How NGOs Can Generate a Certificate of Donation Using N3 AI Accounting?

QNE Software Philippines
Published on July 27, 2026

N3 AI Accounting now allows non-profit organizations to generate a BIR-compliant Certificate of Donation directly from an existing Receive Payment entry or Receipt Voucher. Instead of preparing this certificate manually, an NGO issuing an official receipt for a donation can produce the corresponding certificate from the same transaction record.

This addresses a specific compliance need: under Philippine tax rules, individual and corporate donors can only claim their donation as a tax-deductible expense — and, if the recipient NGO is accredited, as exempt from donor’s tax — if they can present a Certificate of Donation (BIR Form 2322) from the receiving organization. Without it, the donation has no tax standing for the donor.

Who This Feature Is For?

Companies that have the Non-Profit / NGO setting enabled in their Company Profile.
Organizations that regularly receive cash or in-kind donations and are expected by donors to issue proof of donation for tax purposes.
NGOs pursuing or holding PCNC (Philippine Council for NGO Certification) accreditation and BIR Donee Institution status, where the certificate carries the most value to donors.

How It Works in N3 AI Accounting?

Once a company profile is set to Non-Profit, the option to generate a Certificate of Donation becomes available.

Receive Payment — for cash donations recorded as they come in.
Receipt Voucher — for donations acknowledged through voucher entries.

The certificate is generated using the donor and transaction details already captured in the entry (donor name, amount, date, and reference), following the layout of BIR Form 2322 — Certificate of Donation.

The Legal Basis: BIR Form 2322

BIR Form 2322 is a two-part document: the first page is completed by the donee (the NGO) and certifies that a donation of cash, personal property, or real property was received on a given date; the second page is completed by the donor and states the valuation of the donation for deductibility purposes. The Bureau requires donee institutions to issue this certificate within 30 days of receiving a donation, with the original going to the donor, a copy to the BIR, and a copy retained by the donee.

Reference: BIR Form No. 2322, Certificate of Donation (Revised December 2014).

Benefits for Donors

A donor who receives a Certificate of Donation from an NGO using N3 AI Accounting can use it to support two possible tax positions, depending on the NGO’s accreditation status:

Deduction from gross income — Under Section 34(H) of the National Internal Revenue Code (NIRC), donations to qualified non-stock, non-profit organizations may be deducted from the donor’s taxable income. Donations to PCNC-accredited, BIR-registered donee institutions may qualify for full deductibility; donations to non-accredited (but still qualified) organizations are generally limited to 10% of taxable income for individual donors or 5% for corporate donors.
Exemption from donor’s tax — Under Section 101 of the NIRC, gifts to accredited non-stock, non-profit organizations are generally exempt from donor’s tax, provided not more than 30% of the donation is used by the NGO for administrative purposes.
For donations of ₱50,000 and above, the donor is required to file a notice of donation with their Revenue District Office within 30 days of receiving the Certificate of Donation; donations exceeding ₱1,000,000 carry the same notice requirement referenced directly in BIR guidance.

In all cases, the Certificate of Donation is the primary evidence the donor attaches to their own tax filing to support the claim — without it, the BIR has no basis to allow the deduction or exemption.

Benefits for NGOs

Faster issuance — N3 AI Accounting generates the Certificate of Donation directly from a transaction the NGO is already recording, instead of preparing it as a separate manual document.
Consistent, compliant formatting — each Certificate of Donation follows the structure required under BIR Form 2322, reducing the risk of donors receiving incomplete or incorrectly formatted certificates.
Stronger donor relationships — donors who can rely on receiving proper documentation promptly are more likely to give again.
Supports NGOs’ positioning as well-governed, financially accountable organizations — relevant for those pursuing or maintaining PCNC accreditation.

The Certificate of Donation is one part of a wider set of tools N3 AI Accounting offers NGOs — including grant and fund tracking, audit-ready reporting, and AI-powered insights through Quinny AI. PCNC members can also claim an exclusive 30% discount on their N3 AI Accounting subscription. Explore N3 AI Accounting for NGOs now →

The Bottom Line

For NGOs, a Certificate of Donation is more than paperwork — it’s the proof every donor needs to claim their tax benefit, and a small but meaningful sign of how well an organization is run. By generating it straight from a Receive Payment entry or Receipt Voucher, N3 AI Accounting turns something that used to be a manual follow-up task into a natural part of recording the donation itself, so donors get what they need without the NGO having to chase it down.

Ready to Make Donation Certificates Effortless for Your NGO?

See how N3 AI Accounting can help your organization issue Certificates of Donation straight from your existing records — and if you’re a PCNC member, ask about the exclusive 30% discount on your subscription.

Frequently Asked Questions (FAQs)

Can any company in N3 issue a Certificate of Donation?

Only companies with the Non-Profit setting enabled in their Company Profile can generate the certificate from Receive Payment or Receipt Voucher entries.

Does issuing a Certificate of Donation automatically make a donation tax-deductible for the donor?

No. The Certificate of Donation is the required supporting document, but the donor’s actual entitlement to a deduction or donor’s tax exemption depends on the NGO’s accreditation status and on the donor meeting the applicable BIR requirements.

What information does a Certificate of Donation need?

It follows BIR Form 2322: the donee’s name, address, and BIR registration details, the donor’s name and TIN, the date and nature of the donation (cash, personal property, or real property), and, for property donations, its valuation.

Can NGOs use the Certificate of Donation feature for in-kind (non-cash) donations?

BIR Form 2322 covers cash, personal property, and real property donations. Confirm with the product team which of these N3 AI Accounting’s Receive Payment and Receipt Voucher flows currently support before this claim goes into external content.