NGO’s

        Now that we know where and how most of our new-found economic gains are being wasted, let me present a novel idea that the new enlightened unstained legislators should seriously consider - to give prominence to the important role of legitimate non-profit non-government organizations in nation-building.

        It is now acknowledged that most of the country’s new-found impressive economic gains have been going to the elite, if not to the hidden bank accounts of the corrupt politicians. The rich are getting richer, the poor are getting poorer and the middle class migrating.

        I sincerely believe that this proposal can move the great mass of our suffering humanity forward.

        I was involved in the operation of a health care foundation for a couple of years, but it was a total exercise in futility. Because of the prevailing suspicion that foundations are being used as tax shields and for tax avoidance without doing service to the country or its avowed beneficiaries, the Finance Department of previous regimes disallowed NGOs to take on quasi for-profit operations, such as selling services and goods at discounted rates, even if the “profit” generated was earmarked to the support the foundation’s just causes. Also, non-profit organizations are legally mandated to use only up to 30% of all receipts and donations received on all administrative requirements, which, of course is pitifully unadequate to cover salaries, advertising, marketing, as well as all contracted services.

         It is important for legislators to review the charter of the Philippine Charity Sweepstakes Office (PCSO). Being government, PCSO has been subjected to political misuse, over-use and abuse. But this charter can serve as model on what legislators can creatively do to enable the shift of wealth being generated from the very profitable conglomerates towards the lowly non-profit sector.

         Our enlightened legislators should also consider built-in safeguards against opportunistic scam artists like those of Janet Napolis  – while at the same time serving as conduit for public funds to be used for legitimate social services.

         Currently NGOs’ watchdog is supposed to be the Philippine Council for NGO Certification (PCNC) – a private group of NGOs that signed a Memorandum of Agreement with the defunct Department of Finance. Previous to PCNC, the job was given to NEDA. It was given the authority to certify NGOs applying for donee institution status based on specific standards. The certification should then serve as a basis for the BIR to grant incentives to donor institutions. It was envisioned that this certification process would encourage local donations to NGOs so significant at this time when resources channeled to social development projects, including foreign donors, have become timid.  PCNC exists largely to pursue tax incentives for donors to NGOs.

        Evidently, refreshed legislators can create a law expanding the role of PCNC to allow the non-profit sector to absorb a bigger share of the new-found economic pie. As we now find out, the empowered NGO watchdog should be able to prevent the criminal diversion of scarce funds intended to uplift poverty by pseudo-fundraisers and other NGOs. This move should be able to do a better job at lifting the majority from poverty than the CCT dole-outs.

        Our legislators should find ways to allow NGOs to put the following five things together:

I do pray somebody is listening.