Establishing a non-profit organization or a foundation is a noble endeavor toward helping the community in the Philippines. Nevertheless, the process requires a clear understanding of the regulatory framework set by the Securities and Exchange Commission (SEC) and other governing 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 clearly define the core purpose of your foundation. Is your goal related to poverty alleviation?
In the local context, foundations are typically classified as non-stock, non-profit corporations. To qualify as a foundation, your group must have a particular fund to support its projects. Defining your vision early ensures that your articles of incorporation match your long-term intentions.
2. Name Reservation and SEC Registration
The first legal step is applying with the Securities and Exchange Commission (SEC). It is necessary to verify that your proposed name is unique.
Name Reservation: Use the SEC electronic system to reserve your name. Ensure it includes terms like "Foundation" or "Inc." as stipulated by law.
Minimum Capital Requirement: For recognized foundations in the Philippines, a starting fund of PHP 1,000,000 is typically required to be held in a bank.
3. Preparing Essential Documents
To complete the registration, you must how to start a foundation philippines prepare the following documents:
Founding Charter: This document outlines the names of the incorporators, the organization's goal, and the principal office address.
Operating Rules: These guidelines how to start a foundation philippines govern the management 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.
Step 4: Registering with the BIR
Upon obtaining your SEC certificate, the next vital step in the foundation setup process how to start a foundation philippines is registering with the Bureau of Internal Revenue (BIR). The entity must obtain a Tax Identification Number (TIN), set up its accounting records, and apply for tax-exempt status.
Remember that being a non-profit does not immediately 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 obtain a Mayor’s Permit or Business Permit from the municipality where your office is located.
Moreover, if your foundation provides social welfare programs, you ought to register with the Department of Social Welfare and Development (DSWD). DSWD registration is critical for credibility and allows you to perform donation drives legally.
Final Thoughts
Mastering how how to start a foundation philippines to start a foundation Philippines is a rigorous process, but it creates the foundation for meaningful impact. By adhering to these regulations, you help ensure your foundation is legally compliant and prepared how to start a foundation philippines to help the community.