Launching a non-profit organization or a foundation is an impactful way toward addressing societal issues in the Philippines. Nevertheless, the process demands a clear understanding of the regulatory framework set by the Securities and Exchange Commission (SEC) and other governing agencies. This article explains exactly how to start a foundation Philippines.
1. Define Your Mission and Vision
Before beginning the paperwork, you must determine the main objective of your foundation. Are you focusing on healthcare?
In the Philippines, foundations are usually classified as non-stock, non-profit corporations. To qualify as a foundation, your organization must have a particular fund to support its projects. Defining your vision early helps ensure that your founding documents reflect your long-term objectives.
The SEC Registration Process
The primary hurdle is applying with the Securities and Exchange Commission (SEC). It is necessary to check that your desired name is available.
Reserving the Name: Use the SEC electronic system to reserve your name. Ensure it includes terms like "Foundation" or "Inc." as mandated by law.
Initial Funding: For recognized foundations in the Philippines, a minimum initial contribution of PHP 1,000,000 is standardly required to be held in a bank.
Documentation Requirements
To proceed, you must prepare the following records:
Articles of Incorporation: This document details the names of the incorporators, the purpose of the foundation, and the primary location.
Operating Rules: These guidelines manage the management of the foundation, including things like how board meetings are conducted and how officers are elected.
Financial Certification: A legal document stating that the minimum funds have how to start a foundation philippines been received.
Step 4: Registering with the BIR
After receiving your SEC certificate, the next important step in the foundation setup process is visiting the Bureau of Internal Revenue (BIR). The entity must secure how to start a foundation philippines a Tax Identification Number (TIN), register its books of accounts, and request tax-exempt status.
Remember that being a non-profit does not automatically mean you how to start a foundation philippines are exempt from all taxes. You must actively seek for a Certificate of Tax Exemption from how to start a foundation philippines the BIR to minimize income tax on donations and grants.
Final Compliance Steps
Your foundation must likewise secure a Mayor’s Permit or Business Permit from the city hall where your headquarters resides.
Furthermore, if your foundation delivers social welfare activities, you should seek accreditation from the Department of Social Welfare and Development (DSWD). This accreditation is how to start a foundation philippines critical for credibility and allows you to perform donation drives legally.
Conclusion
Understanding how to establish a non-profit in the Philippines is a detailed process, but it sets the stage for social progress. By following these steps, you guarantee your foundation is formally recognized and ready to serve the Filipino people.