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Message from DR. PATRICIA B. LICUANAN, Chair, PCNC (2007-2008) The past year was not an ordinary one for PCNC.
Aside from our usual activities of certifying NGOs and our special projects such as training of evaluator's, learning events/guidebook on the basics of NGO governance, the NGO accountability project, and others, all summarized in the 2007 Annual Report, we faced a most unusual challenge.
Executive Order 671 "Designating appropriate government agencies to be the accrediting entities that will certify and accredit charitable organizations(s) as donee institutions relative to the deductibility of contributions or gifts received by them, in relation to section 34 of the tax reform act of 1997" was issued by President Gloria Macapagal-Arroyo on October 22, 2007 divesting the PCNC of its mandate to certify NGOs for donee institution status, a role it has performed effectively for close to 10 years.
E.O. 671 came as a "bolt from the blur", totally unexpected, as PCNC was never consulted on it not even informed after it was issued. The PCNC took immediate action and what followed was a series of appeals to the President and several meetings and discussions with her senior advisers and relevant agencies. Throughout the process, we tried to keep our members abreast of developments trough a forum and periodic e-mail updates, though regretfully, we had little to report since as of this writing, the issue has yet to be resolved and for most of this campaign to recall or revise E.O. 671, despite our best efforts, PCNC was pretty much left in the dark about what was going on.
I do not wish to go over what has been an inordinately long, drawn-out and frustrating process. O do believe, however, that it is important to emphasize that there were some positive outcomes of this E.O. 671 challenge. Even before its resolution, the E.O. 671 issue, has provided the opportunity to review the original reasons for the creation of PCNC i.e. to protect the revenues of government by ensuring that only legitimate and qualified NGOs will receive tax-deductibility donations and consequently that the tax incentives of full deductibility is not abused by donors. The E.O. 671 controversy has also called attention to PCNC's well-developed and effective examination / evaluation / and monitoring system, trusted by donors and internationally recognized. It has brought to light PCNC's impressive track record of 1049 NGOs evaluated and 878 certified. It has motivated reflection and testimony from NGOs themselves on the benefits of the PCNC process in strengthening their organizations. It has revealed the PCNC treasure trove of a hardworking, efficient, "lean and mean" office staff, hundred of highly qualified, well trained and dedicated volunteer evaluators and a distinguished and committed Board of Trustees---all passionate about PCNC's mission.
Indeed the E.O. 671 crisis has given PCNC the occasion to review its vision and mission and to be re-inspired by its mandate. Despite the hostility and harassment brought on by E.O. 671, PCNC has been given reason to count its many blessings. And the E.O. 671 crisis has provided the opportunity for government and civil society to reconsider the fragile partnership and to decide if in fact this is worth protecting, preserving and enriching.
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