Launching a non-profit organization or a foundation is an impactful way toward helping the community in the Philippines. Regardless, the process requires a clear understanding of the administrative steps set by the Securities and Exchange Commission (SEC) and other governing agencies. This article outlines exactly how to start a foundation Philippines.
The First Step: Identifying Your Goal
Before diving into the paperwork, you must articulate the primary mission of your foundation. Are you focusing on environmental conservation?
In the local context, foundations are generally classified as non-stock, non-profit corporations. To qualify as a foundation, your entity must have a particular fund to sustain its projects. Defining your vision early guarantees that your founding documents align with your long-term objectives.
Step 2: Securing Your Name and Legal Status
The primary hurdle is applying with the Securities and Exchange Commission (SEC). You must verify that your desired name is available.
Name Reservation: Use the SEC online portal to reserve your name. Ensure it includes terms like "Foundation" or "Inc." as mandated by law.
Initial Funding: For recognized foundations in the Philippines, a base how to start a foundation philippines capital of one million pesos is typically required to be maintained in a bank.
3. Preparing Essential Documents
To move forward, you will need the following documents:
Articles of Incorporation: This document lists the names of the incorporators, the organization's goal, and the primary location.
Operating Rules: These regulations manage the how to start a foundation philippines management of the foundation, such as how board meetings are held and how officers are elected.
Treasurer’s Affidavit: A sworn statement stating that the minimum funds have been contributed.
Taxation and the BIR
Upon how to start a foundation philippines obtaining your SEC certificate, the next vital step in how to start a foundation Philippines is visiting the Bureau of Internal Revenue (BIR). Your how to start a foundation philippines foundation must secure a Tax Identification Number (TIN), set up its accounting records, and request tax-exempt status.
Note that being a non-profit does not instantly mean you are tax-free. You must formally petition for a Certificate of Tax Exemption from the BIR to avoid income tax on funding.
Final Compliance Steps
The new entity must also get 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 programs, you should seek accreditation from the Department of Social Welfare and Development (DSWD). DSWD registration is vital for legitimacy and allows you to conduct fundraising activities lawfully.
Conclusion
Mastering how to establish a non-profit in the Philippines is a detailed process, but it creates the foundation for lasting change. By following these steps, you help ensure your foundation is legally compliant and equipped to assist the community.