Nonprofit, non-stock organizations are exempted from taxation. Requests for tax exemption have to be filed with the Bureau of Internal Revenue on a regular basis, usually every year. CSOs can engage in income-generating activities. They are not required to pay income tax as long as they do not issue dividends to their members and their revenues are used solely for nonprofit activities. Funding Base and Support CSOs in the Philippines generally rely on membership dues, donations, direct and indirect subsidies, and incomes from their own business activities.
Donations come from both local and foreign sources in cash or in kind.
Development CSOs are highly dependent on public and private foreign assistance. These grants are usually project-oriented. Donors do not ordinarily provide funds for institution-building of recipient CSOs. Endowment funds for development CSOs are rare. There are a few examples of endowment funds being created through debt conversions, sales of land assets, and large corporate donations.