Deductibility of Donations — Religious and Non-Profit Organization

December 12, 1979 BIR RULING NO. 116-79 Deductibility of donations religious and non-profit organization This refers to your letter dated May 12, 1979 inquiring whether donations to you as a religious and non-profit organization can be deducted by the donors from their gross income for income tax-purposes. You stated that the donations will be spent to complete your chapel, a part of which will be utilized in nursery classes and as Day Care Center and, likewise, to support said classes and center. cd In reply, I have the honor to inform you that since the donations will be made to you as a religious organization, said donations are deductible from the gross income of the donor to an amount not in excess of 6%, in the case of individual donors and 3%, in the case of corporate donors, of the taxpayer's taxable net income (computed without first deducting the contributions). (Sec. 30(h), Tax Code) Even if you are conducting nursery classes and Day-Care Centers, such undertakings are incidental to the purpose for which you were organized which is religious. Hence, the donations received by you to support said classes and centers are still considered donations to a religious organizations which are deductible from the gross income of the donor under the 6% and 3% limitations, as the case may be.