Legal aspects[edit]

Donations are given without return consideration. This lack of return consideration means that,
in common law, an agreement to make a donation is an "imperfect contract void for want of
consideration."[5] Only when the donation is actually made does it acquire legal status as a transfer or
property.[6]
In politics, the law of some countries may prohibit or restrict the extent to which politicians may
accept gifts or donations of large sums of money, especially from business or lobby
groups (see campaign finance). Donations of money or property to qualifying charitable
organizations are also usually tax deductible. Because this reduces the state's tax income, calls
have been raised that the state (and the public in general) should pay more attention towards
ensuring that charities actually use this 'tax money' in suitable ways.
There have been discussions on whether also a donation of time should be tax deductible. [7]
The person or institution giving a gift is called the donor, and the person or institution getting the gift
is called the donee.[6]

Donating in the name of others[edit]

It is possible to donate in the name of a third party, making a gift in honor or in memory of someone
or something. Gifts in honor or memory of a third party are made for various reasons, such as
holiday gifts, wedding gifts, in memory of somebody who has died, in memory of pets or in the name
of groups or associations no longer existing. Memorial gifts are sometimes requested by their
survivors (e.g. "in lieu of flowers, contributions may be made to ABC Charity"), usually directing
donations to a charitable organization for which the deceased was a donor or volunteer, or for a
cause befitting the deceased's priorities in life or manner of death. Memorial donations are also
sometimes given by people if they are unable to attend the ceremony.

Donating Anonymously[edit]
There are also circumstances when people like to donate funds to their preferred causes by not
revealing their names. Many donors such as public figures or philanthropists like to stay anonymous
while making generous donations according to their wishes. Many donors like to stay anonymous
because
For every donation over One Million pesos (Php 1,000,000), the donor shall give a
letter of notice to the Revenue District Officer (RDO) where his place of business is
located within thirty (30) days after the receipt of the Certificate of Donation attaching
to the said letter the copy of the Certificate of Donation issued to him by the
accredited non-stock, non-profit corporation/NGO and statement of valuation, subject
to further confirmation by the Bureau as to its correctness and accuracy.

Claims for deductibility of donations and contributions by the donors shall be filed at
the time of filing their income tax returns by attaching the said certificate and
necessary evidence mentioned above.

However, tax deductibility based on generosity and compassion is not always

guaranteed because the donor is constrained by the requirements of tax deductibility
as mandated by law. This is to prevent corporations or individuals from claiming non-
existent donations to reduce their taxable income, and, on the other hand, to ensure
that recipients of donations faithfully use the funds for the intended causes.