Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills
Quezon City

EIGHTEENTHCONGRESS
First Regular Session

House Bill No.4341

Introduced by: Rep. Josephine Y. Ramirez Sato

EXPLANATORY NOTE

This bill aims to protect the general public from the unscrupulous solicitation,
thus, establishing the standards and guidelines for organizations, agencies, groups
and individuals undertaking such activities. Furthermore, it aims to strengthen the
system of granting permits and/ or authorization to solicit funds and/ or donations
from the public for charitable, social, and public welfare purposes. It is also the
intention of this bill to ensure that solicited funds are properly utilized according to
its intended purposes and given to its rightful beneficiaries.

In view of the foregoing, the immediate passage of this bill is earnestly sought



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills
‘Quezon City

EIGHTEENTHCONGRESS
First Regular Session

House Bill No. EE

Introduced by: Rep. Josephine Y. Ramirez Sato

AN ACT REGULATING PUBLIC SOLICITATIONS AND PROVIDING
PENALTIES FOR VIOLATION THEREOF, REPEALING FOR THE PURPOSE
ACT NO. 4075, AS AMENDED BY PRESIDENTIAL DECREE NO. 1564,
OTHERWISE KNOWN AS THE SOLICITATION PERMIT LAW

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 “Public Solicitation
Act”.

SEC. 2. Declaration of Policy. - It is hereby declared a policy of the State to
regulate public solicitation undertaken by organizations, agencies, groups and
individuals in order to protect the general public from unscrupulous solicitation and
to ensure that funds are properly utilized for the intended purpose and beneficiaries.
Towards this end, standards and guidelines are hereby established to strengthen the
system of granting permits or authorization primarily to solicit funds or donations
from the public.

SEC. 3. Definitions of Terms. - As used in this Act:

(a) Administrative cost refers to the cost incurred in the management and
operation of the conduct of the solicitation activity which include the
application fee for a solicitation permit, cost of mailing, printing of
letters of appeal and other paraphernalia;

(b) Beneficiaries refer to Filipino citizens who are poor, vulnerable,
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marginalized and disadvantaged sectors or entities who will benefit
from the proceeds of public solicitation conducted. These include:

(1) Children who are abandoned, neglected, orphaned,
voluntarily committed, abused and exploited, street
children, children with disabilities, children in conflict with
the law, children in need of special protection, children in
cultural communities, and children victims of natural
disasters;

(2) Out-of-school youth and other youth with special needs;

(3) Women in especially difficult circumstances;

(4) Persons with disabilities;

(5) Senior citizens;

(6) Individuals, families, and communities who are in crisis
situation, including those who are internally displaced due
to armed conflict and other developmental projects, and
victims of natural and human-induced calamities or
disasters;

(7) Individuals suffering from serious, terminal or chronic
diseases and illnesses such as cancer and kidney failure;

(8) Rebel returnees and families who are victims of armed
conflict situation; and

(9) Poor or dysfunctional families in depressed communities
among others.

(c) Blacklisting refers to the list or registry of a person, organization, and
agency which are being prohibited from conducting any solicitation
activity due to violations committee as provided in this Act;

(4) Charitable purpose refers to the intent to provide services or conduct of
activities for the improvement of the quality of life of beneficiaries as
defined in this section, or to promote the welfare of the general public
which include the conduct of educational, arts and cultural activities;

(©) Donor refers to an individual, organization or agency that donates
something for charitable or public welfare purposes;

() Individual refers to a person who is a parent, guardian, or immediate
relative within the third (3") degree of consanguinity or affinity of a
patient suffering from a chronic disease that requires long-term
expensive medication desiring to solicit or receive charitable
contributions from the public;

(g) Organization or agency refers to all national government agencies
(NGAs), government-owned and -controlled corporations (GOCCs),
state universities and colleges (SUCs), local government units (LGUs)
and other government agencies; nongovernment organizations (NGOs)

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including faith-based organizations, civil society organizations, people's
organizations; associations and similar organizations, 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 purposes;

(h) Program cost refers to all direct and indirect expenses incurred in the
provision of services or goods to the beneficiaries of the public
solicitation including expenses of the donee person, organization or
agency in its operation and the implementation of relevant programs
and services;

() Public refers to the populace, society, masses or people in general within
the Philippine territory where the public solicitation is to be undertaken;

(i) Public solicitation refers to any activity or project intended to generate
funds, goods, or other assistance from the public for charitable or public
welfare purposes;

() Public welfare purpose refers to any activity or project relative to the
promotion of health, education, peace, social welfare and protection,
environmental safety, rights, security and safety of citizens and similar
circumstances or conditions including disaster relief operations and
climate change management; preservation and promotion of culture and
arts;

()) Revocation refers to the cancellation of the issued solicitation permit due
to the commission of any violations as prov: ided in this Act;

(m)Solicitation permit refers to a certificate of authority issued by the
Department of Social Welfare and Development (DSWD), the Provincial
Social Welfare and Development Office (PSWDO), the City Social
Welfare and Development Office (CSWDO), or the Municipal Social
Welfare and Development Office (MSWDO) to an individual,
organization or agency applying for an authorization to solicit donations
or voluntary contributions for charitable or public welfare purposes.

SEC. 4. Coverage. - This Act shall apply to all NGAs, GOCCs, SUCs, public
schools, LGUs and other government agencies, individuals, CSOs including faith-
based organizations, people's organizations, NGOs, academe, associations and
similar organizations, 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 sector for charitable or public welfare
purposes.


Notwithstanding the foregoing, this Act shall not be used as a defense against
a violation committed by a government official or employee against Section 7(d) of
Republic Act No. 6713, otherwise known as the “Code of Conduct and Ethical
Standards for Public Officials and Employees” , on soliciting gift or anything monetary
value from any person in the course of their official duties or in connection with any
operation being regulated, or any transaction which may be affected by the function
of their office.

SEC. 5. Exemption from Coverage. - The following shall be exempt from
application of solicitation permit:

(a) Organizations and agencies created by laws that specifically confer
authority on these organizations and agencies to solicit or conduct fund
campaign for charitable or public welfare purposes shall continue to be
covered by their charters and shall not be required to acquire a solicitation
permit. Provided, That the DSWD and concerned Local Social Welfare and
Development Office (LSWDO) shall be informed in writing before the
conduct of the solicitation campaign and shall have the authority to monitor
their activities and to require these organizations and agencies to submit
reports pertaining to the conduct of the public solicitation and the
utilization of funds solicited: Provided, further, That the DSWD shall
maintain and periodically update the list of organizations ad agencies that
are exempted from application of solicitation permit;

(b) Caroling during holiday season, regardless of purpose; and

(©) Solicitations for religious purposes that are made within religious
sanctuaries, such as churches, mosques, and such other building structure
regularly used for religious service or worship.

SEC. 6. Solicitation Permit; Requirements, - No solicitation permit shall be issued
to an individual, organization or agency without first complying with the
documentary requirements:

(a) Duly accomplished application form signed by the individual,
organization or agency head or an authorized representative;

(b) Project proposal approved by the head of the applicant or in the case of
an organization, a proposal approved by the head of the applicant
organization or agency on the intended public solicitation activity
including the work and financial plan on the activity to be undertaken,
and information and details relative to the intended beneficiaries;

(©) Personal profile of individual applicant showing information attesting
to the applicant's identity and capability and integrity to launch a

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solicitation drive or in the case of an organization, certified true copy of
Certificate of Registration and Articles of Incorporation and Bylaws with
the Securities and Exchange Commission (SEC) or other regulatory
government agency which has jurisdiction to regulate the organization
or agency;

(d) Updated certification of good standing from the SEC or other regulatory
government agency which has jurisdiction to regulate the organization
or agency;

(©) Notarized written agreement or any similar document signifying the
concurrence of the intended beneficiaries as recipient of the solicitation
activity; and

() Notarized board resolution or other written authorization for the
organization or agency's planned solicitation activity which shall ensure
strict compliance to the standard ratio on fund utilization.

For the purpose of this Act, the documentary requirements shall be
waived for institutions or organizations seeking funding support during
disaster response activities.

SEC. 7. Authority to Issue Permit. - The following officials are authorized to
grant a solicitation permit to an eligible individual, organization or agency that will
conduct solicitation activities for charitable and public welfare purposes:

(a) Secretary of the DSWD or a duly authorized Undersecretary of the
DSWD for national public solicitations;

(b) DSWD Regional Director or any duly authorized representative for
regional public solicitations;

(c) Provincial Governor through the PSWDO Chief or any duly authorized
representative for provincial public solicitations; and

(@) City or Municipal Mayor through the CSWDO Chief or the MSWDO
Chief or any duly authorized representative for local public solicitations.

SEC. 8. Validity of Permit, - All solicitation permits issued by the DSWD, the
PSWDO, the CSWDO, or the MSWDO shall be valid only on the approved date of
coverage which in no case shall exceed one (1) year within the specified city,
municipality, region or areas in the Philippines. Its validity shall not extend outside
of the Philippines even if the target beneficiaries and donors are Filipinos.


‘An organization or agency with a good track record in conducting public
solicitation, as determined by the DSWD, the PSWDO, the CSWDO, or the MSWDO
may be granted a solicitation permit with a longer validity period which shall not
exceed two (2) years.

SEC. 9. Types of Public Solicitation. ~ Public solicitation shall be categorized as
follows:

(a) Local public solicitation refers to a solicitation activity conducted within
a city or municipality;

(b) Provincial public solicitation refers to a solicitation activity conducted
within two (2) or more cities or municipalities in the same province;

(c) Regional public solicitation refers to a solicitation activity conducted
within two (2) or more provinces in a region; and

(a) National public solicitation refers to a solicitation activity conducted in
two (2) or more regions.

SEC. 10. Solicitation During Calamities or Disasters. - In times of natural or
human-induced calamities or disasters, and the intended beneficiaries of the public
solicitation are disaster-stricken areas or communities where a state of calamity has
been declared by the President of the Philippines or by the local sanggunian, a
temporary solicitation permit may be issued to the applicant individual, organization
or agency upon submission of a duly accomplished application form, as provided for
in Section 6(a) of this Act, signed by the applicant individual, or head of the
organization or agency or an authorized representative.

The validity of the temporary solicitation permit shall be determined by the
concerned DSWD office, PSWDO, CSWDO, or MSWDO in coordination with the
Disaster Risk Reduction and Management Council office or equivalent office
depending on their assessment of the impact of the calamity or disaster to the affected
areas, The applicant individual, organization or agency shall comply with the
requirements provided under Section 6 of this Act within the period set forth by the
concerned DSWD office, PSWDO, CSWDO, or MSWDO.

SEC. 11. Fees and Charges. - For national and regional public solicitations, the
DSWD may charge reasonable fees corresponding to the cost only of preparing the
solicitation permit. 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 of Executive Order No. 292, otherwise known
as the “ Administrative Code of 1987”. For provincial and local public solicitations, the
governor, city or municipal mayor may impose reasonable fees corresponding to the

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cost only of preparing the solicitation permit, subject to the provisions of Republic Act
No. 7160, otherwise known as the “Local Government Code of 1991” and other
existing laws.

SEC. 12. Methods of Public Solicitation. - Public solicitation may be done
through any of the following:

(@) Written request such as letters of appeal, envelopes, cards and other
similar forms;

(b) Mass media campaign through television, cinema, radio, magazines,
newspapers, billboards, social media and other similar forms;

(0 Distribution, circulation, publication or posting of written
advertisement or other similar forms;

(a) Rummage sales and sale of goods including souvenir items;

(e) Benefit shows including concerts, fashion shows and other forms of
entertainment;

( Fun runs, marathon, cycling, and other forms of sports activities;
(g) Popularity contests;
(h) Donation boxes, coin banks and other similar forms; and

() Other methodologies that may be allowed by the DSWD, the PSWDO,
the CSWDO, or the MSWDO.

Provided, That requests for financial assistance from the Philippine
Charity Sweepstakes Office (PSO) and similar agencies shall not be covered
under this Act.

SEC. 13. Allocation of Proceeds. - Not more than thirty percent (30%) of the total
proceeds from the fund-raising activity of any individual, organization or agency shall
be expended for administrative cost. The remaining fund shall be utilized entirely for
projects or programs for the targeted beneficiaries. Provided, That in cases where
solicitation campaigns are conducted to fund programs or projects to help disaster or
calamity-stricken areas or resolve national or local crises, a more flexible term in the
allocation of the proceeds is allowed. Unless compliance with this section is
satisfactorily established on the basis of the report in Section 15 of this Act, no
individual, organization or agency shall be issued any subsequent solicitation permit.


It shall be mandatory for funds collected during public solicitations to be
deposited in a banking institution regulated by the Bangko Sentral ng Pilipinas (BSP)
in the name of the individual, organization or agency to which the permit was issued.
‘A book of accounts shall also be required in the monitoring and validation of the
report.

The date, duration and place where the consolidation and accounting of
proceeds shall be undertaken and the date of the awarding or turnover of the proceeds
to the beneficiaries shall be witnessed by the authorized representatives from the
DSWD, the PSWDO, the CSWDO, or the MSWDO for national and regional,
provincial, city, or municipal public solicitation, respectively.

SEC. 14. Monitoring of Public Solicitation. - The individual, organization or
agency to which the solicitation permit was issued shall submit to the concerned
DSWD office and LSWDO the following documents:

(a) Not later than sixty (60) days after the issuance of the permit, duly
notarized report signed and sworn to by the individual or by at least two
(2) authorized officers of the organization or agency, indicating whether
the solicitation permit was used or not.

(1) If the issued solicitation permit is not used, the individual,
organization or agency shall submit to the appropriate DSWD
office, PSWDO, CSWDO, or MSWDO the justification for not
conducting or continuing the solicitation activity within the
validity period, and surrender the issued permit;

(2) If the solicitation permit was used, an initial report on the status
of utilization of the issued permit shall be submitted;

(b) Not later than sixty (60) days after the expiration of the issued solicitation
permit, the following documents shall be submitted:

(1) Notarized fund utilization report of its income and expenditures
sworn to by the individual, or in the case of an organization or
agency, the president and treasurer of the organization or agency;

(2) List of donors with their corresponding addresses and contact
numbers, and the amount of donations;

(3) List. of beneficiaries with their corresponding signatures,
addresses and contact numbers and amount or types of assistance
extended;

(4) List of projects undertaken and completed with an indication of
their location and cost; and

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(6) Expired original solicitation permit.

Provided, That the DSWD shall keep and maintain a record of the
organizations with solicitation permits including information of their validity.

To assist in the monitoring of public solicitation activities, the public
may inquire from the DSWD or concerned LSWDO whether a public
solicitation activity is legitimate or not.

SEC. 15. Reportorial Requirements for Exempt Organizations. - Those
organizations or agencies that are exempt from securing a solicitation permits as
specified in Section 5 of this Act should inform the DSWD and concerned LSWDO in
writing prior to conducting solicitation activity and submit reportorial requirements
at the end of the fiscal year when public solicitation has been conducted. Reports shall
consist of the following documents

(a) Notarized fund utilization report of its collections, income and
expenditures sworn to by the president and treasurer of the organization
or agency;

(b) List of donors and their corresponding addresses and contact numbers;

(0) List of beneficiaries with their corresponding signatures, addresses and
contact numbers and amount or types of assistance extended;

(@) List. of projects completed, location and cost with complete
documentation on the project including pictures, videos and testimonies
of beneficiaries; and

SEC. 16. Regulatory Powers. - The DSWD, the PSWDO, the CSWDO, or the
MSWDO may, in the exercise of their regulatory powers, verify the authenticity of the
report submitted by conducting spot monitoring or reviewing of the book of accounts:
of the concerned individual, organization or agency. Likewise, the DSWD is granted
visitorial powers to ensure that the soliciting individuals and organizations are
legitimate and the funds solicited are properly utilized.

Further, the individual, organization or agency 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, the PSWDO, the
CSWDO, or the MSWDO. Likewise, the DSWD, the PSWDO, the CSWDO, or the
MSWDO shall keep a record of the reports and supporting documents submitted by
individuals, organizations or agencies previously granted a solicitation permit.

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SEC. 17. Filing of Complaints, - The DSWD, the PSWDO, the CSWDO, or the
MSWDO shall, on its own initiative or upon a verified complaint of any person, refer
to the appropriate law enforcement agency or the prosecutor's office for investigation
and the filing of complaint in the appropriate court any violation of the provisions of
this Act.

Any individual or law enforcement agency may file a complaint before the

appropriate court against any individual, organization or agency, which shall commit
or is engaged in any of the acts punishable under Section 19 of this Act.

SEC. 18. Role of Law Enforcement Agencies. - Alllaw enforcement agencies shall
assist the DSWD, the PSWDO, the CSWDO, or the MSWDO in the efficient and
effective enforcement of this Act.

SEC. 19. Prohibited Acts. - The following acts are punishable under this Act:

(a) Soliciting without securing a solicitation permit from the DSWD, the
PSWDO, the CSWDO, or the MSWDO;

(b) Soliciting beyond the allowed area of coverage as indicated in the
approved solicitation permit;

(c) Violating the mode of solicitation as indicated in the approved
solicitation permit;

(a) Using a falsified or tampered solicitation permit;
(c) Soliciting with an expired solicitation permit;

() Using the solicited funds for purposes other than those indicated in the
application form;

(@ Including the beneficiaries as part of the strategy or mechanism in
conducting the solicitation activity which tends to exploit the
beneficiaries;

(h) Use of lottery and other games of chance; and

(i) Using solicitation paraphernalia which portray a dehumanizing picture,
information or situation of the intended beneficiaries; and

() Disbursement of solicited funds are not in accordance with the standard
fund utilization ration.

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SEC. 20. Penalties. - Any individual, organization or agency who violates the
provisions of Section 19 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.

‘Additionally, for the first offense, the solicitation permit of the individual,
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 the second offense, the
individual, organization or agency shall be permanently banned from conducting any
solicitation activity.

A final and executory judgment finding an organization or agency liable for
violating any of the prohibited acts under Section 19 of this Act for a second time shall
be a ground for the cancellation and revocation of the organization or agency's
registration or license to operate and shall be endorsed to the concerned government
regulatory agency for its appropriate action.

If the offender is an organization or agency, the incumbent officers of the
organization ot agency at the time of the commission of the offense who have
knowingly participated or who shall have knowingly permitted or failed to prevent
its commission shall be held liable.

If the offender is a foreigner, the offender shall, after serving sentence, be
immediately deported and barred permanently from entering the country.

SEC. 21. Failure to Report. ~ Failure to comply with the reportorial requirements
as provided under Sections 14 and 15 of this Act shall be punished with a fine of not
less than one hundred thousand pesos (P100,000.00) but not more than five hundred
thousand pesos (P500,000.00).

Additionally, for the first offense, the solicitation permit of the individual,
organization or agency shall be revoked and no permit shall be issued to the offending
party for a period of one (1) year from the date of violation.

For the second offense, the solicitation permit of the individual, organization
or agency shall be revoked and no permit shall be issued to the offending party for a
period of two (2) years from the date of violation.

For the third offense, the individual, organization or agency shall be
permanently banned from conducting any solicitation activity

SEC. 22. Forfeiture of Proceeds, - All solicited funds from an unauthorized public
solicitation shall be forfeited in favor of the government.

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SEC. 23. Information Dissemination. ~ The DSWD, the PSWDO, the CSWDO, or
the MSWDO shall periodically publish a list of all individuals, organizations or
agencies with public solicitation permits. The list shall include the permit number,
duration period, methodology to be used and the areas covered. They shall also
Publish a list of individuals, organizations or agencies whose solicitation permits have
been cancelled or revoked.

SEC. 24. Implementing Rules and Regulations. - Within ninety (90) days from the
approval of this Act, the Secretary of the DSWD, in consultation with the Secretary of
the Department of the Interior and Local Government, the Secretary of the
Department of Transportation (DOTr), the Secretary of Department of Information
and Communications Technology (DICT), the Director General of the Philippine
National Police (PNP), the Commissioner of the SEC, the Association of PSWDO, the
Association of CSWDO, the Association of MSWDO, and three (3) representatives
selected by the DSWD from among the academe, NGOs and media organizations,
shall promulgate the necessary rules and regulations for the effective implementation
of this Act.

SEC. 25. Repealing Clause. - Act No. 4075, as amended by Presidential Decree
No. 1564, otherwise known as the Solicitation Permit Law, is hereby repealed. Section
444(b)(3)(v) and Section 455(b)(3)(v) of the Local Government Code of 1991 and all
other laws, decrees, executive orders and proclamations, rules and regulations or
Parts thereof inconsistent with this Act are hereby amended or modified accordingly.

SEC. 26. Separability Clause. - If any provision or part of this Act is held invalid
or unconstitutional, the remaining parts or provisions not affected shall remain in full
force and effect.

SEC. 27. Effectivity. - This Act shall take effect fifteen (15) days after its
Publication in the Official Gazette or in a newspaper of general circulation.

Approved,

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