Establishing a non-profit organization or a foundation is a significant step 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 explains exactly how to start a foundation Philippines.
1. Define Your Mission and Vision
Before diving into the paperwork, you must clearly define the core purpose of your foundation. Is your goal related to education?
In the local context, foundations are typically classified as non-stock, non-profit corporations. To qualify as a foundation, your organization must have a particular fund to fund its projects. Setting a clear goal ensures that your bylaws align with your long-term aims.
Step 2: Securing Your Name and Legal Status
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 how to start a foundation philippines 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 how to start a foundation philippines registration, you must prepare the following documents:
Founding Charter: This document outlines the names of the incorporators, the purpose of the foundation, and the primary location.
Bylaws: These guidelines govern the daily activities of the foundation, including how board meetings are conducted and how officers are elected.
Financial Certification: A sworn how to start a foundation philippines statement stating that the initial funds have been contributed.
Taxation and the BIR
Once you have your SEC certificate, the next important step in how to start a foundation Philippines is applying to the Bureau of Internal Revenue (BIR). Your foundation must obtain a Tax Identification Number (TIN), register its books of accounts, and request tax-exempt status.
Keep in mind that being a non-profit does not instantly mean you are exempt from all taxes. You must actively seek for a Certificate of Tax Exemption from the BIR to be cleared from income tax on donations and grants.
Final Compliance Steps
Your how to start a foundation philippines foundation must likewise get a Mayor’s Permit or Business Permit from the Local Government Unit (LGU) where your headquarters resides.
Furthermore, if your foundation delivers social welfare activities, you should register with the Department of Social Welfare and Development (DSWD). This step is vital for legitimacy and allows you to manage fundraising activities lawfully.
Summary
Learning how to start a how to start a foundation philippines foundation Philippines is a thorough process, but it paves the way for meaningful impact. By completing these requirements, you ensure your foundation is legally compliant and prepared to help the public.