Launching a non-profit organization or a foundation is a significant step toward addressing societal issues in the Philippines. Nevertheless, the process requires a clear understanding of the regulatory framework set by the Securities and Exchange Commission (SEC) and other related agencies. This article outlines exactly the process of starting a foundation in the Philippines.
1. Define Your Mission and Vision
Before diving into the paperwork, you must articulate the primary mission of your foundation. Will you be addressing education?
In the Philippines, foundations are generally classified as non-stock, non-profit corporations. To be recognized as a foundation, your group must have a particular fund to fund its projects. Defining your vision early ensures that your founding documents match your long-term objectives.
2. Name Reservation and SEC Registration
The initial formal requirement is registering with the Securities and Exchange Commission (SEC). It is necessary to check that your proposed name is available.
Name Reservation: Use the SEC online portal to hold your name. Ensure it includes terms like "Foundation" or "Inc." as mandated by law.
Initial Funding: For registered foundations in the Philippines, a starting fund of PHP 1,000,000 is usually required to be maintained in a how to start a foundation philippines bank.
Step 3: Drafting Your Paperwork
To move forward, you have to compile the following records:
Founding Charter: This document lists the founders' identities, the purpose of the foundation, and the primary location.
Bylaws: These regulations manage the daily activities of the foundation, such as how board meetings are conducted and how officers are elected.
Treasurer’s Affidavit: A legal document confirming that the initial funds have been received.
Taxation and the BIR
After receiving your SEC certificate, the next vital step in the foundation setup process is registering with the Bureau of Internal Revenue (BIR). The entity must secure a Tax Identification Number (TIN), how to start a foundation philippines register its books of accounts, and request tax-exempt status.
Remember that non-profit status does not instantly mean you are exempt from all taxes. You must formally petition for a Certificate of Tax Exemption from the BIR to avoid income tax how to start a foundation philippines on donations and grants.
Final Compliance Steps
The new entity must also get a Mayor’s Permit or Business Permit from the municipality where your office is located.
Moreover, if your foundation delivers social welfare services, how to start a foundation philippines you ought to seek accreditation from the Department of Social Welfare and Development (DSWD). DSWD registration is essential for credibility and allows you to manage donation drives lawfully.
Conclusion
Mastering how to establish a non-profit in the Philippines is a rigorous process, but it creates the foundation for social progress. By completing these requirements, you guarantee your foundation is formally recognized and equipped to assist how to start a foundation philippines the community.