THE MICROFINANCE NGO Regulatory Council (MNRC) said the eligibility requirements for accrediting microfinance nongovernment organizations (MF-NGO) in 2022 to 2025 will include a fund balance of P1 million at any given time and incorporation documents identifying the NGO as specifically organized to offer microfinance services.
According to MNRC Memorandum Circular No. 2 Series of 2021, MF-NGO applicants must be established as a nonstock, nonprofit corporation with minimum funds of at least P1 million upon application, and an operating track record of at least three years.
MF-NGOs must have corporate and trade names that include the word “microfinance.” Applicants may refer to the formats outlined in MNRC Memorandum Circular No. 1, Series of 2017.
Its Articles of Incorporation must state that the MF-NGO has “the primary purpose of implementing a microenterprise development strategy and providing microfinance programs, products and services for the poor.”
The applicant must also designate another NGO as the receiver of its net assets in the event of dissolution, or to the government for public use, or whatever determination might be arrived at by a court.
The articles must bar any member, officer, organizer, or any person, from being named a beneficiary of the MF-NGO’s property or income.
No trustee is allowed to receive compensation or remuneration, while administrative expenses may not exceed 30% of total expenses each year.
To be accredited, applicants must submit a copy of their operations or product manuals, specific program objectives “to reach the poor,” a functioning management information system, and at least 2,500 active microfinance clients. — Keren Concepcion G. Valmonte