13 PH gov’t offices reap benefits from PCSO mandatory contributions

The PCSO mandatory contributions to charity funds of various government offices are enshrined in its Charter.

Acting as the principal government agency for “raising and providing for funds for health programs, medical assistance and services, and charities of national character,” wrote the Philippine Charity Sweepstakes Office (PCSO) Charter, the PCSO is mandated to allocate proceeds of sweepstakes or lottery draws to various charity funds.

Meanwhile, Section 6 of the Republic Act (RA) 1169, as amended (PCSO Charter), provides the allocation of revenue that shall be shared out to the prize fund (55%), charity fund (30%), and operating fund (15%).

The national lottery and sweepstakes office, which is under direct supervision of the Office of the President of the Philippines, is mandated by law to allocate funds out of its revenue to the following government offices:

  • Philippine Sports Commission
  • Nutrition Foundation of the Philippines
  • Philippine Red Cross
  • Girl Scouts of the Philippines
  • National Council on Disability Affairs
  • Quezon Institute
  • Boy Scouts of the Philippines
  • Cooperative Development Authority
  • Commission on Higher Education
  • Dangerous Drugs Board
  • PhilHealth
  • Local Government Units
  • Department of Finance

In accord with RA 6847, the Philippine Sports Commission shall receive 30% of the proceeds or the equivalent of six sweepstakes or lottery draws each year. Moreover, RA 4621, or “An Act to Authorize the Philippine Charity Sweepstakes Office to Hold Annually One Special Sweepstakes Race for the Benefit of the Nutrition Foundation of the Philippines” mandated the PCSO to conduct one special lottery horse race each year with all its proceeds after prizes and expenses donated to the Nutrition Foundation of the Philippines. This law was approved on June 19, 1965.

Meanwhile, the Philippine Red Cross shall receive an equivalent to two lottery draws each year by RA 3867 approved on June 12, 1964, or “An Act to Authorize the Philippine Charity Sweepstakes Office to Hold Annually a Lottery or Sweepstakes for the Expansion of the Philippine National Red Cross Blood Bank” and RA 10072 or the “Philippine Red Cross Act of 2009” approved on April 20, 2010.

Section 5 (d) of the RA 10072 mandates the PCSO to allocate at least one lottery draw each year. Besides the current blood program lotteries each year (RA 3867), it will also be supporting its disaster relief operations.

(d) Be allotted by the Philippine Charity Sweepstakes Office at least one (1) lottery draw yearly for the support of its disaster relief operations in addition to its existing lottery draws for the Blood Program. (Emphasis is mine.)

RA 10072, Section 5 (d)

Furthermore, the PCSO is also mandated to allocate its proceeds to the Girl Scouts of the Philippines by RA 620 approved on May 2, 1951, and to the Boy Scouts of the Philippines by Commonwealth Act (CA) 595 approved on Aug. 19, 1940. Both laws authorized the PCSO to conduct one special lottery horse race each year with all its proceeds after prizes and expenses donated to these national associations.

Also, the same privileges are enjoyed by the National Council on Disability Affairs by RA 4564 approved on June 19, 1965, and the Quezon Institute under RA 4703 approved on June 18, 1966.

However, for the Cooperative Development Authority (CDA) as a beneficiary for the PCSO mandatory contributions, the PCSO website indicated RA 11346, RA 11, and the PCSO BR 0151 s. 2021 as legal cornerstones authorizing them to allocate charity funds for CDA. Here, confusion steps in as RA 11346 is a law mandating to increase excise tax on tobacco products. By further research, it was found as a typographical error. An Annex A document titled, the “PCSO Revalidation Result of the 2022 Performance Scorecard” revealed that RA 11364 instead of RA 11346 is the legal basis for the PCSO to allocate charity funds for CDA as approved by the PCSO BR 0151, s. 2021.

13 PH gov't offices reap benefits from PCSO mandatory contributions
A typographical error of the CDA legal basis to receive charity fund allocations from the PCSO. It should be RA 11364. Accessed on Jan. 6, 2024, 11 p.m. (https://www.pcso.gov.ph/ProgramsAndServices/MandatoryContributions.aspx)

In addition to the PCSO mandatory contributions to selected government offices, the Commission on Higher Education by RA 7722 or the “Higher Education Act of 1994” approved on May 18, 1994, mandates the PCSO to allocate an equivalent of 1% of the monthly gross sales of lotto operation for the higher education development fund (Section 10 (5), RA 7722).

Another government office PCSO beneficiary is the Dangerous Drugs Board by RA 9165 or the “Comprehensive Dangerous Drugs Act of 2002” approved on Jan. 23, 2002.

RA 9165, Article X, Section 87, 2nd paragraph, provides:

All receipts derived from fines, fees, and other income authorized and imposed in this Act, including ten percent (10%) of all unclaimed and forfeited sweepstakes and lotto prizes but not less than twelve million pesos (P12,000,000.00) per year from the Philippine Charity Sweepstakes Office (PCSO), are hereby constituted as a special account in the general fund for the implementation of this Act…

Moreover, RA 11223, or the “Universal Health Care Act” approved on Feb. 20, 2019, mandates the PCSO to allocate 40% of the charity fund and net documentary stamp tax payments (Chapter IX, Section 37 (c), RA 1123).

Also, while the local government units (LGU) by EO 257/367-A for Lotto as approved by the BR 0178 s. 2020 shall receive funding from the PCSO, the Department of Finance by RA 7656 or the Dividends Law shall receive at least 50% of net income after corporate income tax from the PCSO.

Besides the PCSO mandatory contributions, the national lottery agency provides help and support to various programs and public services as its commitment to its corporate social responsibility. RQJ

PCSO mandatory contributions
File Photo: Philippine Charity Sweepstakes Office Building at Shaw Boulevard, Mandaluyong City (Credit: By Patrickroque01 – Taken using my own camera with model DSC-HX5V, CC BY-SA 4.0, https://en.wikipedia.org/w/index.php?curid=57680784)
Share

Leave a Reply