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WHEREAS it is incumbent upon the Board to assist or cooperate with the Ministry of Social Services and Development in preventing illicit fund raising campaigns or solicitations where such are undertaken in the guise of efforts to raise money for the establishment and maintenance of treatment and rehabilitation facilities for drug dependents or for activities purportedly for drug abuse prevention education and community information and other related purposes;

WHEREAS such illicit campaigns as well as any abuse in the use of funds solicited in the manner or for the purposes above-mentioned severely impair the national efforts to prevent and control drug abuse because it dampens the enthusiasm of the non-government sector to cooperate or give support either morally, physically, or financially to the overall endeavors against the problem;

WHEREAS, it is necessary to stop unauthorized use of the name of the Dangerous Drugs Board in the above referred to illicit activities;

NOW, THEREFORE, the Dangerous Drugs Board, pursuant to its powers under Section 36(a) of R.A. 6425, as amended, hereby prescribes the following procedures to be observed on regard to such funds solicitations:

SECTION 1.       Procedural Requirement — Any person (whether natural or juridical) partnership, corporation, [or] association desirous of undertaking a fund raising campaign to finance partially or in full, the establishment or maintenance of treatment and rehabilitation facilities and/or the undertaking of preventive education and community information and other activities against drug abuse, shall, before seeking a permit from the Ministry of Social Services and Development, (MSSD) first secure permission from the Dangerous Drugs Board. Toward this end, the applicant shall address a communication to the Dangerous Drugs Board stating therein: (1) the purpose or purposes of the fund raising campaign and (2) the percentage of the net proceeds which shall be spent for each of the areas of concern in the prevention and control of drug abuse such as treatment and rehabilitation; preventive education and community information; and basic research.

SECTION 2.       Prior Board Permission Pre-Requisite to MSSD Permit — The permission granted by the Board under Section 1 hereof shall be a pre-requisite for the issuance, by the MSSD, of a permit to undertake the fund raising activity.

SECTION 3.       Proceeds of Solicitation Solely for Purposes Indicated — The proceeds from fund raising activities falling within the purview of this Regulation shall be spent only for the purposes for which the same were solicited. Such purposes, however, shall be limited to providing funds for the establishment, operation, or maintenance of treatment and rehabilitation facilities for drug dependents; undertaking preventive education and communication information activities; financing or undertaking basic research relating to drug abuse; and the grant of donations to the Dangerous Drugs Board to assist in carrying out the provisions of Republic Act 6425, as amended.

SECTION 4.       Programs and Projects on Preventive Education and Community Information and Basic Research Subject to Prior Board Approval — In all cases, when preventive education and community information activities or basic research are to be undertaken, a program or project proposal shall be submitted to the Dangerous Drugs Board for prior approval.

SECTION 5.       Required Report Upon Completion of the Campaign — The applicant, after undertaking the fund raising activity herein referred to, shall within a period of thirty (30) days from the end of the campaign, submit to the Dangerous Drugs Board a Financial Statement covering the total amount therein realized and indicating (a) the gross and net receipts from the fund raising, and (b) the identification of expenses incurred therein.  Such Financial Statement shall be signed by the applicant and verified by an independent Certified Public Accountant.

SECTION 6.       Required Report after Undertaking Drug Abuse Prevention and Control Activities Financed from the Proceeds — Thereafter and within thirty (30) days after completion of the drug abuse prevention and control activities financed from the proceeds of the fund campaign, an accomplishment and financial report shall likewise be rendered to the Board indicating therein the amount and nature of expenses incurred in such activities.  The report shall be signed by the undertaking party and verified correct by an independent Certified Public Accountant. Where the proceeds realized from the solicitation campaign are given to treatment and rehabilitation centers, the donor shall inform the Board of the date of the donation the amount thereof and the purpose for which the funds were given.  The responsibility for rendering the required financial and accomplishment report under this Section shall then devolve upon the donee and such report shall be signed by the administrator of the facility and verified correct by an independent Certified Public Accountant.

SECTION 7.       Exemption from Coverage of this Regulation — This Regulation shall not cover fund raising campaigns or activities already authorized by law to be held.

SECTION 8.       Effectivity — This Regulation shall take effect after fifteen (15) days following the completion of its publication in the Official Gazette.

Adopted: 23 May 1984

(SGD.) J.C. AZURIN
(Minister of Health)
Chairman