How do we register a small charity in the Philippines and get permits to solicit donations online?

Hello:

Presuming this concern is within Philippine jurisdiction, it is very wise that your group is asking this question before collecting donations. In the Philippines, soliciting donations from the public without proper authority can expose organizers to criminal liability, particularly under Presidential Decree No. 1564, also known as the Solicitation Permit Law, and other regulations enforced by the Department of Social Welfare and Development, DSWD.

To operate legally and avoid accusations of illegal solicitation, your group normally needs to go through three main steps.

Firstly, your group must establish a legal entity. A group of volunteers cannot legally solicit funds from the public unless it is registered as an organization.

You may choose one of the following structures:

a.) Non Stock Non Profit Corporation, registered with the Securities and Exchange Commission, SEC. This is the most common structure for charities and foundations. The corporation must have trustees and articles of incorporation stating that it operates for charitable purposes.

b.) Foundation or NGO registration, also through the SEC as a non stock corporation. This structure is appropriate if the group intends to regularly raise funds and conduct charitable programs.

c.) Association registration, which may also be registered with the SEC if it will operate nationwide.

The SEC registration will require documents such as Articles of Incorporation, By Laws, list of trustees, and a statement of the charitable purpose.

Secondly, after SEC registration, the organization must obtain local and tax registrations. These usually include:

a.) Barangay Clearance and Mayor’s Permit, from the city where the organization will operate, for example Makati City.

b.) BIR registration, so the organization can obtain a Certificate of Registration and official receipts for donations.

c.) If the organization intends to issue tax deductible donation certificates, it must apply for BIR accreditation as a donee institution, which is a separate process.

Thirdly, and most important for your situation, the organization must secure a Solicitation Permit from the DSWD

Under DSWD rules, any organization that raises funds for charitable purposes from the public must obtain a Permit to Solicit. This applies even if the solicitation is done through:

a.) social media,

b.) e wallets such as GCash or Maya,

c.) crowdfunding platforms, or

d.) bank transfers.

The DSWD permit normally requires submission of the following:

a.) SEC registration documents of the organization,

b.) project proposal describing the charitable activity,

c.) list of officers and trustees,

d.) estimated amount of donations to be collected,

e.) bank account details where donations will be deposited,

f.) financial accountability report requirements.

The permit is typically valid only for a specific fundraising campaign and time period, not permanently.

Without this permit, the activity may be considered unauthorized solicitation, which can lead to penalties or complaints for fraud if donors later question the legitimacy of the fundraising activity.

From a practical standpoint, many legitimate charity groups structure their operations this way:

a.) Register a non stock non profit corporation with the SEC,

b.) Open a corporate bank account or e wallet under the organization’s name,

c.) Secure a DSWD permit to solicit donations, and

d.) Maintain transparent accounting and reporting of all donations received and disbursed.

This protects both the organization and the donors.

I am the owner of Recososa Law Firm, based in the Philippines, with offices in Luzon, Visayas and Mindanao. Our firm assists organizations with SEC registration, charity structuring, and DSWD solicitation permits, including compliance for online donation campaigns.

If you would like assistance setting up the charity properly, we can schedule an initial consultation via Google Meet, Zoom, or a physical meeting at our office.

You may also like and share our pages below, this will surely inspire us to do more of this here.

Sincerely,
ATTY. JOFRE B. RECOSOSA
Owner, Managing Partner
Recososa Law Firm