Establishing a non-profit organization or a foundation is a noble endeavor toward addressing societal issues in the Philippines. Nevertheless, the process necessitates a clear understanding of the regulatory framework set by the Securities and Exchange Commission (SEC) and other relevant agencies. This article explains exactly how to start a foundation Philippines.
Step 1: Establishing Your Purpose
Prior to starting the paperwork, you must clearly define the primary mission of your foundation. Will you be addressing healthcare?
In the Philippines, foundations are generally classified as non-stock, non-profit corporations. To be recognized as a foundation, your organization must have a dedicated fund to support its projects. Setting a clear goal ensures that your bylaws match your long-term intentions.
The SEC Registration Process
The first legal step is registering with the Securities and Exchange Commission (SEC). You must verify that your desired name is unique.
Reserving the Name: Use the SEC electronic system to hold your name. Ensure it includes terms like "Foundation" or "Inc." as mandated by law.
Initial Funding: For registered foundations in the Philippines, a starting fund of PHP 1,000,000 is typically required to be deposited in a bank.
3. Preparing Essential Documents
To complete the registration, you how to start a foundation philippines have to compile the following materials:
Founding Charter: This document lists the founders' identities, the purpose of the foundation, and the primary location.
Bylaws: These regulations govern the daily activities of the foundation, including things like how board meetings are conducted and how officers are elected.
Treasurer’s Affidavit: A legal how to start a foundation philippines document confirming that the initial funds have been received.
4. Obtaining a Tax Identification Number (TIN)
Once you have your SEC certificate, the next crucial step in the foundation setup process is visiting the Bureau of Internal Revenue (BIR). Your foundation must secure a Tax Identification Number (TIN), how to start a foundation philippines set up its accounting records, and apply for tax-exempt status.
Remember that being a non-profit does not automatically mean you are tax-free. You must formally petition for a tax-exempt ruling from the BIR to avoid income tax on contributions.
5. Local how to start a foundation philippines Permits and DSWD Accreditation
The new entity must likewise obtain a Mayor’s Permit or Business Permit from the city hall where your office is located.
Additionally, if your foundation delivers social welfare services, you should seek accreditation from the Department of Social how to start a foundation philippines Welfare and Development (DSWD). This accreditation is vital for credibility and allows you to perform public solicitations formally.
Final Thoughts
Understanding how to establish a non-profit in the Philippines is a rigorous process, but it sets the stage for social progress. By adhering to these regulations, you help ensure your foundation is properly structured and prepared to help the community.