Launching a non-profit organization or a foundation is an impactful way toward addressing societal issues in the Philippines. Regardless, the process necessitates a clear understanding of the legal requirements set by the Securities and Exchange Commission (SEC) and other governing agencies. This article explains exactly how to start a foundation Philippines.
Step 1: Establishing Your Purpose
Before diving into the paperwork, you must clearly define the core purpose of your foundation. Are you focusing on education?
In the local context, foundations are usually classified as non-stock, non-profit corporations. To qualify as a foundation, your organization must have a particular fund to fund its projects. Setting a clear goal ensures that your bylaws align with your long-term aims.
Step 2: Securing Your Name and Legal Status
The first legal step is applying with the Securities and Exchange Commission (SEC). The founders need to check that your desired name is not already taken.
Name Reservation: Use the SEC online portal to hold your name. Ensure it includes terms like "Foundation" or "Inc." as stipulated by law.
Initial Funding: For registered foundations in the Philippines, a base capital of PHP 1,000,000 is usually required to be maintained in a bank.
Step 3: Drafting Your Paperwork
To move forward, you have to compile the following records:
Articles of Incorporation: This file lists the founders' identities, the purpose of the foundation, and the primary location.
Bylaws: These regulations manage the daily activities of the foundation, such as how board meetings are conducted and how leaders are how to start a foundation philippines elected.
Treasurer’s Affidavit: A legal document confirming that the minimum funds have been received.
Taxation and the BIR
After receiving your SEC certificate, the next important step in how to start a foundation Philippines is applying to the Bureau of Internal Revenue (BIR). The organization must secure a Tax Identification how to start a foundation philippines Number (TIN), register its books of accounts, and seek tax-exempt status.
Keep in mind that non-profit status does not automatically mean you are tax-free. You how to start a foundation philippines must actively seek for a Certificate of Tax Exemption from the BIR to minimize income tax on donations and grants.
Final Compliance Steps
Your foundation must likewise get a Mayor’s Permit or Business how to start a foundation philippines Permit from the city hall where your headquarters resides.
Furthermore, if your foundation delivers social welfare activities, how to start a foundation philippines you should register with the Department of Social Welfare and Development (DSWD). This step is vital for legitimacy and allows you to manage fundraising activities lawfully.
Final Thoughts
Mastering how to start a foundation Philippines is a rigorous process, but it creates the foundation for meaningful impact. By completing these requirements, you ensure your foundation is properly structured and prepared to help the public.