A new Executive Order (E.O. No. 720) was signed by President Gloria Macapagal Arroyo re-confirming the Philippine Council for NGO Certification (PCNC) as government’s partner in accrediting NGOs as donee institutions for which charitable donations are tax-deductible.

A new provision of E.O. 720, in addition to the current practices of PCNC in accrediting donee institutions, is the representation of the Department of Social Welfare and Development (DSWD) in the PCNC Board, as well as of other relevant government agencies, such as the Commission on Higher Education (CHED), Department of Science and Technology (DOST), etc., depending on the type of the applicant NGO being evaluated. It was not clear for many NGOs, however, whether or not all applicant organizations should first register with DSWD before PCNC can process their application for certification. In the recent PCNC General Assembly last June 30, 2008, the certified NGOs urged PCNC to actively engage BIR as it prepares the implementing rules and regulations for this E.O. so as to clarify this concern. The E.O. also has a transitory provision clarifying that those already certified and registered with the BIR retain their donee institution status until the expiry date as indicated in their BIR certificate of registration.