A Philippine legal article on donations of real property for religious purposes, and how Memoranda of Agreement (MOA) should be structured to be valid, enforceable, and registrable.

1) Why this topic matters

Donating land “for church,” “for chapel,” “for mosque,” “for worship,” “for a religious mission,” or “for religious activities” sounds straightforward—but in Philippine law the outcome depends on:

What instrument was signed (Deed of Donation vs MOA vs “authorization” vs simple letter)
Whether legal form requirements were followed (especially for immovable property)
Who the donee is (individual minister? unregistered group? corporation sole? non-stock corporation?)
Whether the donation is conditional (and how conditions are drafted)
Whether title transfer and registration were completed (Registry of Deeds/BIR/LGU steps)
Whether constitutional restrictions apply (foreign ownership)
Whether the land itself has restrictions (agrarian reform, ancestral land, co-ownership, conjugal property, easements, zoning)

A common mistake is using a “MOA” when the parties actually intend a transfer of ownership. In many cases, a MOA can govern use, construction, management, or obligations—but cannot substitute for the legally required Deed of Donation when ownership is being conveyed.

2) Legal framework at a glance (Philippines)

Key bodies of law that typically govern this topic:

Civil Code (Donations; obligations & contracts; property and modes)
Property Registration rules (transfer/registration/annotation of real rights)
Revised Corporation Code (religious corporations; corporate capacity to acquire/hold property)
Family Code (marital property; spousal consent requirements)
Constitution (foreign ownership ban on land; religious freedom principles)
Tax laws (donor’s tax, documentary stamp tax, capital gains issues usually not applicable to donation but compliance steps exist; real property tax rules; exemptions for religious use)
Special land laws (agrarian reform restrictions; ancestral domain/land rules; public land limitations; zoning/building regulations)

3) Donation of land in Philippine law: what makes it valid?

A. Core concept

A donation is an act of liberality where the donor disposes of a thing (or right) in favor of the donee who accepts it. For immovable property (land), the law imposes strict formalities.

B. Essential validity requirements (high-level)

For a land donation to be valid and effective as a donation of ownership, the usual essentials are:

Capacity of the donor to donate and of the donee to accept
Donative intent (liberality, not a disguised sale)
A determinate object (specific parcel, identifiable by title/technical description)
Acceptance by the donee
Compliance with form requirements for donations of immovables
No legal prohibition (e.g., foreign donee owning land; donor not the owner; restricted lands)

C. The strict form for donating immovable property

For land, a valid donation generally requires:

A public instrument (notarized deed) clearly describing the property and the donation; and
Acceptance by the donee either:
- in the same deed, or
- in a separate notarized instrument, with proper notice to the donor in the manner required by law.

If these formalities are not met, the donation can be attacked as void (or at least ineffective as a donation of ownership), even if the parties “meant well” and even if the religious group already occupies the property.

D. Delivery and registration: validity vs enforceability vs third persons

Important distinction:

A donation may be “valid between the parties” (if formalities are satisfied), yet title transfer and enforceability against third persons depend heavily on:
- Registration with the Registry of Deeds (issuance of a new TCT in the donee’s name), and
- BIR/LGU compliance (eCAR/clearances, tax filings, transfer requirements).

Unregistered instruments risk problems when:

heirs contest,
creditors attach,
the donor later sells/encumbers,
the land is mortgaged,
boundaries/technical descriptions conflict.

4) “Religious use” donations: what is special (and what is not)

A. The law allows donations to religious entities

Private donors may donate property to churches or religious organizations. There is no general prohibition against donating land “for religious use” as a purpose.

What makes it legally sensitive is not the religious purpose per se, but:

who owns land under the Constitution,
how the donee is organized, and
how conditions are written and enforced.

B. Foreign ownership restrictions (critical)

Philippine land ownership is constitutionally restricted. If the donee is:

a foreign individual, or
a corporation not qualified to own land (e.g., with foreign equity beyond the constitutional limits),

then the donation of land as ownership transfer is legally impermissible.

Practical implication: Even if the religious group is “international,” the entity that will be titled as owner must be a Philippine-qualified landholding entity (often a Philippine-registered religious corporation/non-stock corporation or a corporation sole, if applicable).

C. Corporate personality of religious groups matters

Often, the group occupying the site is not the legal entity capable of owning.

Common donee setups:

Corporation Sole (frequently used in hierarchical churches; the officeholder holds property for the church)
Religious Society / Non-stock Religious Corporation (a juridical entity registered under Philippine corporate law)
Trust-like arrangements (use rights granted to a local entity while ownership remains with a qualified owner)

If donation is made to:

“Pastor Juan dela Cruz” personally, or
an unregistered fellowship/ministry name with no legal personality,

ownership and succession problems can arise (e.g., when the pastor transfers, dies, disputes occur).

Best practice: donation should identify the correct juridical donee and include proof of authority for acceptance (board resolution, secretary’s certificate, etc.).

5) Conditional donations for religious use: how they work, and how they fail

A. Common conditions (and why they are used)

Donors often want any of the following:

“Use only for church/worship activities”
“Build a chapel within X years”
“No sale, no mortgage”
“If use stops, property reverts to donor/heirs”
“Name the church after donor / keep memorial” (a “charge”)

These are typically structured as:

Conditions (often condition subsequent) and/or
Modes/charges (obligations imposed on the donee).

B. Drafting pitfalls

Vague use clause (“for religious purposes”) without defining scope
- Does it include a daycare? clinic? feeding program? dormitory? parking? rental for events?
Unrealistic deadlines (build within 6 months) leading to technical breach
No enforcement mechanism (no process for notice, cure period, proof of breach)
Absolute restraints on alienation drafted too broadly
- Overly absolute prohibitions can be attacked; better to frame as a condition with reversion and clear exceptions (e.g., mortgage only to improve the religious facility with donor’s consent).
Reversion clause not coordinated with registration
- If reversion/conditions are not properly reflected/annotated, disputes become harder and third parties may be affected.

C. Remedies when conditions are breached

Depending on how the deed is written and the nature of the obligation, the donor (or heirs) may seek:

Revocation/rescission of the donation for noncompliance with conditions/charges,
Reversion of ownership if stipulated and legally enforceable, and/or
Damages in proper cases.

Separately, the Civil Code also recognizes revocation for ingratitude in defined cases, but it is narrowly applied and time-sensitive; it is not a substitute for well-drafted conditions.

6) MOA vs Deed of Donation: what each can and cannot do

A. What a MOA is

A Memorandum of Agreement (MOA) is simply a contract label. Its enforceability depends on the usual contract requisites:

consent,
object,
cause,
plus compliance with any form required by law for the transaction involved.

B. Key rule: a MOA cannot “become” a donation of land ownership by naming it so

If the intent is to transfer ownership of land, the instrument must comply with the donation formalities for immovable property (notarized deed + proper acceptance). A MOA that says “donor hereby donates land” but lacks donation formalities or proper acceptance is vulnerable.

C. When a MOA is appropriate in religious land arrangements

A MOA is commonly used for use and project governance rather than transfer of title, such as:

Permission to use land while awaiting donation processing
Lease (including nominal rent) for worship site
Commodatum (loan for use; free use with obligation to return)
Usufruct (right to use and enjoy property for a period)
Construction and management terms (who builds, who pays, who maintains)
Joint undertakings (religious group builds; donor retains title; reversion on termination)
Settlement of disputes (confirming boundaries, obligations, or transition)

D. Registration and third-party effect

If a MOA creates a real right affecting land (e.g., usufruct, long-term lease, easement), it often needs:

notarization as appropriate, and
registration/annotation to bind third parties and protect the user’s rights.

If it is merely an internal operational agreement, it may not be registrable, but still enforceable between the parties.

7) Due diligence: land “red flags” that can void or derail a religious donation

A. Ownership and title integrity

Before donation, verify:

donor is the registered owner (TCT in donor’s name),
technical description matches actual boundaries,
no adverse claims, lis pendens, mortgages, attachments,
no overlapping titles or survey issues.

B. Co-ownership and family property

Donations commonly fail when:

donor is married and property is conjugal/absolute community (spousal consent issues),
property is co-owned with siblings/heirs (donor can generally donate only their share unless others consent),
property is part of an estate not yet settled.

C. Agrarian reform restrictions

If land is agricultural or covered by agrarian reform programs, transfers may be restricted or require approvals; some lands are not freely transferable within certain periods or without compliance.

D. Ancestral land / IP issues

If land is within ancestral domains or subject to indigenous peoples’ rights frameworks, additional consents/requirements may apply.

E. Public land limitations

If land is public land still under patent restrictions or subject to conditions, donation may be limited or prohibited within certain periods or without government compliance.

F. Easements and access

Even donated land may be unusable if:

no right of way,
it is within waterways/shoreline easements,
it violates zoning (cannot build a worship structure),
it is in a hazard zone.

8) Tax and exemption realities (Philippines, practical view)

A. Donor’s tax compliance

Donations of land typically trigger donor’s tax compliance requirements unless an exemption applies. Whether a religious organization qualifies for donor’s tax exemption depends on its legal status and compliance with tax rules for qualified donee institutions (and related requirements).

Practical takeaway: assume tax paperwork is required; confirm exemption eligibility through proper channels before relying on “religious = automatically exempt.”

B. Real property tax (RPT) exemption for religious use

Philippine law recognizes that lands/buildings actually, directly, and exclusively used for religious purposes may be exempt from real property tax.

Key reality: the exemption is use-based, not simply ownership-based. If part of the land is:

leased to commercial tenants,
used for profit-oriented businesses,
not actually devoted to religious use,

that portion may be taxable.

C. Transfer and registration costs

Even donations typically require:

BIR processing steps,
documentary requirements,
Registry of Deeds fees,
possible local transfer-related clearances.

9) How to structure a legally sound donation “for religious use”

A. Use two documents when appropriate

Often the cleanest setup is:

Deed of Donation (conveys ownership, includes conditions/reversion if desired)
MOA (operationalizes the project: construction, timeline, use rules, governance, dispute resolution)

This avoids stuffing operational details into the deed while preserving strict donation validity.

B. Clauses that are usually worth considering

Clear identification of donee (full registered name; proof of authority to accept)
Statement of purpose (religious use + defined permitted activities)
Conditions / charges with:
- measurable milestones,
- documentation requirements,
- notice-and-cure process,
- reversion mechanism if desired
Restrictions on sale/encumbrance tailored and reasonable
Annotation/registration plan (what must be annotated on title)
Allocation of expenses (taxes, registration, surveys)
Dispute resolution (venue, mediation/arbitration clauses if chosen)
Succession/leadership change protection (prevents property capture by individuals)

C. Authority and acceptance

Ensure acceptance is valid:

donee signs through authorized officer,
board resolution/secretary certificate where needed,
acceptance in the deed or separate notarized acceptance with proper notice to donor.

10) Common dispute scenarios (and how the documents should anticipate them)

“We already built on it, but title stayed with donor”
- Risk: donor’s heirs sell or dispute; religious group becomes vulnerable.
- Fix: complete donation formalities and registration; or, at least secure registrable long-term real right (e.g., usufruct/lease) and annotate.
“Donation was to a pastor personally; now the congregation split”
- Risk: property becomes personal asset, not church asset.
- Fix: donate to juridical church entity; include governance protections.
“Donor required construction within X years; delays happened”
- Risk: reversion litigation.
- Fix: realistic timeline, force majeure clause, cure periods, defined proof of progress.
“Religious use clause—then property partly leased to a store”
- Risk: breach of condition; loss of tax exemption.
- Fix: define permitted incidental uses; carve-outs; compliance reporting.
“Foreign missionary group wants title in its name”
- Risk: constitutional invalidity.
- Fix: Philippine-qualified entity as titleholder; structure use rights separately if needed.

11) Practical checklist (Philippines)

If the intent is ownership transfer (true donation)

✅ Verify title, ownership, encumbrances
✅ Confirm donor capacity and spousal/co-owner consents
✅ Confirm donee is a qualified landholding entity
✅ Execute a notarized Deed of Donation with complete property description
✅ Ensure proper acceptance in the legally required form
✅ Process BIR/LGU requirements; secure clearances
✅ Register with Registry of Deeds; issue new TCT; annotate conditions if needed
✅ Align RPT exemption filings with actual use

If the intent is only religious use (not ownership)

✅ Use MOA for governance + choose the correct real right:
- lease, commodatum, usufruct, easement/right-of-way
✅ Notarize and annotate/record where appropriate to protect against third parties
✅ Define use, term, termination, improvements ownership, and dispute process

12) Closing notes

In Philippine practice, the “validity” of donated land for religious use is rarely about religion; it is about formalities, capacity, registrability, and restrictions on land ownership. A MOA can be powerful for operations and use rights—but when ownership is intended, the law expects a properly executed and accepted Deed of Donation, followed by compliant registration steps.

This article is legal information for general Philippine context and is not a substitute for advice on a specific property or document.