BIR Ruling

March 24, 1976 Messrs. Siguion Reyna, Montecillo and Ongsiako A. Soriano Building Ayala Avenue, Makati, Rizal Attention: Atty . M . G . Montecillo For the Firm Gentlemen : This refers to your application for qualification on behalf of your client, the Leukemia Foundation, Inc., as a donee or legatee entitled to the benefits of Presidential Decree No. 507. The documentary evidence submitted by you show that the Leukemia Foundation, Inc., is a non-stock, non-profit corporation, duly registered with the Securities and Exchange Commission; and that the Foundation is a charitable organization as defined in Section 3(c) of Revenue Regulations No. 8-74 implementing Presidential Decree No. 507, no part of the net income of which inures to the benefit of any of its members. In view 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 in computing the taxable net income of the donor, subject to the condition that not more than 30% of the donation or bequest shall be used by that Foundation for administration purposes. However, in order that that Foundation may maintain its status as a qualified recipient of tax free donation, it should file within three months from the end of its fiscal or calendar year period an annual information, to which shall be attached the following: (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 project, which should also be certified to by the president or treasurer or 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, bequest and donations received during the year was used for administration purposes; (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 of individual. (Sec. 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