Launching 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 relevant agencies. This article details exactly the process of starting a foundation in the Philippines.
1. Define Your Mission and Vision
Before beginning the paperwork, you must clearly define the core purpose of your foundation. Is your goal related to education?
In the Philippines, foundations are generally classified as non-stock, non-profit corporations. To qualify as a foundation, your group must have a particular fund to fund its projects. Defining your vision early guarantees that your articles of incorporation align with your long-term objectives.
2. Name Reservation and SEC Registration
The primary hurdle is filing with the Securities and Exchange Commission (SEC). It is necessary to check that your chosen name is available.
Name Reservation: Use the SEC online portal to hold your name. Make sure the name contains terms like "Foundation" or "Inc." as mandated by law.
Initial Funding: For registered foundations in the Philippines, a starting fund of PHP 1,000,000 is usually required to be maintained in a bank.
Step 3: Drafting Your Paperwork
To complete the registration, you must prepare the following records:
Articles of Incorporation: This file outlines the founders' identities, the organization's goal, and the principal office address.
Bylaws: These regulations how to start a foundation philippines manage the internal operations of the foundation, such as how board meetings are held and how leaders are elected.
Treasurer’s Affidavit: A legal document verifying that the initial funds have been contributed.
Taxation and the BIR
Upon obtaining your SEC certificate, the next crucial step in the foundation setup process is visiting the Bureau of Internal Revenue (BIR). how to start a foundation philippines The organization must secure a Tax Identification Number (TIN), register its books of accounts, and apply for tax-exempt status.
Remember that being a non-profit does not automatically mean you are tax-free. You must how to start a foundation philippines formally petition for a Certificate of Tax Exemption from the BIR to avoid income tax on funding.
5. Local Permits and DSWD Accreditation
The organization must likewise secure a Mayor’s Permit or Business Permit from the Local Government Unit (LGU) where your headquarters resides.
Additionally, if your foundation provides social welfare activities, you must register with the Department of Social Welfare and Development (DSWD). This step is vital for legitimacy and allows you how to start a foundation philippines to perform donation drives lawfully.
Summary
Mastering how to start a foundation Philippines is a detailed process, but it sets the stage for lasting change. how to start a foundation philippines By adhering to these regulations, you ensure your foundation is properly structured and equipped to assist the Filipino people.