Establishing a non-profit organization or a foundation is an impactful way toward addressing societal issues in the Philippines. However, the process demands a clear understanding of the legal requirements set by the Securities and Exchange Commission (SEC) and other relevant agencies. This article outlines exactly how to start a foundation Philippines.
The First Step: Identifying Your Goal
Before beginning the paperwork, you must clearly define the main objective of your foundation. Will you be addressing education?
In the Philippines, foundations are typically classified as non-stock, non-profit corporations. To qualify as a foundation, your entity must have a particular fund to fund its projects. Defining your vision early ensures that your bylaws reflect your long-term aims.
Step 2: Securing Your Name and Legal Status
The initial formal requirement is filing with the Securities and Exchange Commission (SEC). It is necessary to check that your chosen name is unique.
Reserving the Name: Use the SEC electronic system 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, a starting fund 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, such as how board meetings are held and how officers are elected.
Treasurer’s Affidavit: A legal document stating that the initial funds have been deposited.
Step 4: Registering with the BIR
Once you have your SEC certificate, the next crucial step in the foundation setup process is registering with the Bureau of Internal Revenue (BIR). Your foundation must apply for a Tax Identification Number (TIN), set up its accounting records, how to start a foundation philippines and request tax-exempt status.
Keep in mind that non-profit status does not instantly mean you are exempt from all taxes. You must specifically apply for a tax-exempt ruling from the BIR to be cleared from income tax on donations and grants.
5. Local Permits and DSWD Accreditation
The organization must also secure a Mayor’s Permit or Business Permit from the municipality where your office is located.
Furthermore, if how to start a foundation philippines your foundation offers social welfare services, you ought to register with the Department of Social Welfare and Development (DSWD). This accreditation is critical for credibility and allows you to manage public solicitations legally.
Final Thoughts
Learning how to establish a non-profit in the how to start a foundation philippines Philippines is a rigorous process, but it creates the foundation for lasting change. By following these steps, you help ensure your foundation is legally how to start a foundation philippines compliant and equipped to assist the Filipino people.