Donations help social welfare groups provide food, shelter, education, health assistance, disaster relief, and other services to people in need. Article II, Section 23 of the 1987 Philippine Constitution supports this by encouraging non-governmental and community-based organizations that promote national welfare.
The law encourages giving through tax incentives. Under Section 34(H) of the National Internal Revenue Code, qualified donations to accredited donee institutions may be deducted from taxable income, subject to legal limits.
Also, Section 101(A) of the NIRC provides donor’s tax exemption for certain donations to qualified non-stock, non-profit organizations. These rules are implemented by Revenue Regulations No. 13-98. Subsequent issuances further clarified and supplemented these rules. Executive Order No. 720, Series of 2008 strengthened the accreditation system for donee institutions through government-private sector partnership. Revenue Memorandum Circular No. 64-2016 clarified the use of the Certificate of Donation or BIR Form No. 2322. Revenue Regulations No. 12-2018 implemented amendments under the TRAIN Law affecting donor’s tax rules. More recently, Revenue Memorandum Circular No. 10-2026 clarified the tax treatment, documentation requirements, and filing and payment rules for donor’s tax on donations consisting purely of cash.
Executive Order No. 117, Series of 2026, builds on these issuances by streamlining the accreditation process for donee institutions and designating the Department of Social Welfare and Development (DSWD) as the sole accrediting entity for Social Welfare and Development Agencies (SWDAs).
The Problem
The process of becoming an accredited donee institution has not always been simple. Some organizations, especially those involved in social welfare, may need to go through several steps with different government offices before they can be fully recognized. These agencies include the Department of Social Welfare and Development (DSWD) and the Bureau of Internal Revenue, (BIR), and other accrediting bodies.
For many organizations, this can be confusing and time-consuming. Instead of focusing fully on their programs and beneficiaries, they may have to spend more effort complying with overlapping requirements. Smaller organizations may find the process even harder because they may not have enough staff, funds, or legal assistance to complete all the needed paperwork.
Why Executive Order No. 117 Matters
Executive Order No. 117, series of 2026 simplifies the process by recognizing the Department of Social Welfare and Development as the sole accrediting entity or Social Welfare and Development Agencies.This means that when a social welfare agency is already registered and accredited by the DSWD, it should no longer have to go through unnecessary duplicate accreditation steps.
Before this, Executive Order No. 720, series of 2008 strengthened the government-private sector partnership in accrediting donee institutions and recognized the need to ensure that donations go to legitimate organizations. Executive Order No. 117 builds on this by reducing unnecessary duplication in the accreditation process for social welfare organizations.
Accountability Must Remain
The goal is not to remove accountability. Organizations that receive donations should still be transparent, responsible, and properly monitored. The government must still make sure that donations are used for legitimate charitable, social welfare, educational, religious, cultural, or public purposes. But the rules should be fair, clear, and not overly burdensome.
Conclusion
Executive Order No. 117, Series of 2026, is a practical reform that simplifies the accreditation process for Social Welfare and Development Agencies. Under the Order, the DSWD’s Certificate of Registration and Certificate of Accreditation shall be recognized by the BIR as sufficient basis to grant qualified donee institution status to SWDAs for purposes of Sections 34(H) and 101(A) of the NIRC.
As a result, donations made to qualified SWDAs may be claimed as deductions from taxable income, subject to the requirements and limitations under the Tax Code and applicable BIR rules. This gives donors greater confidence that their contributions are tax-recognized, while allowing SWDAs to focus more on their programs and beneficiaries.
Ultimately, this reform strengthens the link between tax policy and public service. It makes charitable giving more accessible, supports legitimate social welfare organizations, and helps ensure that aid reaches the people who need it most.
Article written by: Rhea T. Pelayo, CPA
