Establishing a non-profit organization or a foundation is an impactful way toward driving social change in the Philippines. However, the process demands a clear understanding of the administrative steps set by the Securities and Exchange Commission (SEC) and other related agencies. This article details exactly how to start a foundation Philippines.
Step 1: Establishing Your Purpose
Before beginning the paperwork, you must articulate the primary mission of your foundation. Are you focusing on environmental conservation?
In the local context, foundations are usually classified as non-stock, non-profit corporations. To be recognized as a foundation, your organization must have a specific fund to fund its projects. Setting a clear goal ensures that your bylaws reflect your long-term aims.
Step 2: Securing Your Name and Legal Status
The primary hurdle is applying with the Securities and Exchange Commission (SEC). It is necessary to verify that your desired name is not already taken.
Name Reservation: Use the SEC electronic system to reserve your name. Make sure the name contains terms like "Foundation" or "Inc." as required by law.
Initial Funding: For registered foundations in the Philippines, a minimum initial contribution of one million pesos is standardly required to be deposited in a bank.
Documentation Requirements
To proceed, you have to compile the following documents:
Founding Charter: This file lists the founders' identities, the organization's goal, and the primary location.
Bylaws: These regulations manage the internal operations of the foundation, such as how board meetings are held and how leaders are elected.
Financial Certification: A sworn statement stating that the how to start a foundation philippines initial funds have been received.
4. Obtaining a Tax Identification Number (TIN)
After receiving your SEC certificate, the next important step in the foundation setup process is visiting the Bureau of Internal Revenue (BIR). The organization must apply for a Tax Identification Number (TIN), set up its accounting records, and seek tax-exempt status.
Remember that being a non-profit does not immediately 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 be cleared from income tax on donations and grants.
5. Local how to start a foundation philippines Permits and DSWD Accreditation
Your foundation must also get a Mayor’s Permit or Business Permit from the Local Government how to start a foundation philippines Unit (LGU) where your office is located.
Additionally, if your foundation offers social welfare services, you must register with the Department of Social Welfare and Development (DSWD). DSWD registration is critical for trust and allows you to conduct public solicitations legally.
Conclusion
Understanding how to establish a non-profit in the Philippines is a thorough process, but it sets the stage for social progress. By adhering to how to start a foundation philippines these regulations, you guarantee your foundation is properly structured and ready to serve the community.