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 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 determine the primary mission of your foundation. Is your goal related to poverty alleviation?
In the local context, foundations are generally classified as non-stock, non-profit corporations. To qualify as a foundation, your group must have a specific fund to sustain its projects. Defining your vision early helps ensure that your founding documents 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 chosen name is available.
Reserving the Name: Use the SEC electronic system to reserve your name. Make sure the name contains terms like "Foundation" or "Inc." as mandated by law.
Minimum Capital Requirement: For recognized foundations in the Philippines, a starting fund of one million pesos is standardly required to be deposited in a bank.
Documentation Requirements
To proceed, you will need the following materials:
Articles of Incorporation: This file details the names of how to start a foundation philippines the incorporators, the organization's goal, and the principal office address.
Operating Rules: These rules dictate the internal operations of the foundation, including things like how board meetings are held and how leaders are elected.
Treasurer’s Affidavit: A legal document verifying that the minimum funds have been deposited.
4. Obtaining a Tax Identification Number (TIN)
Upon obtaining your SEC certificate, the how to start a foundation philippines 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 apply for a Tax Identification Number (TIN), set up its accounting records, and how to start a foundation philippines apply for tax-exempt status.
Note that non-profit status does not immediately mean you are tax-free. You must specifically apply for a tax-exempt ruling from the BIR to avoid income tax on contributions.
5. Local Permits and DSWD Accreditation
The new entity must likewise obtain a Mayor’s Permit or Business Permit from the municipality where your office is located.
Additionally, if your foundation offers social welfare services, you must seek accreditation from the Department of how to start a foundation philippines Social Welfare and Development (DSWD). This accreditation is essential for trust and allows you to conduct public solicitations formally.
Conclusion
Understanding how to establish a non-profit in the Philippines is a detailed process, but it sets the stage for social progress. By following these steps, you guarantee your foundation is formally recognized and ready to serve the community.