Creating a non-profit organization or a foundation is a noble endeavor toward driving social change in the Philippines. Regardless, the process demands a clear understanding of the administrative steps 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
Prior to starting the paperwork, you must clearly define the main objective of your foundation. Is your goal related to healthcare?
In the local context, foundations are usually classified as non-stock, non-profit corporations. To qualify as a foundation, your entity must have a particular fund to fund its projects. Defining your vision early guarantees that your articles of incorporation reflect your long-term intentions.
The SEC Registration Process
The initial formal requirement is filing with the Securities and Exchange Commission (SEC). It is necessary to confirm that your proposed name is not already taken.
Reserving the Name: Use the SEC electronic system to reserve your name. Ensure it includes terms like "Foundation" or "Inc." as required by law.
Minimum Capital Requirement: For registered foundations how to start a foundation philippines in the Philippines, a minimum initial contribution of PHP 1,000,000 is usually required to be deposited in a bank.
Step 3: Drafting Your Paperwork
To proceed, you must prepare the following records:
Articles of Incorporation: This how to start a foundation philippines document lists the names of the incorporators, the purpose of the foundation, and the principal office address.
Bylaws: These regulations dictate the daily activities of the how to start a foundation philippines foundation, including things like how board meetings are conducted and how leaders are elected.
Treasurer’s Affidavit: A sworn statement confirming that the required funds have been received.
4. Obtaining a Tax Identification Number (TIN)
Once you have your SEC certificate, the next crucial step in the foundation setup process is applying to the Bureau of Internal Revenue (BIR). The organization must obtain a Tax Identification Number (TIN), register its books of accounts, and apply for tax-exempt status.
Remember that non-profit status does not immediately mean you are exempt from all taxes. You must specifically apply for a tax-exempt ruling from the how to start a foundation philippines BIR to minimize income tax on contributions.
Step 5: Local Governance and Social Welfare
Your foundation must likewise obtain a Mayor’s Permit or Business Permit from the city hall where your office is located.
Moreover, if your foundation delivers social welfare services, you ought to seek accreditation from the Department of Social Welfare and Development (DSWD). This accreditation is critical for legitimacy and allows you to conduct donation drives how to start a foundation philippines lawfully.
Conclusion
Mastering how to establish a non-profit in the Philippines is a detailed process, but it creates the foundation for lasting change. By following these steps, you help ensure your foundation is properly structured and ready to serve the community.