Contributions Made to or Coursed Through the Knights of Columbus Council is Deductible from the Gross Income of the Contributors

October 12, 1987 BIR RULING NO. 314-87 30 (h) 149-84 314-87 Gentlemen : This refers to your letter dated August 12, 1987 requesting a ruling that voluntary contributions coursed through your council for the construction, completion and maintenance of your parish church in Moonwalk Village, Las Pias, Metro Manila, be allowed as a deduction from the gross income of the donor. It is represented that the Knights of Columbus Council No. 7618 is a catholic, family and fraternal organization committed to, among others, the promotion of social and intellectual intercourse among its members and conducts, educational, charitable, religious, social welfare and public relief works in the community; and that the purpose of your request is to attract more benefactors for the construction and maintenance of the church where your council is attached. In reply, please be informed that since your council is organized for religious, charitable, and civic purposes, donations and/or contributions made to or coursed through your council is deductible from the gross income of the donors or contributors to the extent of 6% in the case of individual donors, or 3% in the case of corporate donors of the taxpayer's taxable income as computed without the benefit of this deduction, pursuant to Section 30(h) in relation to Section 21(a) of the Tax Code, as amended. For this purpose, the receipt issued by your council evidencing the donation shall be sufficient. Moreover, the aforesaid donations/contributions are exempt from gift tax provided not more than 30% of said donations/contributions shall be used for administration purposes, pursuant to Section 104(3) of the same Code. Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner