Are Donations to Non-Accredited Organizations Subject to Donor’s Tax in the Philippines?

Short answer

Generally, yes. If you donate to an organization in the Philippines that does not have donee institution accreditation (i.e., it is not an accredited non-stock, non-profit or NGO with BIR-recognized status), your gift is usually subject to donor’s tax—unless it falls under one of the specific statutory exemptions (e.g., gifts to the national government or certain entities with special laws).

Below is a complete, practical guide.

1) The legal frame in one page

Governing law: The National Internal Revenue Code (NIRC) as amended (notably by TRAIN).
Tax base & rate: A flat 6% donor’s tax on the total taxable gifts made by a donor during the calendar year in excess of ₱250,000 (the annual exemption).
Who is taxed: The donor (not the recipient).
Aggregate rule: All gifts you make within the same year are summed to determine if/when you exceed ₱250,000.
Key exemptions:
- Gifts to or for the use of the National Government, its agencies, and political subdivisions (if not conducted for profit).
- Gifts to qualified educational, charitable, religious, cultural, social welfare institutions and accredited NGOs, subject to conditions (not more than 30% for administration, etc.).
What “accredited” means: An NGO/NSNP typically needs PCNC accreditation (or other sectoral accreditation, as applicable) and BIR issuance/recognition of donee status for donor’s-tax exemption and full deductibility.
Non-accredited donee: If a donee lacks recognized donee status, the gift is not exempt under the NGO exemption. The donor may still get a limited income-tax deduction (see §10), but donor’s tax generally applies after the yearly ₱250,000 exclusion.

2) What counts as an “accredited” donee?

For donor’s-tax exemption under the “NGO/charitable” category, the donee generally must:

Be a non-stock, non-profit entity operated exclusively for religious, charitable, educational, cultural, or social-welfare purposes;
Have no part of its income inuring to any private individual;
Observe the ≤30% administrative expense cap for the donation’s use;
Hold current accreditation (e.g., PCNC or other recognized accreditor) and BIR confirmation of donee institution status.

If any of these pillars is missing, the exemption does not apply.

Practical tip: Donors should ask for the donee’s BIR donee certificate (or equivalent proof) and confirm it is valid on the date of donation. If it lapsed—even if the group was accredited before—the gift may be taxable.

3) Donations to non-accredited organizations

Default rule: Taxable to the donor at 6% once the donor’s aggregate gifts for the year exceed ₱250,000.
No “stranger” surcharge: The old “stranger vs. relative” higher rate no longer applies; TRAIN unified rates to 6%.
Exception pathways: A gift to a non-accredited organization can still be non-taxable if it qualifies under another exemption (e.g., donation to the National Government or to an entity specifically exempt by special law). Lacking those, donor’s tax applies.

4) Resident vs. non-resident donors

Resident citizens and resident aliens: Taxable on gifts of property wherever situated (worldwide), with Philippine exemptions applying if the donee qualifies.
Non-resident aliens (not engaged in business in the Philippines): Generally taxable only on gifts of property situated in the Philippines. Situs rules matter (see §5).

5) Valuation & situs rules (what value, which country?)

Timing: Value assets at the moment the gift is made.
Real property (Philippines): Use the higher of zonal value (BIR) or fair market value (assessor).
Shares in PH corporations:
- Listed: use market quotation on the gift date (or nearest trading day).
- Unlisted: use book value (for common) or appropriate valuation method (for preferred).
Tangible movable property: Use fair market value on the date of donation.
Intangibles: Situs follows specific rules (e.g., shares issued by a Philippine corporation generally have Philippine situs).

6) Compliance 101 (forms, deadlines, documents)

Return: BIR Form 1800 (Donor’s Tax Return).
Deadline: Within 30 days from the date of donation (each separate donation triggers the 30-day filing rule).
Where to file/pay: At the RDO having jurisdiction over the donor (or as otherwise directed).
Key attachments:
- Deed of donation or similar instrument;
- Proof of valuation (zonal value/assessor’s schedule, stock certificates and valuations, appraisals for significant personal property);
- TINs of donor and donee;
- If claiming exemption (e.g., accredited NGO or special-law entity): donee’s accreditation/recognition & utilization commitment;
- If donating to government: acceptance by the government agency and confirmation of non-profit operations.

Rolling-year watch: Because the ₱250,000 exclusion is per calendar year, donors should track cumulative gifts. If a later gift pushes the total over ₱250,000, tax applies only to the excess, at 6%.

7) Penalties & interest

Late filing or payment can trigger:

Surcharge (25% or 50% in cases like willful neglect/false return),
Interest (per prevailing statutory rate),
Compromise/other penalties under the NIRC and revenue issuances.

8) Interaction with other taxes & fees

Documentary Stamp Tax (DST): Generally no DST on a pure donation instrument (DST targets specific documents/transactions; ordinary deeds of donation of real property are not typically subject to DST that applies to sales).
Local transfer/registration fees: LGUs may impose transfer fees for real property transfers (even by donation). Expect registry of deeds and local assessor/treasurer fees.
VAT/Income tax on the donee: Not relevant to the donor’s tax, but a donee engaged in business may have its own tax consequences on using/disposing the donated property.

9) Special categories & carve-outs

Gifts to the National Government and its agencies (not conducted for profit) are exempt, regardless of accreditation.
Gifts to foreign charities are not covered by the domestic NGO exemption unless a treaty/special law says otherwise; donor’s tax likely applies to resident donors (subject to situs for non-residents).
Calamity/relief periods: Congress or the BIR sometimes issues temporary relief (administrative or legislative). Outside those windows, regular rules apply.
Conditional or earmarked gifts: Still taxable to the donor unless the donee is in an exempt class and all statutory conditions are satisfied (including utilization timelines and ≤30% admin rule, if applicable).

10) Income-tax deductibility vs. donor’s-tax exemption (don’t mix them up)

Donor’s tax is a transfer tax on the act of giving.
Income-tax deductions reduce the donor’s taxable income.

For non-accredited donees:

Your gift is generally subject to donor’s tax (after the ₱250,000 annual exclusion).
For income tax, the donation may be a limited deduction (typically up to 10% of taxable income for individuals or 5% for corporations) if it meets the general “charitable contribution” criteria—but not the “full deductibility” available for accredited donees.
Full deductibility (i.e., 100%) is usually reserved for donations to accredited donees or government priority programs that meet strict conditions.

Bottom line: Deductible does not automatically mean donor’s-tax-exempt—and vice versa.

11) Practical scenarios

Gift to a small, local cause (non-accredited):
- Donor gives ₱500,000 in May. No other gifts in the year.
- Taxable amount: ₱500,000 − ₱250,000 = ₱250,000
- Donor’s tax @6%: ₱15,000
- Return due: Within 30 days from the May gift.
Multiple gifts during the year:
- January: ₱150,000 to a friend; July: ₱200,000 to a non-accredited community org.
- Aggregate: ₱350,000 → Taxable excess: ₱100,000 → Tax: ₱6,000 (due within 30 days from the July gift that breached the threshold).
Donation to an accredited NGO:
- ₱1,000,000 to an NGO with valid donee status; NGO commits to ≤30% admin.
- Donor’s tax: Exempt (documentation required).
- Income-tax deduction: Typically fully deductible (subject to conditions).
Donation to a government hospital:
- ₱2,000,000 in equipment to a public hospital.
- Donor’s tax: Exempt (government donee). Keep acceptance and inventory/use documents.
Non-resident giving PH real property to a local non-accredited foundation:
- Situs is in the Philippines, so Philippine donor’s tax applies after threshold. Registration fees & local transfer costs expected.

12) Due-diligence checklist for donors

[ ] Is the donee government or special-law exempt? If yes → donor’s tax exempt (document it).
[ ] If NGO/NSNP, ask for current accreditation (PCNC or sectoral) and BIR donee recognition. Verify validity dates.
[ ] Secure a utilization commitment and ensure ≤30% for admin (when applicable).
[ ] Verify valuation (zonal, assessor, market, book) as of gift date.
[ ] Track year-to-date gifts against the ₱250,000 exclusion.
[ ] File BIR Form 1800 and pay any tax within 30 days.
[ ] Keep a compliance file: deed, board resolutions, IDs/TINs, receipts, accreditation proofs.

13) Frequently asked questions

Q1: If the organization is a registered non-stock, non-profit corporation but not accredited, is my donation automatically tax-free? No. Non-stock/non-profit status alone does not confer donor’s-tax exemption. Absent another exemption (e.g., government donee, special law), gifts to non-accredited donees are taxable after the annual ₱250,000 exclusion.

Q2: The donee says “accreditation pending.” Can I rely on that? No. Exemption is tested on the date of donation. Pending or lapsed accreditation generally means taxable.

Q3: What if the donee uses more than 30% for admin? Then the gift fails the NGO exemption requirement. The BIR may treat the donation as taxable (and may even revisit prior exemptions if misused).

Q4: Can I split a large gift into smaller amounts to avoid tax? Splitting does not help; the law aggregates gifts within the same calendar year.

Q5: Are gifts in-kind (equipment, shares, crypto, etc.) covered? Yes. All property (tangible/intangible) can be a taxable gift. Use the proper valuation at the time of donation.

Q6: Are gifts to my spouse/children taxable? Generally yes (after the annual ₱250,000 exclusion and aggregation). There are distinct civil-law rules on donations between spouses; for tax, focus on the donor’s-tax computation and filing duties.

14) Executive takeaway

If the donee is non-accredited and not government/special-law exempt, assume the donation is taxable after your ₱250,000 annual exclusion, at a flat 6%.
To secure exemption (and often full income-tax deductibility), give to properly accredited donees and document everything on the date of donation.
Always file on time (BIR Form 1800), value assets correctly, and watch the 30% admin cap where applicable.

Friendly reminder

This article provides a comprehensive overview but does not replace tailored legal or tax advice. For substantial gifts, unusual assets, cross-border elements, or reliance on special exemptions, it’s wise to have a Philippine tax professional review your exact facts and documents before you give.