Creating a non-profit organization or a foundation is an impactful way toward helping the community in the Philippines. However, the process demands 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.
1. Define Your Mission and Vision
Prior to starting the paperwork, you must determine the core purpose of your foundation. Is your goal related to education?
In the Philippines, foundations are usually classified as non-stock, non-profit corporations. To be recognized as a foundation, your organization must have a dedicated fund to support its projects. Having a solid mission guarantees that your bylaws reflect your long-term objectives.
The SEC Registration Process
The primary hurdle is filing with the Securities and Exchange Commission (SEC). You must verify that your proposed name is not already taken.
Name Reservation: Use the SEC electronic system to hold your name. Ensure it includes terms like "Foundation" or "Inc." as stipulated by law.
Initial Funding: For registered foundations in the Philippines, a base capital of PHP 1,000,000 is standardly required to be deposited in a bank.
Documentation Requirements
To proceed, you will need the following documents:
Founding Charter: This document details the founders' identities, the purpose of the foundation, and the principal office address.
Bylaws: These rules dictate the daily activities of the foundation, such as how board meetings are conducted and how leaders are elected.
Treasurer’s Affidavit: A sworn statement stating that the required funds have been received.
Taxation and the BIR
Once you have your SEC certificate, the next vital step in the foundation setup process is applying to the Bureau of Internal Revenue (BIR). Your foundation must apply for a Tax Identification Number (TIN), set up its how to start a foundation philippines accounting records, and request tax-exempt status.
Keep in mind that non-profit status does not automatically mean you are tax-free. You must specifically apply for a tax-exempt ruling from the BIR to minimize income tax on donations and grants.
5. Local Permits and DSWD Accreditation
The organization must also get how to start a foundation philippines a Mayor’s Permit or Business Permit from the Local Government Unit (LGU) where your headquarters resides.
Furthermore, if your foundation offers social welfare services, you should register with the Department of Social how to start a foundation philippines Welfare and Development (DSWD). This accreditation is vital for credibility and allows you to conduct how to start a foundation philippines public solicitations lawfully.
Final Thoughts
Mastering how to start a foundation Philippines is a thorough process, but it how to start a foundation philippines paves the way for lasting change. By following these steps, you guarantee your foundation is formally recognized and equipped to assist the Filipino people.