Establishing 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 legal requirements set by the Securities and Exchange Commission (SEC) and other governing agencies. This article details exactly how to start a foundation Philippines.
1. Define Your Mission and Vision
Before beginning the paperwork, you must determine the primary mission of your foundation. Will you be addressing environmental conservation?
In the Philippines, foundations are generally classified as non-stock, non-profit corporations. To be recognized as a foundation, your entity must have a specific fund to sustain its projects. Having a solid mission guarantees that your founding documents reflect your long-term objectives.
The SEC Registration Process
The initial formal requirement is registering 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 hold your name. Make sure the name contains terms like "Foundation" or "Inc." as required by law.
Initial Funding: For registered foundations in the Philippines, a minimum initial contribution of one million pesos is usually required to be maintained in a how to start a foundation philippines 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 internal operations of the foundation, such as how board meetings are held and how leaders are elected.
Treasurer’s Affidavit: A how to start a foundation philippines legal document confirming that the minimum funds have been received.
4. Obtaining a Tax Identification Number (TIN)
After receiving your SEC certificate, the next crucial step in the foundation setup process is visiting the Bureau of Internal Revenue (BIR). The organization must how to start a foundation philippines secure 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 how to start a foundation philippines are tax-free. You must specifically apply for a tax-exempt ruling from the BIR to minimize income tax on donations and grants.
Final Compliance Steps
Your foundation how to start a foundation philippines must likewise secure a Mayor’s Permit or Business Permit from the city hall where your headquarters resides.
Furthermore, if your foundation delivers social welfare activities, you should seek accreditation from the Department of Social Welfare and Development (DSWD). This step is vital for legitimacy and allows you to manage fundraising activities lawfully.
Summary
Learning how to start a foundation Philippines is a thorough process, but it paves the way for lasting change. By completing these requirements, you ensure your foundation is properly structured and prepared to help the public.