Philippine Council for NGO Certification Towards Corporate Social Governance Framework

Abstract

The Philippine Council for NGO Certification (PCNC) is a government-recognized NGO certification system that ensures professionalism, accountability, and transparency within the NGO and nonprofit sector in the Philippines. It provides a Seal of Good Housekeeping, helping identify good-standing NGOs for funding agencies and partners. The PCNC accreditation is a ladderized system requiring qualified NGOs to apply for a donee-institution status with the Bureau of Internal Revenue (BIR). It is a seal of legitimacy and good NGO housekeeping recognized by the government, the NGO sector, and the local and international donor community. The PCNC evaluation and accreditation process aims to improve the effectiveness of NGOs, making them more accountable, credible, and capable of providing services to those in need. It is an opportunity for NGOs to identify organizational strengths and areas for improvement and how these shortcomings could be mitigated for improved performance. The study focuses on the importance of PCNC Certification to NGOs towards corporate social governance framework. It addresses questions about how PCNC Certification has demonstrated social accountability, met established standards for good governance, attested compliance with existing regulatory requirements, and enhanced donor reputation. The study also explores donors' motivations to NGOs, such as transparency, credibility, certificate of donation, and acknowledgment from beneficiaries upon completion of projects. The study utilizes a quantitative/descriptive design, using a self-made questionnaire validated using one sample test statistic and Cronbach Alpha. The findings can help inform the development of a corporate social governance framework for NGOs and ODA agencies. The study aimed to determine the importance of PCNC Certification for NGOs in the corporate social governance framework. It focused on demonstrating social accountability, meeting good governance standards, ensuring compliance with regulatory requirements, and improving donor reputation. The findings revealed that the PCNC certification was highly significant, and donors were motivated to the same extent. To enhance donor reputation, the study recommended two key actions: 1) Know your audience and create unique fundraising opportunities, 2) Provide online donation tools, and 4) Ask for feedback. Knowing your audience helps create compelling campaigns tailored to specific demographics and preferences, allowing you to tailor your approach to different audiences. Creating unique fundraising opportunities allows donors to engage in their community in a fun and meaningful way. Providing online donation tools is essential for nonprofits, as they can receive large amounts of donations online. Your website should provide multiple opportunities for donations and outline potential giving types. Educational materials on using matching gift search tools may also be helpful. Lastly, asking for feedback is crucial for understanding donor preferences and satisfaction. Sending out a donor review survey can provide valuable insights into donor preferences and show them that you care about their needs. The survey should be direct and clear and take no longer than five minutes to complete. In conclusion, the study highlights the importance of PCNC Certification for NGOs in the corporate social governance framework and suggests several recommendations for improvement. Nonprofit organizations must offer incentives to retain donors and increase their participation. Incentives can include branded items, tiered membership programs, or public recognition. It is essential to know the needs of your organization and its goals before asking for donations. Hiring a fundraising consultant can provide an expert outside perspective, but ensuring their experience aligns with your organization's background is crucial. Saying thank you to donors is crucial for building a lasting relationship. Use personal salutations, note specific information from their donation, share the impact of their contribution, and invite them to continue their involvement. Choosing the best method for each donor will help maintain a healthy donor relationship. There are four main motivations for donors: cost and benefits, reputation, impact or influence, and altruism. Cost and benefits donors are motivated by solving problems or receiving benefits, while reputation donors are interested in visible philanthropy that showcases commitment and inspires others. Impact or influence donors are motivated by impacting their community, your organization, or broader societal issues. Altruism donors are selflessly concerned for others' well-being and seek gifts that support their self-perception as altruistic. A comprehensive understanding of your donors will give you insight into their mindset and motivations behind giving. Personalizing appeals with targeted donation requests will increase giving and strengthen your connection with donors. By addressing these factors, nonprofits can better understand and motivate their supporters to contribute to their cause.