BIR Ruling

February 22, 1977 Cesar B. Crisol Foundation, Inc. 9th Floor, Prudential Bank Building Ayala Avenue, Makati, Metro Manila Attention: Mr . Cesar B . Crisol President Mr . Amado L . Lacuesta, Jr . Treasurer Gentlemen : This refers to your letter dated June 29, 1976 applying for qualification as a social welfare organization entitled to the benefits afforded by Presidential Decree No. 507. The documentary evidence you submitted show that the Cesar B. Crisol Foundation, Inc. is a non-stock, non-profit corporation duly organized under the laws of the Philippines with the principal objective of providing "for a formal institutional medium capable of initiating, sponsoring, assisting or financing programs, projects and undertakings dedicated to the promotion, improvement and advancement of scientific learning, cultural and social values, and community and agricultural development, all geared towards the promotion of public welfare," and that it is a social welfare organization as defined in Section 3(b) of Revenue Regulations No. 8-74 implementing Presidential Decree No. 507, with no part of its net income inuring to the benefit of any of its members. cdta In consideration thereof, and pursuant to Presidential Decree No. 507, all gifts, bequest, donations, and/or contributions to that foundation are exempt from the donor's and estate taxes and shall be deductible in full from the gross income of the donor, subject to the condition that not more than 30% of the donation or bequest shall be utilized by that corporation for administration purposes. To maintain the status of that Foundation as a qualified donee, recipient or legatee of tax free donations, gifts, bequests and/or contributions, it must file within three months from the end of its fiscal or calendar year period an annual information return with the Chief, Legal Branch, Revenue Region No. 4-B, Quezon City to which the following documents/records must be attached: (a) A list of the donations and bequest received during the year, which should show the name and address of the donors or testators, the amount or market value of each donation or bequest and the disposition thereof. The list should be certified to by the president or treasurer of the organization; (b) A list of the activities and/or projects undertaken by the organization and the cost of each undertaking or projects, which should also be certified to the president or treasurer of the organization; (c) A certification by the president or treasurer of the organization that not more than thirty per centum (30%) of the total gifts, bequests and donations received during the year was used for administration purposes; and (d) A certification by the president or treasurer of the organization that no part of its net income inures to the benefit of any private stockholder or individual. (Section 9, Revenue Regulations No. 8-74 dated September 24, 1974). Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."