Establishing a non-profit organization or a foundation is a noble endeavor 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 diving into the paperwork, you must determine the primary mission of your foundation. Is your goal related to environmental conservation?
In the Philippines, foundations are generally classified as non-stock, non-profit corporations. To be recognized as a foundation, your group must have a specific fund to sustain its projects. Defining your vision early helps ensure that your founding documents reflect your long-term objectives.
The SEC Registration Process
The initial formal requirement is filing with the Securities and Exchange Commission (SEC). You must confirm that your chosen name is available.
Reserving the Name: Use the SEC online portal to reserve your name. Make sure the name contains terms like "Foundation" or "Inc." as required by law.
Initial Funding: For recognized foundations in the Philippines, a minimum initial contribution of one million pesos is standardly required to be deposited in a bank.
Documentation Requirements
To proceed, you will need 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 legal document confirming that the minimum funds have been received.
Taxation and the BIR
After receiving your SEC certificate, the next important step in the foundation setup process how to start a foundation philippines is applying to the Bureau of Internal Revenue (BIR). The entity must obtain a Tax Identification Number (TIN), register its books of accounts, and seek tax-exempt status.
Note that being a non-profit does not automatically mean you are tax-free. You must actively seek for a Certificate of Tax Exemption from the BIR to minimize income how to start a foundation philippines tax on donations and grants.
Final Compliance Steps
Your foundation must likewise get a Mayor’s Permit or Business Permit from the city hall where your headquarters resides.
Furthermore, if your foundation delivers social welfare activities, how to start a foundation philippines you should register with the Department of Social Welfare and Development (DSWD). This step is vital for legitimacy and allows you to perform how to start a foundation philippines fundraising activities lawfully.
Summary
Mastering how to start a foundation Philippines is a rigorous process, but it how to start a foundation philippines creates the foundation for meaningful impact. By adhering to these regulations, you help ensure your foundation is legally compliant and prepared to help the public.