Creating a non-profit organization or a foundation is an impactful way toward helping the community in the Philippines. Nevertheless, the process requires a clear understanding of the legal requirements set by the Securities and Exchange Commission (SEC) and other governing agencies. This article details exactly how to start a foundation Philippines.
The First Step: Identifying Your Goal
Before beginning the paperwork, you must articulate the main objective of your foundation. Will you be addressing healthcare?
In the Philippines, foundations are usually classified as non-stock, non-profit corporations. To qualify as a foundation, your organization must have a particular fund to support its projects. Defining your vision early helps ensure that your articles of incorporation match your long-term intentions.
2. Name Reservation and SEC Registration
The primary hurdle is filing with the Securities and Exchange Commission (SEC). You must check that your desired name is not already taken.
Name Reservation: Use the SEC online portal to hold 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 deposited in a bank.
3. Preparing Essential Documents
To proceed, you will need the following materials:
Articles of Incorporation: This file lists the founders' identities, the how to start a foundation philippines purpose of the foundation, and the primary location.
Bylaws: These regulations govern the daily activities of the foundation, including how board meetings are conducted and how officers are elected.
Financial Certification: A sworn statement verifying that the minimum funds have been deposited.
4. how to start a foundation philippines Obtaining a Tax Identification Number (TIN)
After receiving your SEC certificate, the next important step in how to start a foundation Philippines is visiting the Bureau of Internal Revenue (BIR). Your foundation how to start a foundation philippines must apply for a Tax Identification Number (TIN), set up its accounting records, and apply for tax-exempt status.
Note that non-profit status does not immediately mean you are tax-free. You must specifically apply how to start a foundation philippines for a Certificate of Tax Exemption from the BIR to minimize income tax on donations and grants.
Final Compliance Steps
Your foundation 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 programs, how to start a foundation philippines you ought to seek accreditation from the Department of Social Welfare and Development (DSWD). This accreditation is essential for trust and allows you to conduct public solicitations formally.
Summary
Learning how to establish a non-profit in the Philippines is a thorough process, but it sets the stage for lasting change. By following these steps, you help ensure your foundation is formally recognized and prepared to help the community.