Launching a non-profit organization or a foundation is a significant step toward driving social change in the Philippines. However, the process requires a clear understanding of the regulatory framework 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. Is your goal related to 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. Defining your vision early ensures that your articles of incorporation match your long-term intentions.
2. Name Reservation and SEC Registration
The primary hurdle 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. Ensure it includes terms like "Foundation" or "Inc." as stipulated by law.
Minimum Capital Requirement: For recognized foundations in the Philippines, a starting fund of 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: These guidelines dictate the management of the foundation, including how board meetings are conducted how to start a foundation philippines and how officers are elected.
Financial Certification: A sworn statement stating that the required funds have been contributed.
Step 4: Registering with the BIR
Upon obtaining your how to start a foundation philippines SEC certificate, the next vital step in how to start 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 tax-exempt ruling from the BIR to avoid income tax on funding.
5. Local Permits and DSWD Accreditation
The organization must how to start a foundation philippines also obtain a Mayor’s Permit or Business Permit from the municipality where your office is located.
Additionally, if your foundation offers social welfare services, you must seek accreditation from the Department of Social Welfare and Development (DSWD). This accreditation is essential for trust and allows you to conduct public solicitations formally.
Conclusion
Understanding how to establish a non-profit in the Philippines is a detailed process, but it sets the stage for social progress. By following these steps, you guarantee your foundation is formally recognized and ready to serve the Filipino how to start a foundation philippines people.