Launching a non-profit organization or a foundation is an impactful way toward addressing societal issues in the Philippines. Nevertheless, the process demands a clear understanding of the administrative steps set by the Securities and Exchange Commission (SEC) and other relevant agencies. This article outlines exactly the process of starting a foundation in the Philippines.
Step 1: Establishing Your Purpose
Prior to starting the paperwork, you must clearly define the core purpose of your foundation. Are you focusing on 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 primary hurdle is filing with the Securities and Exchange Commission (SEC). You must confirm that your proposed name is unique.
Reserving the Name: Use the SEC electronic system to reserve your name. Make sure the name contains terms like "Foundation" or "Inc." as stipulated by law.
Initial Funding: For recognized foundations in the Philippines, a starting fund of one million pesos is standardly required to be held in a bank.
3. Preparing Essential Documents
To move forward, you must prepare the following records:
Articles of Incorporation: This file lists the names of the incorporators, the organization's goal, and the principal office address.
Operating Rules: These guidelines govern the management of the foundation, including how board meetings are held and how leaders are elected.
Treasurer’s Affidavit: A legal document confirming that the initial funds have been received.
Taxation and the BIR
Upon obtaining your SEC certificate, the next important step in the foundation setup process is applying to the Bureau of Internal Revenue (BIR). The organization must secure a Tax Identification Number (TIN), register its books of accounts, and seek tax-exempt status.
Keep in mind that non-profit status does not automatically mean you are exempt from all taxes. You must actively seek for a Certificate how to start a foundation philippines of Tax Exemption from the BIR to minimize income tax on donations and grants.
Final Compliance Steps
Your foundation must likewise get a Mayor’s Permit or Business Permit from the Local Government Unit (LGU) where your headquarters resides.
Moreover, if your foundation provides social welfare services, you should seek accreditation from the Department of Social Welfare and Development (DSWD). This accreditation is essential for legitimacy and allows how to start a foundation philippines you to manage fundraising activities lawfully.
Summary
Learning how to establish a non-profit in the Philippines is a thorough process, but it paves the way how to start a foundation philippines for lasting change. By completing these requirements, you ensure how to start a foundation philippines your foundation is properly structured and equipped how to start a foundation philippines to assist the Filipino people.