Launching a non-profit organization or a foundation is a noble endeavor toward helping the community in the Philippines. Nevertheless, the process demands a clear understanding of the regulatory framework set by the Securities and Exchange Commission (SEC) and other related agencies. This article explains exactly the process of starting a foundation in the Philippines.
Step 1: Establishing Your Purpose
Before diving into the paperwork, you must determine the main objective of your foundation. Is your goal related to healthcare?
In the local context, foundations are generally classified as non-stock, non-profit corporations. To qualify as a foundation, your group must have a specific fund to fund its projects. Defining your vision early guarantees that your founding documents align with your long-term intentions.
The SEC Registration Process
The first legal step is applying with the Securities and Exchange Commission (SEC). The founders need to verify that your proposed name is unique.
Name Reservation: 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 typically required to be maintained in a bank.
3. Preparing Essential Documents
To proceed, you have to compile the following how to start a foundation philippines documents:
Articles of Incorporation: This file outlines the names of the incorporators, the purpose of the foundation, and the primary location.
Operating Rules: These regulations manage the daily activities of the foundation, including how board meetings are held and how officers are how to start a foundation philippines elected.
Financial Certification: A sworn statement confirming that the required funds have been deposited.
Taxation and the BIR
Upon obtaining your SEC certificate, the next important step in the foundation setup process is registering with how to start a foundation philippines the Bureau of Internal Revenue (BIR). Your how to start a foundation philippines foundation must obtain a Tax Identification Number (TIN), set up its accounting records, and seek tax-exempt status.
Remember that being a non-profit does not instantly mean you are exempt from all taxes. You must formally petition for a tax-exempt ruling from the BIR to be cleared from income tax on funding.
Step 5: Local Governance and Social Welfare
The organization must also get a Mayor’s Permit or Business Permit from the Local Government Unit (LGU) where your office is located.
Moreover, if your foundation provides social welfare activities, you must register with the Department of Social Welfare and Development (DSWD). This accreditation is vital for trust and allows you to manage donation drives lawfully.
Final Thoughts
Learning how to start a foundation Philippines is a thorough process, but it creates the foundation for lasting change. By completing these requirements, you guarantee your how to start a foundation philippines foundation is legally compliant and equipped to assist the community.