(v) All the members of the Board of Trustees of the non-stock, non-profit corporation, organization or NGO do not receive
compensation or remuneration for their service to the aforementioned organization.
Donations and gifts to accredited non-stock, non-profit corporations/NGOs shall be exempt from donors tax provided that
not more than 30% of the said donations and gifts for the taxable year shall be used by such accredited non-stock, non-profit
corporations/NGOs institutions qualified-donee institution for administration purposes.
A certificate of donation shall be issued on every donation or gift received by these accredited institutions. Within 30 days
after the receipt of the Certificate of Donation, the donor must give a notice for every donation worth over P1,000,000 to the
Revenue District Officer where his place of business is located. Donors and accredited non-stock, non-profit
corporation/NGO shall file donations and contributions given and received respectively, at the time of filing their income tax
returns.
For foreign donations, the Department of Finance (DoF) opinion dated May 16, 2011 states that, in general, all donations
coming from abroad are subject to the payment of duties, taxes and other charges before they are released from customs
custody. Only the following donations to NGOs may be granted customs duty exemption: (1) Donations to duly accredited
relief organization of the Department of Social Welfare and Development pursuant to Sec. 105(1) of the Tariff and Customs
Code of the Philippines; (2) Donations to non-stock/non-profit charitable and/or religious institution, including government
and private hospitals duly registered with the Department of Health, upon favorable recommendation by the National
Economic and Development Authority, in accordance with its existing rules and regulations. However, both donations are
subject to the payment of value-added tax (VAT) under Section 107 of the National Internal Revenue Code, as amended.
The only transactions which are exempt from VAT pursuant to Section 109(q) of the Tax Code of 1997 are those transactions
under international agreements to which the Philippines is a signatory or those under special laws such as Republic Act No.
7277.
If corporations really want to exercise their moral, ethical and community responsibilities to the groups with special needs
and concerns, tax benefits (or the lack thereof) would not be a hindrance to their cause. Helping our needy countrymen to
alleviate their plight should be unconditional or even in the absence of any monetary considerations. Happy Independence
Day.
http://www.punongbayanaraullo.com/pnawebsite/pnahome.nsf/section_docs/CS909U_13-6-12