The Biochar Project
2011
PHILIPPINE BIOCHAR ASSOCIATION
THE ASSOCIATION
The Philippine Biochar Association (PBiA) was formed specifically to promote the production
and use of biochar to help mitigate the greenhouse effect caused by burning fossils fuels and
farming.
Its first project is focused on producing biochar from rice husks and incorporating it into rice
farmlands. Not only will this help mitigate greenhouse effect, this will also bring back fertility to
local rice farmlands, contribute to increasing local food production and hopefully improve the
quality of life in the areas where the project is and will be implemented. This manual is
prepared for this project.
The Association was registered with the Securities and Exchange Commission on April 8, 2011
and the project was formally launched on April 19, 2011 in Botolan, Zambales, where the first
PBiA local network was formed.
The Association’s incorporators are:
Philip G. Camara
Ma. Rosario R. Camara
Antonio De Castro
Elizabeth De Castro
Cynthia B. Pasco
The Association is spearheaded by long –time environmentalists.
BIOCHAR
Biochar is charcoal created by pyrolysis (burning with minimal oxygen) of biomass (e.g. agri and
forest wastes) and is the most effective way to remove CO2 from the atmosphere. Biochar is an
almost pure carbon, at least 50% of the CO2 a plant or tree absorbed from the atmosphere
during its lifetime is trapped through the charring process. For every 1 kilo of pure carbon
produced, 3.67 kilos of carbon dioxide is taken out from the atmosphere.
When biochar is added to the soil, it is known to stay in the soil for thousands of years. Biochar
or terra preta was developed thousands of years ago by the native Americans in the Amazon
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Philippine Biochar Association
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2011
region. They are believed to have used biochar to enhance soil productivity and made it by
smoldering agricultural waste. They are successful in creating vast and fertile farmlands that
are still some of the richest soil on Earth today.
The benefits of biochar as a soil amendment are:
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boosts soil fertility
prevents soil erosion
improves soil quality by raising soil pH
traps moisture, attracting more beneficial fungi and microbes
improves cation (positive ion) exchange capacity
helps the soil hold nutrient
improves water quality by retaining agrochemicals and metals
Moreover, biochar is a more stable nutrient source than compost and manure. Biochar,
therefore, as a soil amendment can increase crop yields, reduce the need for chemical
fertilizers, and minimize the adverse environmental effects of agrochemicals in the
environment.
THE PBiA BIOCHAR PROJECT
For its first project, PBiA designed a Philippine Biochar Project that include a Carbon Offset
Validation and Certification Program and a Carbon Negative Sticker Program
The Carbon Offset Validation and Certification Program
To introduce carbon sequestration in the Philippines using biochar, to help mitigate greenhouse
effect and help improve rice farmland fertility, the Philippine Biochar Association (PBiA) is
partnering with local government units (LGUs), local non-government organizations (NGOs),
and people’s organizations (POs) in Philippine towns and municipalities where there are
significant areas of rice farmland. Together, these partners shall form the PBiA local network
and act as validators, biochar producers and incorporators to farmlands and certifiers in the
program implementation.
PBiA’S first local network was established in Zambales in the town of Botolan compose of the
Municipality of Botolan, Zambales Local Government, St. Augustine (Sambali )Fund, Inc. (SASFI),
and Bucao Farmer Irrigators Association. PBiA is in the process of setting up similar networks in
different provinces all over the country, with negotiations ongoing with the towns of Palauig
and San Narciso in Zambales, and the town of ________ in Samar.
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Each PBiA network actually produces the biochar, incorporates it in the soil, validates and
verifies the quantity and the location of the farmland and reports to the PBiA every 1.1 ton or
1,100 kilos of biochar produced and incorporated into soil. For every 1.1 ton of biochar, the
local network shall receive P3,500 from PBiA and shall be shared by the parties. PBiA’s
suggested sharing structure is: PO- 70%; NGO – 20%; LGU – 10%
PBiA hopes to motivate the local networks, especially the farmers, to produce the biochar in
the long term through this compensation system and together with its local networks create an
impact on greenhouse gas mitigation in the Philippines, improve food production and
contribute in the improvement of the quality of life of our rice farmers.
As an overview, the program shall run this way:
Pre-operating
1.)
PBiA identifies and partners with a local NGO in a pre-identified town where there
are significant areas of tilled rice farmlands and PO/rice farmers’ organizations.
Once it finds an NGO that meets its criteria, PBiA enters into a Memorandum of
Agreement with the NGO that specifies each party’s roles and responsibilities.
2.)
The NGO forms the local network in its town by first convincing the LGU through
the town Mayor and Municipal Agricultural Officer to support the Program
3.)
The NGO identifies, convince and partners with PO/farmers’ organization involved
in rice farming. In the absence of a rice farmers’ organization, the NGO may
initiate/facilitate/organize the formation of such an organization.
4.)
The NGO enters into a tripartite Memorandum of Agreement with the LGU and the
PO/Farmers’ Organization
5.)
The NGO submits a copy of the signed and notarized tripartite Memorandum of
Agreement with the PBiA for accreditation.
6.)
The Local Network sponsors the training and orientation of the PO for biochar
production by PBiA
7.)
PBiA sends trainors to the Local Network
8.)
Trainors report to PBiA Local Networks completion of the training and PBiA sends
the NGO, the LGU and the PO copies of the program operations manual and three
(3) Biochar Logbooks, the Accreditation Letter and Certificate
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Partners’ Roles are: LGU – validators and certifier; PO – Biochar producer and
incorporator of the same into farmlands, and certifier; NGO – validator, certifier
and overall program coordinator. Each party shall assign an officer who shall be
the authorized representative and signatory for the biochar validation and
certification program
Implementation
1.)
The PO produces the biochar and incorporates the same into rice farmlands in
increments of 1.1 tons. 1 hectare of rice farmland can take as much as 50 tons of
biochar, depending on soil type.
2.)
PO schedules actual biochar incorporation into farmlands with the NGO, who also
informs the LGU
3.)
In the presence of the authorized representatives of the NGO and LGU, the PO
incorporates the biochar into farmlands
4.)
The NGO, PO and LGU validate the incorporation by signing the logbooks.
5.)
The NGO reports the validated incorporation of biochar into farmlands to PBiA
6.)
PBiA authorizes the issuance of 1.1 tons of biochar Master Certificates and assigns
corresponding serial numbers. The NGO handles the issuance and all parties sign
the Master Certificates
7.)
The NGO records the issuance of Master Certificates on the 3 Logbooks to prevent
double issuances against validated biochar incorporations.
8.)
The NGO forwards the signed Master Certificates to PBiA
9.)
The parties shall keep the Logbooks updated at all times
Monitoring and Audit
PBiA as the national accreditation and monitoring body shall schedule quarterly physical
audits of all PBiA local networks and will conduct laboratory tests on soil samplings from
partner farmers’ farms to determine the biochar content of the farm soils where biochar
was certified to have been incorporated.
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The Carbon Negative Sticker Program
To make the project sustainable, PBiA shall raise funds for the Biochar Project through the
Carbon Negative Sticker Program. This program shall offer concerned individuals and
companies a way to sequester the carbon produced by their vehicles and operations. Engine
combustion of fuel produces carbon dioxide that ends up trapping solar heat at the rate of 1
kilometer of travel equivalent to 100 grams of carbon gas generation.
Using the 3.67 factor for carbon to CO2 conversion, PBiA can issue 4 stickers for every Master
Certificate issued by the Local Networks each representing 1 ton of captured CO2 from the
atmosphere.
PBiA shall secure a donation of P1,500.00 for every Carbon Negative Sticker. This donation
amount is enough to cover the production of biochar, the plowing into farmland, the
monitoring, validation and registration system, the issuance of the Carbon Negative sticker.
The donation for every sticker shall be distributed as follows: a) 58% to the local network, b)
18% to be retained by PBiA to produce and issue the stickers, promote Biochar and greenhouse
mitigation awareness as well as to manage the nationwide program c) 24% to be allocated to
finance donation sourcing activities, bulk discounts etc.
PBiA stickers have security markers and only PBiA is the authorized donation solicitor against
the stickers. Serial numbers of stickers issued and corresponding sub-certificates and master
certificates shall be posted in the official PBiA website. Any person will be able to check the
website to check if his sticker has a corresponding certificate to ensure its genuineness.
The program shall be implemented as follows:
1.)
Upon receipt of Master Certificates from the local networks, PBiA issues 4 subcertificates and shall issue a sticker per sub-certificate.
2.)
The issuance of the sub-certificates shall be communicated to the NGO for its
records
3.)
PBiA shall raise donations for the project by offering each Carbon Negative Sticker
as a carbon offset for vehicle owners and companies at P1,500 to offset 1 ton of
CO2
4.)
For every Sticker released to a donor, PBiA shall also release the corresponding
sub-certificate signed by its authorized signatory and shall issue an official receipt
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Philippine Biochar Association
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2011
5.)
PBiA shall remit collected funds to the NGO. Remittance shall be based on
donations raised from every 4 stickers (equivalent to 1 Master Certificate –
P3,500). PBiA shall communicate to all the parties of the network that a
remittance has been made.
6.)
The NGO shall remit the share of the PO and LGU following the sharing structure
specified in their tripartite MOA
PBiA ORGANIZATIONAL STRUCTURE
PBiA Members
Board Members/
Chairman
President
Network
Development
Accreditation,
Training and
Monitoring
Project
Funding
Finance
Admin
The PBiA members are composed of partner NGOs who will have 9 seats in the Board while 6 will come
from PBiA National Level leaders.
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OPERATING MANUAL
PBIA
Network Development
1.)
2.)
3.)
4.)
5.)
6.)
7.)
8.)
Identifies towns and municipalities with significant areas of tilled rice farmlands.
Identifies local NGOs in identified target towns and municipalities and secures contact
persons
Prepares a network building plan specifying primary areas to develop, timetable and
biochar production projection
Sends proposal letters with brochures and FAQs (Draft Letter attached as Annex A)
Sets up meetings and presentations
Executes Memorandum of Agreement (Draft attached as Annex B)
Guides/assists NGO in forming the local network until the tripartite Memorandum of
Agreement (Draft attached as Annex C)
Forwards executed Agreements (signed and notarized) to Accreditation and Monitoring
Criteria for NGO
1. The network NGO must be registered with the Securities and Exchange Commission
(SEC) and an accredited local or national NGO involved in the town or province and with
a presence in the town or province
2. Historically, the NGO must have projects that are environmentally sound
3. The NGO must have a local checking account
4. The NGO must be acceptable to both the Farmers' PO and the LGU
5. The NGO must have a local representative authorized to sign checks and contracts
Criteria for PO:
1. The PO must be directly involved farmers or farmers' groups, and must be organized
and SEC registered
2. The PO must be in good standing with the LGU and with the NGO concerned
3. The PO must be generally non-controversial in the town community
4. The PO must be open to adopting new agricultural practices and the necessary training
needed
5. The PO must have a local savings or current bank account
Criteria for LGU:
1. The LGU must be open to new and innovative ideas and programs, particularly with
regards to farmers' livelihood and the environment;
2. The LGU must be dependable and non-controversial in the community;
3. The LGU must hold sincere environmental and people-oriented principles and beliefs;
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4. The LGU must be willing to assign a representative to the biochar project;
5. The LGU must be in agreement and have good relations with the NGO and PO involved
in the network;
Accreditation, Training and Monitoring
Accreditation
1.)
2.)
3.)
4.)
5.)
6.)
Upon receipt of executed Agreements, coordinates with Local Network for orientation
and training on the biochar program
Conducts orientation through accredited trainors.
Trainors give copies of the training manual on biochar production, operations manual and
the 3 validation and certification logbooks to the local network
Trainors certify that the local network has completed the orientation and training
Issues an accreditation letter and certificate to the local network (draft letter attached as
Annex D, local network accreditation certificate attached as Annex E)
Forwards copy of executed agreements and accreditation letter/certificate to
Finance/Accounting
Training
1.)
2.)
3.)
4.)
5.)
Orients, trains and accredits trainors
Prepares and designs training materials (Powerpoint presentations, FAQs ; attached as
Annex F)
Sends trainors to local networks
Conducts continuous research for materials on biochar production, development and use
Monitors the impact of the biochar program in terms of CO2 level/air content in the areas
where the program is implemented, rice yield improvement, quality of life of the farmers
Monitoring
1.)
2.)
3.)
4.)
5.)
6.)
Coordinates with partner NGO on project status
Receives reports from the partner NGO on validated Biochar production
Authorizes NGO partner to issue master certificates against validated incorporated
biochar into farmlands and communicates to the NGO corresponding master certificate
serial numbers to be used
Receives the signed master certificates and enters data (serial number, local network,
farmer’s name, date of incorporation) into the monitoring excel file
Issues sub-certificates and communicates these to the NGO for its records. Enters the
data in the monitoring excel file (Sub-certificate form attached as Annex G)
Forwards issued sub-certificates to Project Funding as well as the monitoring excel file
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Project Funding
Stickers Issuance
1.)
2.)
3.)
Upon receipt of the sub-certificates, corresponding stickers are issued and opened for
donation (Sample Carbon Negative Sticker, attached as Annex H)
Enters issuance data into the monitoring excel file adding a field for donor’s name
Stickers and sub-certificates shall be kept by a custodian and releases shall be signed by
the Project Funding Director and the Finance Director. (Release form, attached as
Annex I)
Donor’s Sourcing
The P1,500 donation amount per Carbon Negative Sticker representing 1-ton of captured CO2
shall be distributed as follows: P875 – Local Network; P275 – PBiA; P350 – Donor Solicitor
PBiA shall accredit donation solicitors who may receive all or a portion of the allocated P350
Donor Solicitor’s share. Accredited Solicitors shall sign an Accreditation Agreement with PBiA
and shall execute a Deed of Undertaking to remit all donations collected (Accreditation
Agreement attached as Annex J, Deed of Undertaking attached as Annex K). Donor Solicitors
shall be accredited and monitored by PBiA’s Admin.
Donor Solicitors Criteria
1.)
2.)
3.)
4.)
Donor Solicitors can be an individual, organization or company
Of good standing
Advocates of environmental protection
If organization or company, SEC registered and with updated barangay and business
permits
Individual Donor Solicitors shall be required to fill out an application form and shall be
evaluated and shall be required to submit their bio data and two character references
Organizations/Companies shall be required to submit their SEC registration, Audited FS and GIS
Individual Donors
1.)
2.)
The full donation amount of P1,500 shall prevail
PBiA requests the donor to make the payment in cash or check or direct deposit into its
bank account with the donor sending by fax the deposit slip. Checks shall be made
payable to Philippine Biochar Association. All cash and check payments shall be
forwarded to Finance/Accounting
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The Biochar Project
3.)
4.)
5.)
2011
Upon receipt of payment, PBiA releases to the donor the Carbon Negative Sticker kit
including the sub-certificate (Sample Sticker kit attached as Annex L)
Issues an Official Receipt to the donor and records the purchase in the monitoring excel
file including the donor solicitor’s name (Sample Official Receipt attached as Annex M)
For check payment, provisional receipt shall be issued upon receipt of the check and an
official receipt upon clearing of the check (Sample Provisional Receipt attached as Annex
N)
Institutional Solicitations
Companies
Large Companies:
1.)
2.)
3.)
Secure 3rd party certification,
Donor Solicitor’s share shall serve as a discount
Steps for donation remittance, same process as above
Small & Medium Companies:
1.)
2.)
Solicitation may be directly made by PBiA or through Donor Solicitors
Donor Solicitor’s share is partial, limited to a maximum of P250 to give an
incentive to the person who solicits the company
Steps for donation remittance, same as above
3.)
( Schools will be considered as Small & Medium Companies)
Pre-selling
1.)
2.)
3.)
4.)
In the event donation solicitation overtake Biochar soil incorporation, PBiA and
its solicitors can “pre-sell” the Stickers
Donation remittance process will be same as above but delivery/release of
Stickers will include a letter saying that the Sticker(s) purchased will become
effective on or before a certain date.
By the date stated in the letter, the Sub-Certificates will be sent to the buyer.
These shall be recorded in the monitoring excel file with delivery date added as a
field
Accredited Donor Solicitors who have been authorized by PBiA to collect Sticker donations in its
behalf will remit the donation amount net of its solicitation share based on the signed
agreement between itself and PBiA. However, all check payments collected by donor solicitors
shall be forwarded to PBiA and its share shall be released by PBiA, not later than 7 days after
check clearing.
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To make the Sticker even cheaper per ton of CO2 captured, PBiA may need to gather the
scientific studies that show the 100% reduction of methane and 50% reduction in NO2 from
riceland farming, netting out the methane and NO2 released during bochar production using
pyrolysis, to increase the CO2 Equivalent Offset thus, the P1,500 sticker is actually removing say
3 tons of CO2 and making it therefore only P500/ton of CO2. This will make Biochar one of the
cheapest ways to offset CO2.
Project Funding target donation solicitations will be based on Finance’s required funding
projection and Network’s Biochar production.
Monitoring Excel File shall be forwarded to Finance weekly.
Collaterals
1.)
2.)
3.)
Prepares and Designs Brochures, Flyers and other promotional materials
Requests Admin to print these promotional materials
Conducts regular physical inventory of collaterals
Finance
Accounting
Sticker Donations
1.)
2.)
3.)
Upon receipt of Monitoring Excel File from Project Funding, reconciliation shall be done
against actual donations received. Check payments shall be recognized upon clearing.
All sticker donations shall be recorded and bi-monthly donation collection report shall
be generated identifying Local Network Beneficiaries and Donation Solicitors.
Follows up donations for released stickers
Other Donations
1.)
In the event the project receives donations outside the Sticker Program, these shall be
recorded under “Other donations” and its particulars shall be recorded
Sticker Donation Local Network Share Distribution
1.)
2.)
3.)
Upon generation of the bi-monthly Sticker Donation Collection Report, Local Network
Share shall be processed and corresponding checks shall be prepared
Approval of Vouchers and Checks shall be signed by the Accountant, Finance Head and
President
Forwards Vouchers and checks to Admin for delivery
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Sticker Donation Donor Solicitor Share Distribution
1.)
Upon generation of the bi-monthly Sticker Donation Collection Report, Donor Solicitors
Share shall be processed and corresponding checks shall be prepared
Approval of Vouchers and Checks shall be signed by the Accountant, Finance Head and
President
Forwards Vouchers and checks to Admin for delivery
2.)
3.)
Reportorial Requirements
PBiA shall follow standard accounting procedures and shall set up an accounting system that fit
its operations and shall comply with all financial reportorial requirements of governing agencies
(i.e. SEC, City of Makati, Bureau of Internal Revenue).
Financial Planning
1.)
2.)
Prepares a five-year financial plan
A yearly budget and targets shall be prepared based on the five-year financial plan
presented on a monthly basis
A monthly, quarterly and year-end comparative reports shall be prepared of actual
performance against projected
3.)
Admin
Government Registration, Permits and Licenses
1.)
2)
Handles SEC Registration and yearly General Information Sheet and Financial Statement
submission to SEC
Handles Barangay and Business Permits renewal with the City of Makati City
Agreements
1.)
2.)
3.)
Prepares Memorandum of Agreement between PBiA and NGO Partner
Prepares Memorandum of Agreement between NGO, LGU and PO
Prepares Application Forms and Accreditation Agreements between PBiA and Donor
Solicitors and Deed of Undertaking to Remit Collected Donations
Collaterals and Forms
1.)
2.)
Facilitates printing of Brochures, Flyers and calling cards
Facilitates printing of Master Certificates, Sub-certificates and Accounting forms
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Donor Kits
1.)
Prepares Donor Kits
Admin Support
1.)
2.)
3.)
4.)
Facilitates delivery of Stickers and Sub-certificates in coordination with Project Funding
Facilitates pick up of donation checks
Facilitates delivery or deposit Local Networks Donations Share (NGO)
Facilitates delivery or deposit of Donor Solicitors Share
Website Data Updating
1.)
Gathers updated data from PBiA’s different departments (Issuance of Master
Certificates, Sub-certificates and Stickers) and forwards to outsourced web
designer/maintenance officer to keep website updated
LOCAL NETWORK
Upon Receipt of Accreditation Letter and Certificate (Training has been conducted)
Biochar Production and Master Certificate Issuance
PO
1.)
2.)
3.)
4.)
5.)
6.)
7.)
8.)
Assigns an Authorized Signatory and Representative and formally informs PBiA through
a letter of the assignment with the specimen signature of the assigned authorized
signatory and representative
Produces biochar using pyrolysis based on the training manual received
Bags the biochar into sacks of 25 kilos each
Completes sets of 44 bags (1,100 kilos or 1.1 tons) for incorporation into rice farmland
Informs NGO to schedule actual incorporation
Target production for the first year is 220 tons. With 52 weeks in a year, target
production per week is 4.4 tons or 176 bags
Checks the 3 logbooks entries and signs them to Validate every 1.1 tons of Biochar
incorporated into soil
Signs the Master Certificate to certify 1.1 tons of Biochar incorporated into soil
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NGO
1.)
2.)
3.)
4.)
5.)
6.)
6.)
7.)
8.)
9.)
10.)
11.)
12.)
Assigns an Authorized Signatory and Representative and formally informs PBiA through
a letter of the assignment with the specimen signature of the assigned authorized
signatory and representative
Acts as overall Coordinator of the Biochar Project for the Local Network and Custodian
of the Master Certificates and 3 Control Logbooks
Monitors production of biochar by the PO
Schedules actual incorporation of biochar upon receiving information from PO of
completed sets of 44 bags of biochar with the LGU and PO representatives. This should
be done weekly.
Brings the 3 Logbooks on incorporation date for the signature of all the authorized
signatories
Fills out the details of the 3 Control Logbooks and signs them to validate 1.1 tons of
Biochar incorporated into soil
Informs PBiA of incorporated biochar into farmlands
Issues the Master Certificate upon receipt of authorization from PBiA and serial
number(s) to be used
Signs the Master Certificate to certify 1.1 tons of Biochar incorporated into soil
Asks the PO and LGU authorized signatories to sign the Master Certificate in their role as
certifiers
Records the Master Certificate issuance in the 3 Control Logbooks
Sends the Master Certificates to PBiA
Coordinates with PBiA on Sticker Issuance and Donations raised
LGU
1.)
2.)
3.)
4.)
Assigns an Authorized Signatory and Representative and formally informs PBiA through
a letter of the assignment with the specimen signature of the assigned authorized
signatory and representative
Sends the Authorized representative and signatory to scheduled actual biochar
incorporation into soil
Checks the 3 logbooks entries and signs them to Validate every 1.1 tons of Biochar
incorporated into soil
Signs the Master Certificate to certify 1.1 tons of Biochar incorporated into soil
Donation Share Distribution
1.)
2.)
3.)
Donation share distribution to the Local Network via the NGO shall be done bi-monthly
NGO, PO and LGU receive advise from PBiA that a donation share remittance has been
made to the account of the NGO
NGO verifies with the bank if the remittance has been credited
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Philippine Biochar Association
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4.)
5.)
6.)
7.)
2011
After verification, NGO prepares the vouchers and checks for the share of the PO and
LGU based on the donation sharing structure stated in their tripartite agreement.
NGO sends the vouchers and checks to the PO and LGU
PO and LGU issues and official receipt to the NGO for donations received
NGO sends photocopies of receipts to PBiA
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Philippine Biochar Association