Presidential Decree No. 1564 or the Solicitation Permit Law, provides the Department of Social Welfare and Development exclusive authority to regulate the soliciting of donations or receiving of contributions for charitable or public welfare purposes. Department Order No. 40 series of 1994 has been issued to govern conduct of solicitation and fund raising activities at the regional level.
On the other hand, R.A. 7160 otherwise known as the Local Government Code of 1991 gives the city and municipal mayors authority to regulate the holding of activities for charitable and welfare purposes within their respective jurisdiction. Such activities may be in the form of benefit shows or dances, bingo socials for charity, raffle draws and similar activities.
Who may apply for a solicitation permit?
Any person or organization with legal authority to transact business in the country, desiring to solicit donations or receive contributions for charitable or public welfare purposes may apply for solicitation permit, except for the Sanguniang Barangay which is authorized under Section 391 of R.A. 7160 to conduct fund raising activities for barangay projects.
How can one apply?
Application for solicitation permit shall be filed (using the prescribed form) with the DSWD Field Office which has jurisdiction over the area where the solicitation activities shall be conducted. When the solicitation activities cover two or more regions, permits shall be secured from all the DSWD Field Offices concerned.
Upon filling of application, the applicant shall pay a filling fee of P300. In case application is disapproved, P200.00 shall be returned to the applicant together with the documents and notice of disapproval. The DSWD Field Director or his duly authorized representative issues the solicitation permit within five (5) working days after the filing. The permit shall not be transferable and shall only be valid during the specified period within the area covered by the application.
What documents are required?
- A certified true copy of the Articles of Incorporation and By-laws of the applicant, duly registered with the Securities and Exchange Commission (SEC) together with a copy of the resolution of its governing body or the Board of Directors.
- Sample receipts, ballots or tickets, consecutively numbered, which shall be used during the drive. Permission or authority containing comments and recommendation of the following:
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- Provincial Governor, City Mayor or Municipal Mayor in case of Provincial, City or Municipal Projects.
- Highest ranking official concerned of the Department of Education (DepEd) in the area where the solicitation or fund- raising campaign shall be conducted, in case of private or public school projects.
- Highest ranking priest or minister in the area where the solicitation or fund- raising campaign shall be conducted, in case of projects of church or religious sects.
DISAPPROVAL, REVOCATION AND SUSPENSION
Upon filing of proper motion by the party concerned stating meritorious grounds therefor, the Secretary of DSWD may reconsider the application for solicitation permit which has been disapproved or revoked. The Secretary’s decision is final and executory. A solicitation permit may be suspended upon the verified complaints by an office concerned. The DSWD Field Office shall conduct an investigation upon instruction of the Secretary.
REQUIREMENTS AFTER THE ISSUANCE OF PERMIT
- Change of date of fund drive and/or extension of the period of the drive may be made only upon approval by the DSWD Field Director concerned. A written request for such purpose is required. Persons or offices in charge of the solicitation of donations and voluntary contributions shall have no share in the proceeds to be derived.
- Funds collected during the conduct of the solicitation activities shall be deposited with any authorized banking institution or with the Municipal, City or Provincial Treasurer’s Office and shall be accounted for in the name of the association, institution or organization to whom the permit was issued.
- Expenditures for any project other than those stated in the application shall first be approved by the Field Director concerned, prior to implementation. In case of loss of the permit, the person to whom the permit was issued must submit immediately to the DSWD Field Office an affidavit of loss as basis for assessment in the issuance of new permit.
- The permit shall be surrendered to the Field Office concerned within a month after the expiry date of the permit together with a report of the names and addresses of the persons assisted from the fund campaign and an itemized statement of collection and disbursements certified by an independent Certified Public Accountant.
Any person found violating the Solicitation Permit Law ( PD 1564) and its Implementing Rules and Regulations stipulated in Department Order 40, series of 1994, shall, upon conviction:
suffer the penalty of imprisonment of not more than one (1) year , or a fine of not more than One Thousand Pesos (P1,000.00), or both, at the discretion of the Court; if offender is a corporation, organization or other juridical person, the penalty shall be imposed on the guilty officials, employee or member; if the guilty person is an alien, he/she shall be deported after serving sentence, without further proceedings.
