Establishing a non-profit organization or a foundation is a significant step toward driving social change in the Philippines. Nevertheless, the process requires a clear understanding of the administrative steps set by the Securities and Exchange Commission (SEC) and other governing agencies. This article explains exactly the process of starting a foundation in the Philippines.
1. Define Your Mission and Vision
Before diving into the paperwork, you must articulate the core purpose of your foundation. Are you focusing on environmental conservation?
In the local context, foundations are usually classified as non-stock, non-profit corporations. To be recognized as a foundation, your organization must have a dedicated fund to sustain its projects. Setting a clear goal guarantees that your articles of incorporation align with your long-term objectives.
2. Name Reservation and SEC Registration
The first legal step is registering with the Securities and Exchange Commission (SEC). It is necessary to check that your chosen name is unique.
Name Reservation: Use the SEC online portal to reserve your name. Ensure it includes terms like "Foundation" or "Inc." as mandated by law.
Minimum Capital Requirement: For registered foundations in the Philippines, how to start a foundation philippines a minimum initial contribution of PHP 1,000,000 is usually required to be deposited in a bank.
3. how to start a foundation philippines Preparing Essential Documents
To move forward, you will need the following documents:
Founding Charter: This file outlines the founders' identities, the purpose of the foundation, and the principal office address.
Bylaws: These rules dictate the daily activities of the foundation, including things like how board meetings are conducted and how officers are elected.
Treasurer’s Affidavit: A sworn statement stating that the minimum funds have been deposited.
Step 4: Registering with the BIR
After receiving your SEC certificate, the next crucial step in how to start how to start a foundation philippines a foundation Philippines is applying to the Bureau of Internal Revenue (BIR). The organization must obtain a Tax Identification Number (TIN), register its books of accounts, and seek tax-exempt status.
Note that being a non-profit does not automatically mean you are tax-free. You must formally petition for a Certificate of Tax Exemption from the BIR to avoid income tax on funding.
Final Compliance Steps
The new entity must also get a Mayor’s Permit or Business Permit from the city hall where your office is located.
Moreover, if your foundation delivers social welfare activities, you must register with the Department of how to start a foundation philippines Social Welfare and Development (DSWD). This step is essential for credibility and allows you to perform fundraising activities formally.
Final Thoughts
Learning how to establish a non-profit in the Philippines is a detailed process, but how to start a foundation philippines it creates the foundation for lasting change. By following these steps, you guarantee your foundation is legally compliant and equipped to assist the community.