of operations for newly constituted NGO's; and
. Audited financial statements for the past two (2) yeas for existing
NGOs.

2 ARON

c) Program Implementation. - The NGO must demonstrate that it is
effectively using its resources to accomplish the purposes for which it was
created. There shall be clearly defined policies, priorities and guidelines for
implementing the various programs and projects. Evaluation shall consider
programs and projects implemented within the last two (2) years, description of
how its programs, projects and services are managed and how the following
are carried out:

1. Record keeping, monitoring, evaluating and contingency planning;

2. Programs and projects relative to the needs and priorities of its
beneficiaries; and

3. Documentation or results evaluation and provisions for adequate
training, people participation, development of leaders and eventual
self sufficiency.

d) Planning for the future. - The NGO shall provide evidence that it has
the capacity to plan, implement and monitor its programs and projects.
Evaluation shall provide evidence that the NGO has mechanisms for planning,
implementing and monitoring its programs and projects and for ensuring the
continuity of programs and projects even when external funding has ceased.
Evaluation shall also rely on the presentation of the following exhibits at the
time of visit:
1. Organizational plan; and
2. Monitoring and evaluation tools.

SEC. 15. Issuance of Certificate of Accreditation. - The Accreditation
Office shall issue a Certificate of Accreditation to an NGO upon determination
that it meets the criteria for accreditation: Provided, That the Certificate of
Accreditation shall be valid for a maximum period of ‘five (5) years for existing
NGOs and three (3) years for newly-constituted NGOs: Provided, further, That
the applicant shall be informed of the reasons for the denial of the issuance of
the certificate together with the recommendation, and that the applicant shall
have one (1) year within which to implement the evaluator’s recommendation.

SEC. 16. Authority. — The Commission shall exercise such authority as
may be deemed necessary within its areas of operation to effectively carry out
its powers and functions and to attain its objectives: Provided, That the


Commission may seek the assistance of other government agencies for the
proper implementation of this Act.

SEC. 17. Reportorial Requirement. — Any accredited NGO shall
submit to the Commission an annual report on the progress and
implementation of on-going projects and the list of all kinds of donations. The
annual report shall be made available to the public.

SEC. 18. Appropriation. - The amount of Fifty million pesos
(Php50,000,000.00) is hereby authorized to be appropriated out of the funds in
the National Treasury not otherwise appropriated for the initial operation of the
Commission. Thereafter, the funds necessary shall be included in the General
Appropriations Act.

SEC. 19. Implementing Rules and Regulation. — Within sixty (60) days
after the effectivity of this Act, the Chairman of the Commission shall, in
coordination with nongovernment organizations, issue the necessary rules and
regulations for the effective implementation of this Act.

SEC. 20. Repealing Clause. — All laws, presidential decrees, executive
orders, rules and regulations and other issuances or parts thereof which are
inconsistent with this Act are hereby repealed or modified accordingly.

SEC. 21. Effectivity. - This Act shall take effect fifteen (15) days
following its complete publication in at least two (2) nationals newspapers of
general circulation.

Approved.