Launching a non-profit organization or a foundation is an impactful way toward driving social change in the Philippines. Nevertheless, the process requires a clear understanding of the regulatory framework set by the Securities and Exchange Commission (SEC) and other relevant agencies. This article details exactly the process of starting a foundation in the Philippines.
1. Define Your Mission and Vision
Prior to starting the paperwork, you must clearly define the core purpose of your foundation. Will you be addressing poverty alleviation?
In the Philippines, foundations are generally classified as non-stock, non-profit corporations. To be recognized as a foundation, your group must have a specific fund to support its projects. Setting a clear goal guarantees that your articles of incorporation match your long-term objectives.
Step 2: Securing Your Name and Legal Status
The primary hurdle is filing with the Securities and Exchange Commission (SEC). The founders need to check that your desired name is not already taken.
Reserving the Name: Use the SEC online portal to reserve your name. Make sure the name contains 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 typically required to be maintained in a bank.
Documentation Requirements
To move how to start a foundation philippines forward, you must prepare the following documents:
Founding Charter: This document outlines the names of the incorporators, the organization's goal, and the primary location.
Bylaws: These guidelines dictate the daily activities of the foundation, such as how board meetings are held and how leaders are elected.
Financial Certification: A legal document confirming that the minimum funds have been received.
Taxation and the BIR
After receiving your SEC certificate, the how to start a foundation philippines next important step in the foundation setup process is registering with the Bureau of Internal Revenue (BIR). The entity must apply for a Tax Identification Number (TIN), register its books of accounts, and seek tax-exempt status.
Note that non-profit status does not automatically mean you are tax-free. You must specifically apply for a tax-exempt ruling from the BIR to avoid income tax on contributions.
Step 5: how to start a foundation philippines Local Governance and Social Welfare
Your foundation must also secure a Mayor’s Permit or Business Permit from the municipality where your headquarters resides.
Additionally, if your how to start a foundation philippines foundation provides social welfare activities, you ought to seek accreditation from the Department of Social Welfare and Development how to start a foundation philippines (DSWD). DSWD registration is critical for credibility and allows you to perform public solicitations legally.
Final Thoughts
Mastering how to start a foundation Philippines is a rigorous process, but it paves the way for lasting change. By following these steps, you ensure your foundation is formally recognized and equipped to assist the Filipino people.