A.
How to start an NGO
B. SEC Registration
C. PCNC Accreditation
D. Frequently ask Questions
A. HOW TO START AN NGO
Before you start the paperwork or recruit members, the first thing to do in
starting an NGO is this: ask yourself some basic questions. You need to have
a clear idea about what you really want to do. Try to answer these questions
in a single statement:
1.1 BASIC
STEP 1. What is the purpose of this NGO?
Why do you want to set up an NGO?
STEP 2. Who are your beneficiaries?
Think about who will benefit from your NGO. Will you cater to children, who
can’t afford to attend school, or women who are constantly battered by their
husbands or partners, or aspiring entrepreneurs who need financial guidance,
etc?
STEP 3. Do you have a planned Board of Directors?
The Board members must be of legal age, and the number of members must
not be less than 5, and not more than 15.
STEP 4. When and where do you plan to establish this NGO?
1.2 ORGANIZE
As soon as you have your Board of Directors ready and confirmed, organize a meeting
together.
STEP 5. Write your Vision statement.
How do you see this NGO after one year, three years, or eight years? What
are your beliefs or core values as a team?
STEP 6. Write your Mission statement.
How will you achieve your vision of the NGO? (The purpose of the NGO is
usually the organization’s standard mission statement.) Keep the statements
short and easy to understand.
Tip: Let each Director/member say each statement in his or her own words.
STEP 7. Decide on your goals as an NGO.
What do you want to accomplish in the next 3, 6, or 12 months? What
results do you intend to see in a specific period of time? These results need
to be specific, and measurable.
STEP 8. Choose a name.
The SEC Memorandum Circular No. 8-2006 says that the corporate name
must include the word Foundation. *
1.3 PREPARE YOUR DOCUMENTS
Every organization has its corporate documents. You’ll need these when you apply for
registration, certification, etc. Have them either typewritten or computer-printed. Make
copies of each document to keep in file.
STEP 9. Write the Articles of Incorporation.
The Articles of Incorporation are your corporate document that contains basic
information about your NGO. See this page to know more about how to write
one. (Note: Any corrections in the articles of incorporation should be duly
notarized before filing for SEC registration.)
STEP 10. Draft the By-Laws.
Bylaws contain the rules and the procedures for your meetings, elections of
officers, etc. See this page to know more about how to draft your own by-
laws.
STEP 11. Prepare a list of members, and another list of contributors
and/or donors.
Include the date of birth, specific address, and Tax Identification Number
(TIN) of each member.
(Note: Majority of the members must be residents of the Philippines.)
STEP 12. Prepare the Minutes of the Organizational Meeting.
The organizational meeting is usually the first formal meeting of the Board of
Directors. It is often during the organizational meeting where the articles of
incorporation and bylaws are approved and signed, and decisions are made
about electing or appointing officers.
(Note: The articles of incorporation and bylaws should be signed on the same
date.)
B. SEC REGISTRATION
An NGO must be registered first at the Securities and Exchange Commission (SEC),
and to be registered, you’ll need some more documents.
STEP 13. Prepare the following documents accordingly (according to
the official SEC website):
If you intend to register as a foundation, prepare a notarized certificate of
bank deposit not less than Php1,000,000 (one million)*, and a statement of
willingness to allow the SEC to conduct an audit. You are also expected to
include the word “foundation” in your official organization name.
For religious groups, refer to Sections 109-116 of the Corporation Code of
the Philippines, and include an affidavit of verification by the chief priest,
rabbi, minister, or presiding elder.
For federations, submit a certified list of member-associations.
For condominium associations, submit your Master Deed, and certification
that there is no other existing similar association in the condo project.
STEP 14. Secure a Name Verification Slip.
You can get one from the SEC website or from the SEC Name Verification
Unit.
STEP 15. Write an affidavit of an incorporator or Director undertaking
to change the corporate name.
If this wasn’t included in your Articles of Incorporation, have an affidavit
ready. This affidavit is necessary in case the SEC receives notice that another
corporation or person has acquired a prior right to the use of your NGO’s
name, or that name has been declared misleading or confusingly similar to a
registered name.
STEP 16. Submit 4 copies (with cover sheets) of each document for
SEC registration.
In summary, these documents are: (1) the Articles of Incorporation, (2) By-
Laws, (3) Name verification slip, (4) Affidavit, (5) List of members, (6) List of
donors/contributors, (7) Notarized bank deposit certification, and (8)
Statement of willingness to allow an audit.
Note: An NGO’s registration papers also includes an endorsement from a
government agency that corresponds to its purpose: charitable institutions
must obtain endorsement from the Department of Social Welfare and
Development (DSWD); educational institutions must be endorsed by the
Department of Education (DepEd), the Commission on Higher Education
(CHED), and/or the Technical Education Skills and Development Authority
(TESDA); and hospitals must get endorsement from the Department of
Health (DOH).
* Many have question the Php1M bank deposit requirement for foundations.
Apparently this is for security purposes, as foundations are expected to use
these funds to extend grants, etc.
C. PCNC ACCREDITATION
The Philippine Council for NGO Certification (PCNC) is the body that certifies/accredits
non-profit organizations that meet the established criteria for financial management and
accountability. An NGO that has operated for at least two years is usually eligible for
accreditation.
STEP 17. Fill up and submit the Letter of Intent form. (Download form)
Once the PCNC receives this, you will be asked to submit several forms.
STEP 18. Fill up the Application for Accreditation as a Donee
Institution.
STEP 19. Fill up the Survey Form.
STEP 20. Submit 4 folders, containing a copy of each form, and a
down payment of Php 1,000.
Send these to:
The Executive Director
Philippine Council for NGO Certification, Inc.
6th Floor, SCC Bldg., CFA-MA Compound
4427 Interior Old Sta. Mesa, 1016 Manila
Notes: You can download all necessary forms from the PCNC website.
PCNC accreditation currently costs Php10,000.
D. FREQUENTLY ASKED QUESTIONS: NGO’S
Q: What makes an organization an NGO?
You can actually do the paperwork on your own, but it is best to have them
checked by a lawyer and to seek legal advice before filing your registration.
In the Philippines, an NGO is often a non-stock, nonprofit organization and
meets several criteria:
1. Its founders or decision-making body do not involve people who work for
the government.
2. It has a self-regulatory mechanism/body to certify that the organization is
legitimate, accountable, and transparent – especially if it receives donations
or government funds.
3. Its aims are non-commercial, non-lucrative, of public interest, and for the
common good.
4. It has the structure of an organization, statutes, and a legal
form/registration.
Q: What is the difference between NGOs and NPOs?
Most NGOs in the Philippines are non-stock, nonprofit organizations, so most
people use the two terms interchangeably. Technically, however, not all
NGOs are NPOs, and not all NPOs are NGOs.
An NGO (nongovernmental organization) can actually either be nonprofit or
for-profit entities.
On the other hand, an NPO (nonprofit organization) is not a profit-making
entity. It can’t simply make a profit and distribute it among its members. An
NPO does not necessarily mean ‘charitable’ either.
Q: What are the types of NGOs?
According to the World Bank, there are two types of
NGOs/NPOs: Operational NGOs (often relief-oriented or development-
related, and community-based) and Advocacy NGOs (usually directed
towards raising awareness).
Q: What do NGOs do?
NGOs under Philippine Laws operate and organize for any of the following purposes:
1. Social welfare, such as human rights, sexual abuse victims, child
labor, prostitution, juvenile crimes, counseling (e.g. Red Cross,
Amnesty International)
2. Charity, such as orphanages, basic services for/distribution of food,
clothing, or medicine to the poor, housing, disaster relief services (e.g.
Visayan Forum Foundation)
3. Education, such as scholarships, journalism workshops, school
materials (e.g. Vibal Foundation, Tapulanga Foundation)
4. Environment, such as the restoration or conservation of nature,
animal rights (e.g. WWF, PETA)
5. Health, such as hygiene, vaccinations, medicine, waste disposal, drug
addiction recovery (e.g. Bukas Palad, KBCF Operation Paglingap
Foundation)
6. Scientific research
7. Religion (e.g. Universal Wisdom Foundation)
8. Culture, such as the arts, music, and sports/athletics (e.g. Bayanihan
Folk Arts Foundation, Inc.)
9. Economic, such as loans, skill training, financial consulting, job search
assistance (e.g. NWTF)
Q: How do NGOs/NPOs get funding?
NGOs/NPOs get funds through different methods. They:
– Accept voluntary private donations
– Sell handicrafts, artwork, goods, etc.
– Charge for services
– Receive other grants from local agencies
– Charge membership dues
– Organize fundraising events, like charity sports
– Are partially or fully funded by the government
NGOs that receive funds from the government retain their NGO status as
long as no government official is a member or a director.*
Q: Are “nonprofit” and “not-for-profit” the same?
Some groups make a distinction: not-for-profit refers to an activity – a
hobby, for example (i.e. fishing). Nonprofit refers to an organization
established for purposes other than profit-making.
Technically, however, there is no significant difference between the two
terms.
Q: Are NGOs/NPOs exempt from paying tax?
NGOs/NPOs have more tax exemption privileges than commercial businesses
and for-profit corporations, but these privileges are NOT absolute.
This tax exemption refers only to real property exemption, and not to other
types of tax. Income earned by a non-stock, nonprofit institution from the
sale or lease of its real property is subject to tax. Interest income from bank
deposits and yield from deposit substitutes are likewise subject to the final
withholding taxes.
Q: What skills are necessary in running an NGO?
Working in an NGO requires basic bookkeeping, events management, great
communication and leadership skills, an ability to empathize, and a genuine
desire to lend a hand and/or serve the NGO’s purpose.
Q: How many NGOs/NPOs are there in the Philippines?
There is an estimated 60,000 registered NGOs in the country.
Frequently Asked Questions: Starting an NGO
Q: How can I start my own NGO?
Click here for instructions on how to start an NGO.
Q: What is a Board of Directors?
The Board of Directors sets the policies and strategies for the NGO. It often includes
the founders of the organization. A Board of Directors may also be called the
Steering Committee, the Advisory Group, Board of Trustees, etc.
Q: What is the minimum number of Directors?
The number of Directors must not be less than 5, and not more than 15. All
Directors must be of legal age.
Q: Director, Trustee, Incorporator — are they all the same?
An incorporator is the NGO’s version of a film producer. The incorporator, or
founder, organizes the NGO, elects the first Board of Directors, and submits the
Articles of Incorporation.
Once the NGO is registered, the Board of Directors begins to manage/direct the
affairs of the organization. Incorporators usually join the Board of Directors.
The terms ‘Director’ and ‘Trustee’ are often interchanged; however, ‘Trustee’ gives
a more charitable impression.
Q: Why is it necessary to have a Board of Directors?
Directors provide guidance and much needed advice. The Board can develop plans,
handle policy issues, etc. Selecting Board members from your community can also
bring greater awareness. (e-myth). The Board is also said to be the conscience of
the organization.
Q: What is a VMG statement?
A VMG statement is the vision, mission, and goals of your NGO. It is the guiding
principle of the organization. Every decision, project, or even bylaw must serve the
purpose of the organization. If you need help to write your VMG statement, click
here.
Q: Is it required that I put the word ‘Foundation’ in my NGO name?
Not Necessarily
Q: What are Articles of Incorporation?
The Articles of Incorporation are the primary corporate document of your NGO.
They contain basic information, the list of incorporators and Directors, and other
policies. CLICK HERE to see a sample on how and what goes into the Articles of
Incorporation
Q: What are Bylaws?
The bylaws are your NGO’s operating manual or handbook. This includes all your
rules and procedures – about important decision-making, attendance, elections,
and appointment of officers, etc. CLICK HERE to see a sample on how and what
goes into the By-Laws.
Q: What are Minutes of the Meeting?
The Minutes of the Meeting refers to the record of a meeting. The first meeting with
the Board of Directors is often called the organizational meeting and the Minutes
must be recorded.
Frequently Asked Questions: SEC
Q: What is the SEC?
SEC is the Securities and Exchange Commission. It is responsible for the
registration of securities, evaluation of the financial condition and operations of the
organization for security issue. It is an agency under the Office of the President of
the Philippines.
Q: Are NGOs required to be registered at SEC?
Yes, an NGO must be registered at SEC.
Q: How can I register?
There are two ways: you can register at the SEC Verification Unit, located at the
SEC Building, EDSA, Greenhills, Mandaluyong City, right across the Philippine
Overseas Employment Administration (POEA) and the EDSA Shrine.
Or you can go online and use the SEC-iRegister, which is easier and more
convenient.
After paying the reservation fee, you get a name verification slip — this is one of
the main requirements.
Q: What do I need to register at SEC?
Name verification slip, articles of incorporation, bylaws, affidavit, list of members,
list of donors, a notarized certificate of bank deposit of no less than Php1,000,000,
and statement of willingness to allow the SEC to conduct an audit.
Q: How long does the SEC registration take?
Assuming that all required documents are submitted and all information therein
provided is in order, applications for registrations of new corporation/partnerships
with the SEC are processed within an approximate of 7 days from date of filing.
Q: How much does the SEC registration cost?
Filing fee and Legal Research Fee (LRF) are dependent on the Authorized Capital
stocks.
Please refer to the SEC Fees calculator for the calculation of the Registration Fee of
Stock Corporation
SEC Fees Calculator
SEC
SEC stands for the Security and Exchange Commission — the Philippines’ body that
handles the registration of all NGOs or nonprofit organizations in the country. The
SEC head office is located at SEC Building, EDSA, Greenhills, Mandaluyong City,
Metro Manila. Visit the official website at www.sec.gov.ph to learn
more. Telephone (632) 584 – 0923 or 584 – 1119 Email inquiry@sec.gov.ph
EXTENSION OFFICES
1. BAGUIO CITY Baguio Convention Center Government Center, Baguio City
Annie Tesoro agtesoro@sec.gov.ph (074) 442-8171 / 442-8170
2. LEGASPI CITY SEC Building, 2nd Floor Chiniel (Avon) Building, Rizal Street, Albay
District, Legaspi City
Marylou Duka-Castillo mdcastillo@sec.gov.ph (052) 480-8272
3. ILOILO CITY SEC Building, Gen. Hughes Street, Iloilo City
SEC Officer-in-Charge Russell I. Ildesa / riildesa@sec.gov.ph / (033) 337 2557 /
335-0025
4. CEBU CITY SEC Building, V. Rama Avenue, Guadalupe, Cebu City
SEC Director Lindeza R. Rogero-Gavino / lrgavino@sec.gov.ph / (032) 253-5337 /
253-6987
5. DAVAO CITY SEC Building, Corner Luisa Drive and University Avenue, Juna Subd.,
Matina, Davao City
Javey Paul Francisco jpdfrancisco@sec.gov.ph (082) 298-2170 / 298-1893
6. CAGAYAN DE ORO CITY SEC Building, Corner 14th and Tomasaco Del Lara St.,
Cagayan De Oro City
Renato Egypto rvegypto@sec.gov.ph (088) 857-4325 / 857-7225
7. ZAMBOANGA CITY SEC Building, San Jose Panigayan Street, Zamboanga City
Jesus Salvador Uro jsauro@sec.gov.ph (062) 991-7163 / 993-1437
8. TARLAC CITY 2nd Floor, Legislative Building, Tarlac City
Richard Laus rrlaus@sec.gov.ph 491-0140 / 491-0142
Frequently Asked Questions: PCNC
Q: What is PCNC?
The PCNC is the Philippine Council for NGO Certification. It certifies NGOs/NPOs
“that meet the established criteria for financial management and
accountability.” The PCNC was established by several NGO networks including the
Caucus of Development NGO Networks (CODE-NGO), Association of Foundations
(AF), and the National Council for Social Development Foundation (NCSD).
Most NGOs that are at least two years old can apply for accreditation.
Q: Are NGOs required to be accredited / certified?
An NGO with SEC registration can still operate without being accredited. However,
while some organizations do not need to apply for accreditation (e.g. sports clubs,
transport drivers’ organizations, vendors’ associations), other NGOs are highly
recommended to be accredited.
Q: How can I apply for accreditation?
The accreditation process goes like this:
1. The organization inquires with PCNC for the requirements.
2. PCNC sends the following forms to be filled-up by the applicant NGO: (a) letter of
intent (1 copy) and (b) an application for Accreditation for Donee Institution Status
and checklist of requirements (1 copy).
3. The applicant NGO submits the Letter of Intent and Application Form together
with their latest Audited Financial Statement and the initial payment of Php
1,000.00.
4. PCNC sends applicant NGO a survey form to be accomplished in four (4) copies.
5. The applicant NGO submits the survey form with complete attachments, and the
balance of the application fee according to the socialized fee scheme based on Total
Assets, as follows:
A. Organizations with total assets of Php5M and below – Php 10,000
B. Organizations with total assets from Php5M – Php15M – Php 15,000
C. Organizations with total assets from Php15M – Php50M – Php 15,000
D. Organizations with total assets above Php50M – Php 15,000
6. The secretariat forms the evaluation team line-up.
7. The evaluators confirm their availability; PCNC secretariat makes arrangements
for the visit.
8. The evaluation team conducts the evaluation visit.
9. The PCNC Board deliberates on the evaluation team’s recommendation.
10. NGO is then notified on the PCNC Board’s decision.
11. For certified NGO, the PCNC Secretariat submits certification results to the BIR.
12. The BIR issues Certificate of Donee Institution Status to NGO.
*Applicants are given 1 (one) year to complete the application process (submission
of all required documents & payment of Balance of application fee); otherwise, their
down payment of 1,000.00 will be forfeited.
Q: What do I need to be accredited?
To apply for accreditation, your organization has to be:
1. A non-stock, non-profit domestic corporation*, or association, organized under
Philippine laws
2. Operated exclusively for religious, scientific, cultural, educational, or social
welfare purposes, youth and sports development, or for the rehabilitation of
veterans
3. Formally operating for at least one (1) year
*Definition of a “non-stock, non-profit corporation or organization” is based on the
BIR Revenue Regulations No. 13-98.
Q: Is the PCNC accreditation a one-time certification only? Does it expire?
Yes, the certification expires after a certain period. An NGO can obtain a
certification that lasts from one (1), three (3), or five (5) years — depending on its
years of existence and ratings from the evaluation. When an organization’s
certification expires, it needs to apply for renewal.
PCNC Directory
The PCNC (Philippine Council for NGO Certification) is the body that accredits and
certifies registered NGOs in the Philippines.
Mailing Address
6th Floor, SCC Building, CFA-MA Compound
4427 Interior Old Sta. Mesa St.
Sta. Mesa, Manila
Telephone Numbers
+63 (02) 782-1568
+63 (02) 715-9594+63
(02) 715-2756
Email address
pcnc@pldtdsl.net
Frequently Asked Questions: Tax Exemption
Q: What is tax exemption?
Tax exemption is a reduction or elimination of the taxes normally imposed on
individuals and organizations by the government.
Q: Are NGOs/NPOs exempt from paying tax?
Tax exemption, according to Section 30 of the Tax Code, can be granted to an
organization that is non-stock and nonprofit, and operated or organized exclusively
for charitable purposes. It is essential to remember, however, that this tax
exemption is not absolute.
However, NGOs, whether engaged or not in microfinance activities, are not exempt
with respect to their withholding tax liabilities. They are required to file withholding
tax returns and remit withholding taxes on all income payments that are subject to
withholding.
Q: What is Donor’s Tax (aka Gift Tax)?
Donor’s Tax is a tax imposed on the privilege of transmitting property by and from
a living person to another by way of donation.
Q: What is a ‘donee institution’?
An organization with a donee institution status is granted the right to receive tax-
deductible and tax-exempt donations under the 1995 Tax Code. The PCNC can
certify NGOs for this status, which is subject to the final approval of the BIR.
Donors to a donee institution are entitled to donor’s tax (30% of donation plus 12%
value added tax) and 100% tax deductibility of donations from gross income of
Donor Company.
Q: How can I have my NGO accredited as a donee institution?
The accreditation of NGOs/NPOs to donee institutions can be done by the following
agencies: Department of Social Welfare and Development, for charitable/social
welfare organizations, and foundations; Department of Science and Technology, for
organizations engaged in research and other scientific activities; the Philippine
Sports Commission for organizations and foundations engaged in sports
development; National Council for Culture and Arts, for organizations engaged in
cultural activities; and the Commission on Higher Education, for organizations
engaged in educational activities.
Previously, the PCNC was the duly designated accrediting entity for donee
institutions. However, it was eventually deemed that it may amount to an undue
delegation of power, since the PCNC is a private body. With the issuance of
Executive Order No. 671 (October 2007), this function has been transferred to the
several agencies listed above.
Q: What is the basis of the BIR to grant an NGO the donee institution
status?
The NGO must be certified by the PCNC (Philippine Council for NGO Certification).
Q: Are there tax benefits granted to taxpayers who donate to accredited
institutions?
Yes! Donors enjoy certain tax privileges like deductibility of donations and
exemption from donor’s tax.
Full deductibility of donations is allowed only for donations to accredited NGOs. For
donations to non-accredited NGOs, the deduction is allowed only up to 10% for an
individual donor and 5% for a corporate donor, of the donor’s business income.
Donations to accredited NGOs/NPOs shall be exempt from donor’s tax as long as
not more than 30% of the said donations for the taxable year shall be used by such
NGO for administration purposes.
Q: Do NGOs receive tax incentives?
Yes, Philippine NGOs receive tax incentives under the law, such as tax exemption
and donee institution status, which allows local donations to be deducted from the
donors’ taxable income and exempted from donors’ tax.
Q: Can the donations be deducted in full?
Yes, donations, contributions or gifts that are made within the taxable year to
accredited NGOs can be fully claimed as deduction. However, the deduction cannot
exceed 10% of the income of an individual donor, and 5% for a corporate donor.
Frequently Asked Questions: Current NGOs
Q: What are the yearly reporting requirements of an NGO?
(1) Annual report, (2) GIS/General Information Sheet, and (3) Financial statement;
BIR, quarterly income statement, monthly withholding taxes for rental, yearly
withholding taxes summary for rental, yearly registration, financial statement; city
hall, yearly registration.
Q: What yearly reports should an NGO file with the SEC?
a. General Information Sheet (GIS) as of Date of Annual Meeting (6 copies), within
30 days from date of annual meeting as specified in the bylaws
b. Audited Financial Statement (AFS) duly stamped “Received” by the BIR, within
120 days from end of the fiscal year as specified in the bylaws (5 copies)
c. Issuer of securities registered under the Revised Securities Act (RSA) or SRC,
within 105 days after the end of the fiscal year (5 copies)
d. Issuer of securities not registered under the RSA or SRC, within 120 days (5)
e. Securities Brokers, within 110 days after the end of the fiscal year as specified
(5)
Q: What is an annual report?
An annual report is an in-depth outline of the activities and/or accomplishments
made by the organization in the previous year. The report includes audited annual
accounts and gives an overview of the NGO’s progress.
Recent annual reports tend to be more concise and show information through brief
text and graphics/infographics. Some annual reports are printed as brochures,
booklets, etc. (See samples here.)
Q: Can an NGO form a for-profit business?
The idea may be unusual for some NGOs that are firmly nonprofit, but yes, there
are a few cases of NGOs with a development program that turn into an
independent, for-profit enterprise.
Q: I only have volunteer workers for now and I’m thinking of giving them
compensation for their hard work. Is there a borderline between a daily
compensation and a salary?
“Hiring staff/employees might require your organization to register with SSS (Social
Security System), PhilHealth, and Pag-ibig Fund to ensure that your staff receives
the benefits the government mandates to employers. Update also your BIR
registration for including additional filing of BIR return – withholding taxes on
compensation income. Employers with more than 5 employees are also encouraged
to register with DOLE (Department of Labor and Employment).
Q: Can an NGO own/partner with a business?
Yes, although most NGOs that join forces with businesses are usually experienced
organizations. Examples include Greenpeace and McDonald’s, CARE and Unilever.
“Some NGOs do not approve of the idea of NGOs working with commercial
corporations, while some are open to partnering with them to create shared
value. Partnerships between an NGO and a business can be risky for both; but if
everything goes well, the risks can be worth it. For businesses, for example,
working with an NGO can bring credibility and reputational gains.”
An NGO and a business can also form a conventional project alliance – a business
donates to fund a project run by an NGO, for example. These are often more short-
term than true partnerships.
Q: How can an NGO change its bylaws (e.g. number of Directors)?
There is no fixed way to amend or revise bylaws. The NGO can decide for itself how
changes can be made by stating it down formally in the original version of the
bylaws.
According to Robert’s Rules for Amending Bylaws, you should at least require a
two-thirds vote and previous notice to make any changes in your bylaws. Each
member must be given a chance to voice his/her opinion.
Who will revise and review the bylaws
Draft the new version of bylaws.
Give notice to those authorized to vote on the amendments
Decide how the voting will be done: show of hands, ballots, etc.
Propose the revisions and vote
Direct the secretary to fully record the sequence of events in the meeting minutes,
including the text of the original bylaw, the proposed version, who proposed the
new version, the final version, and who seconded/motioned for the vote, and the
result of the vote.
Q: How can I close/shut down my NGO?
Shutting down / Dissolution of an NGO can either be Voluntary (induced by the
organization) and Involuntary (revoking of an organization’s certificate by the
Board).
Voluntary dissolution; upon application for registration, NGOs are required under
the law to submit a prescribed form accompanied by an authenticated constitution
by the subscribers of the organization. Every constitution must have a dissolution
clause. Thus the manner in which an organization is voluntarily dissolved is laid out
in its constitution. It is general practice however, for voluntary dissolution to be
carried out by a resolution at the annual general meeting through a ¾ majority
vote by the members of the organization. The members must be given written
notice 30 days in advance specifying the proposal to dissolve.
Involuntary Dissolution- would be possible if there are compelling public interest
in so doing, the NGO may have gone bankrupt, has not been active for an extensive
period over several years , there should be at least two failures to file annual
reports on their accounts, and/or has engaged in serious misconduct in the sense of
willfully engaging in an activities that are inconsistent with the objectives for which
an NGO can be founded.
