Creating a non-profit organization or a foundation is a noble endeavor toward helping the community in the Philippines. Nevertheless, the process demands a clear understanding of the regulatory framework set by the Securities and Exchange Commission (SEC) and other relevant agencies. This article outlines exactly the process of starting a foundation in the Philippines.
Step 1: Establishing Your Purpose
Prior to starting the paperwork, you must clearly define the core purpose of your foundation. Are you focusing on education?
In the local context, foundations are typically classified as non-stock, non-profit corporations. To qualify as a foundation, your organization must have a particular fund to support its projects. Setting a clear goal ensures that your articles of incorporation match your long-term intentions.
2. Name Reservation and SEC Registration
The first legal step is applying with the Securities and Exchange Commission (SEC). It is necessary to verify that your proposed name is unique.
Name Reservation: Use the SEC electronic system to reserve your name. Make sure the name contains terms like "Foundation" or "Inc." as mandated by law.
Minimum Capital Requirement: For recognized foundations in the Philippines, a starting fund of how to start a foundation philippines PHP 1,000,000 is typically required to be held in a bank.
3. Preparing Essential Documents
To complete the registration, you must prepare the following documents:
Founding Charter: This document outlines the names of the how to start a foundation philippines incorporators, the organization's goal, and the principal office address.
Operating Rules: how to start a foundation philippines These guidelines govern the management of the foundation, including how board meetings are conducted and how officers are elected.
Financial Certification: A sworn statement stating that the required funds have been contributed.
Step 4: Registering with the BIR
Once you have your SEC certificate, the next vital step in how to start how to start a foundation philippines a foundation Philippines is registering with the Bureau of Internal Revenue (BIR). The entity must obtain a Tax Identification Number (TIN), set up its accounting records, and request tax-exempt status.
Remember that being a non-profit does not instantly mean you are exempt from all taxes. You must formally petition for a Certificate of Tax Exemption from the BIR to be cleared from income tax on funding.
Step 5: Local Governance and Social Welfare
The organization must also obtain a Mayor’s Permit or Business Permit from the Local Government Unit (LGU) where your office is located.
Additionally, if your foundation provides social welfare programs, you should seek accreditation from the Department how to start a foundation philippines of Social Welfare and Development (DSWD). DSWD registration is critical for legitimacy and allows you to conduct public solicitations legally.
Final Thoughts
Learning how to establish a non-profit in the Philippines is a detailed process, but it creates the foundation for meaningful impact. By completing these requirements, you guarantee your foundation is legally compliant and prepared to help the Filipino people.