Establishing a non-profit organization or a foundation is an impactful way toward driving social change in the Philippines. However, the process demands a clear understanding of the regulatory framework set by the Securities and Exchange Commission (SEC) and other related agencies. This article details exactly how to start a foundation Philippines.
Step 1: Establishing Your Purpose
Prior to starting the paperwork, you must articulate the primary mission of your foundation. Is your goal related to poverty alleviation?
In the local context, foundations are usually classified as non-stock, non-profit corporations. To be recognized as a foundation, your entity must have a dedicated fund to sustain its projects. Defining your vision early helps ensure that your articles of incorporation align with your long-term aims.
Step 2: Securing Your Name and Legal Status
The initial formal requirement is registering with the Securities and Exchange Commission (SEC). You must confirm that your chosen name is available.
Reserving the Name: Use the SEC electronic system to reserve your name. Make sure the name contains terms like "Foundation" or "Inc." as stipulated by law.
Minimum Capital Requirement: For registered foundations in the Philippines, a base capital of how to start a foundation philippines PHP 1,000,000 is typically required to be held in a bank.
Step 3: Drafting Your Paperwork
To how to start a foundation philippines move forward, you have to compile the following records:
Founding Charter: This document lists the founders' identities, the purpose of the foundation, and the primary location.
Bylaws: These how to start a foundation philippines regulations govern the daily activities of the foundation, including how board meetings are conducted and how officers are elected.
Financial Certification: A sworn statement stating that the required funds have been contributed.
4. Obtaining a Tax Identification Number (TIN)
Upon obtaining your SEC certificate, the next crucial step in the foundation setup process is visiting the Bureau of Internal Revenue (BIR). The organization must secure a Tax Identification Number (TIN), set up its accounting records, and apply for tax-exempt status.
Note that non-profit status does not automatically mean you are exempt from all taxes. You must actively seek for a Certificate of Tax Exemption from the BIR to how to start a foundation philippines be cleared from income tax on funding.
5. Local Permits and DSWD Accreditation
The organization must likewise secure a Mayor’s Permit or Business Permit from the city hall where your headquarters resides.
Moreover, if your foundation provides social welfare services, you must seek accreditation from the Department of Social Welfare and Development (DSWD). This step is critical for credibility and allows you to conduct public solicitations formally.
Summary
Mastering how how to start a foundation philippines to start a foundation Philippines is a detailed process, but it sets the stage for lasting change. By completing these requirements, you help ensure your foundation is legally compliant and ready to serve the Filipino people.