ADVOCACIES AND LEGISLATION

One of APPEND’s established purposes is “to take steps, through personal or written appeals, public meetings, or other means, to propose enactment or changes in legislation, government policies, and other advocacy work. The aim is to enhance basic services and provide social and financial opportunities for small, cottage-scale, and micro-entrepreneurial sectors, as well as other poor and disadvantaged sectors of Filipino society.”

The Party-List System Act (Republic Act No. 7941) was enacted into law on March 3, 1995, with a mandate to promote proportional representation in the election of representatives to the House of Representatives through a party-list system.

In 2012, recognizing the importance of political representation, the APPEND Board made a decisive move to participate in the national electoral process by establishing the APPEND Party-list. This political initiative aimed to advocate for the interests of the micro-enterprise and microfinance sector in the Philippines.

“APPEND’s motivation to engage in government legislation is driven by the aspiration to create and amend laws that elevate the standard of living for all micro-entrepreneurs in the country. The objective is to safeguard their rights, fostering an environment for growth and prosperity. APPEND recognizes that poverty reduction is a collective effort, and as an alliance of microfinance Non-Government Organizations (MF NGOs), it is committed to empowering micro-entrepreneurs to evolve into small and medium-scale business owners. Over the past 40 years, these legitimate microfinance NGOs have played a crucial role in assisting the underprivileged to break free from the cycle of poverty through enterprise development. (Angel L. De Leon, Jr.” , APPEND Board Chairman)

The APPEND Party-List won a seat in the May 2013 election, and Congressman Atty. Pablo R. Nava III played a key role in reconciling various versions of the bill. In September 2015, the House of Representatives and the Senate ratified the bill, leading to the signing of Republic Act 10693 on November 3, 2015. This act strengthens Non-Government Organizations (NGOs) engaged in microfinance operations for the poor.

A crucial provision in this act mandates that duly registered and accredited Microfinance NGOs pay a two percent (2%) tax based on gross receipts from microfinance operations, replacing the previous requirement of 5% or 12% Value Added Tax and other national taxes.

The implementing rules and regulations (IRR) of the Microfinance NGOs Act were signed on August 16, 2016.

Since 2016, while APPEND is no longer part of the legislative body, it continues to advocate for the rights of the poor to lead better lives.

PRESENT (Poverty Reduction Through Social Enterprise) BILL:

APPEND, a member of the PRESENT Coalition, advocates for the passage of the PRESENT BILL, an act ordaining the promotion of social enterprises to alleviate poverty. The bill emphasizes creating policies that ensure social justice, prosperity, and independence while promoting full employment, a rising standard of living, and an improved quality of life for all.

The bill recognizes the role of social enterprises in poverty reduction and aims to empower marginalized sectors as primary stakeholders. It underscores the importance of providing technical and financial assistance, incentives, and services without infringing upon the autonomy of social enterprises.

The bill defines a Social Enterprise as an organization with a primarily social mission, including non-stock non-profit entities, cooperatives, sole proprietorships, partnerships, and corporations. Additionally, it introduces the concept of Social Enterprises with Marginalized Sectors as Primary Stakeholders (SEMPS), explicitly declaring poverty reduction as a principal objective and involving the poor in various capacities.