According to research undertaken by the Centre for Civil Society Studies at Johns Hopkins University there were around a quarter of a million to half a million non-profit organisations (NPOs) in the country in 1997. More than half of this number were registered with national government agencies and were accredited by local government units.
Non-stock, non-profit corporations or associations, cooperatives, homeowners associations and labor unions form the basic legal forms of the non-profit/ NGO sector in the Philippines; these are generally characterised for mutual benefit, public benefit and non-commercial purposes.
Legal framework
The 1987 Philippine Constitution explicitly recognises the non-profit sector as the extension of “people’s power” and enshrines their right to participate on all levels of decision-making.
The following pieces of legislation provide the legal basis for the various types of NPOs/NGOs (note the term NGO is not usually used in the Philippines and the term NPO is more common) recognised in the Philippines:
The Corporation Code of the Philippines provides the legal basis for non-stock, non-profit corporations.
The Cooperative Law of the Philippines and the Cooperative Development Authority Act provide the legal basis for Cooperatives.
The Labor Code of the Philippines for Labor Unions and Federations, and Rural Workers Associations.
The Republic Act 8763 and the Housing Guarantee Act for Homeowners Associations.
Regulatory framework
Registration is not required per se for the existence of NGOs, but they must obtain a legal personality in order for them to be eligible for opening bank accounts, to enter into contracts, and to raise public funds. NGOs usually obtain their primary registration from any of the following state agencies:
The Securities and Exchange Commission (SEC) for non-stock corporations.
Cooperative Development Authority (CDA) for Cooperatives.
Department of Labor and Employment for Labour Unions and