51��Ƶ����

A Donation Agreement is a legal contract that formalizes the transfer of property or assets from a donor to a recipient without payment. Under Philippine Civil Code provisions, this document details the donor's intent to give and the donee's acceptance of the gift, making the transfer legally binding and irreversible.

Beyond basic ownership transfer, these agreements protect both parties by clearly stating any conditions attached to the donation, tax implications, and warranties about the property's condition. For charitable institutions in the Philippines, properly documented donations can qualify for tax incentives under the National Internal Revenue Code, making these agreements particularly important for nonprofit organizations.

Use a Donation Agreement whenever you're giving or receiving significant property or assets without payment in the Philippines. This includes real estate transfers to family members, charitable contributions to nonprofits, or corporate donations to foundations. The agreement becomes essential when the donated item's value exceeds PHP 5,000, as Philippine law requires written documentation.

These agreements are particularly important for tax-deductible donations, property transfers requiring registration with local authorities, or gifts with specific conditions attached. They protect both donor and recipient by clearly documenting the transfer terms, preventing future disputes about ownership, and ensuring compliance with Philippine donation laws and tax regulations.

• Basic Property Donation: For simple transfers of personal property or real estate, includes basic terms about the gift and acceptance
• Conditional Donation: Contains specific requirements the recipient must meet to retain the donation, common in educational or charitable giving
• Corporate Philanthropic: Used by businesses making donations, includes tax documentation requirements and corporate governance provisions
• Family Transfer: Tailored for inter-family donations, addressing Philippine family laws and inheritance implications
• Charitable Institution: Specifically structured for nonprofit organizations, incorporating BIR requirements for tax-deductible donations

• Donors: Individuals, corporations, or organizations transferring property or assets, responsible for specifying donation terms and conditions
• Recipients/Donees: Charitable institutions, foundations, schools, or family members accepting the donated property and agreeing to conditions
• Legal Counsel: Lawyers who draft and review Donation Agreements to ensure compliance with Philippine Civil Code requirements
• Tax Professionals: Accountants and tax advisors who ensure proper documentation for BIR reporting and tax benefits
• Witnesses: Required parties who validate the agreement's execution, particularly for high-value donations under Philippine law

• Property Details: Gather complete description of donated items, including titles, certificates, or appraisals for valuable property
• Party Information: Collect legal names, addresses, and tax identification numbers of both donor and recipient
• Conditions: Document any specific terms, restrictions, or requirements attached to the donation
• Tax Considerations: Determine gift tax implications and gather BIR documentation requirements
• Signatures: Identify required signatories and witnesses as per Philippine law
• Documentation: Prepare supporting papers like property titles, corporate resolutions, or tax certificates

• Identification Details: Full legal names, addresses, and tax identification numbers of donor and donee
• Property Description: Clear, detailed description of donated property or assets with current market value
• Transfer Declaration: Express statement of donor's intent to give and donee's acceptance
• Conditions and Terms: Any restrictions, requirements, or special conditions attached to the donation
• Warranties: Donor's declaration of legal ownership and right to transfer the property
• Tax Provisions: Statements regarding gift tax liability and BIR reporting requirements
• Execution Requirements: Signature blocks, witness provisions, and notarization details

A Donation Agreement differs significantly from an Asset Purchase Agreement in several key ways. While both involve transferring property, their fundamental purposes and legal requirements under Philippine law are distinct.

• Payment Structure: Donation Agreements involve gratuitous transfers without compensation, while Asset Purchase Agreements require payment of agreed consideration
• Tax Treatment: Donations may trigger donor's tax under the National Internal Revenue Code, whereas asset purchases incur capital gains or value-added tax
• Legal Requirements: Donations need specific formalities like acceptance and insinuation for high-value transfers, while asset purchases focus more on warranties and representations
• Reversibility: Donations can be revoked under specific circumstances in Philippine law (like ingratitude), while properly executed asset purchases are generally final
• Documentation: Donation Agreements require special forms for tax purposes and potential court registration, whereas Asset Purchase Agreements focus on commercial terms and due diligence