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CDA MC No. 13-2026

Regulatory AdvisoryIssued 17 August 2026Effective October 1, 2026

The Cooperative Development Authority has issued Memorandum Circular No. 13, Series of 2026. The circular clarifies and standardizes how cooperatives allocate, manage, and spend their statutory Community Development Fund (CDF).

What’s New?

  • Expanded Use of CDF: From 1 to 6 spending avenues including Koop Kapatid & CSF Programs.
  • Spending Caps Introduced: Ceiling for Infrastructure & Calamity Relief spending
  • 2030 Deadline: Cooperatives with unspent CDF exceeding ₱10 Million (as of FY 2018) must fully spend the funds by December 31, 2030.
  • Compliance Officer Required: Coops must designate a Community Development / CDF Compliance Officer

Expanded Use of CDF

  • Previous Rule: CDF spending was restricted mostly to an "Adopted Community" or basic disaster response.
  • New Rule: Coops can now spend across 6 distinct avenues:

1. Adopt-a-Community - Local community partnerships with LGUs.

2. Adopt-a-Cooperative - Inter-coop assistance (Koop Kapatid Program).

3. Social Services - General community programs under the Social Development Plan.

4. Infrastructure Projects - Physical facilities and Soft infrastructure (digital/education).

5. Fortuitous Events - Local disaster response & recovery.

6. Financial/Loan Assistance - CSF Program contributions via co-op banks.

Spending Ceilings of Projects

  • Infrastructure: 30% to 50% of CDF but not to exceed Php1,000,000 for Large and Medium Cooperatives; Up to Php200,000 of CDF for Small and Micro Cooperative.
  • Fortuitous Events: 10% to 50% of CDF but not to exceed Php300,000 for Large and Medium Cooperatives; 40% to 50% CDF but not to exceed Php100,000 for Small and Micro Cooperative.

Other Details to Note

  • Strict Prohibitions: CDF cannot be passed to foundations, unions, or federations, used for politics, or spent on projects that mostly benefit Coop members rather than the broader community.
  • Progressive Penalties: Payment of fine, non-issuance of certificate of compliance, dissolution of the cooperative
  • UN SDGs Integration: All CDF projects must align with the 17 UN Sustainable Development Goals ("Gabay sa Kaunlaran" framework)
  • Compliance Staff Role: Coops must designate a Community Development (CDF) Compliance Officer
  • Deadline for Unspent CDF: Accumulated amount of CDF exceeding 10 Million (as of FY 2018) must be full spent by December 31, 2030.
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The advisory in six cards

The same summary, in the form we publish on social media. Select any card to read it full size.

This advisory is a general summary and is not a substitute for professional advice. For guidance on your own situation, please consult us.

Related: AAC Tax Calendar · AAC Tax Code · All advisories

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