Launching a non-profit organization or a foundation is a noble endeavor toward helping the community in the Philippines. However, the process requires a clear understanding of the administrative steps set by the Securities and Exchange Commission (SEC) and other relevant agencies. This article explains exactly how to start a foundation Philippines.
1. Define Your Mission and Vision
Before beginning the paperwork, you must articulate the core purpose of your foundation. Is your goal related to environmental conservation?
In the Philippines, foundations are typically classified as non-stock, non-profit corporations. To qualify as a foundation, your entity must have a dedicated fund to support its projects. Defining your vision early guarantees that your articles of incorporation match your long-term objectives.
Step 2: Securing Your Name and Legal Status
The first legal step is filing with the Securities and Exchange Commission (SEC). The founders need to verify that your chosen name is not already taken.
Name Reservation: Use the SEC electronic system to hold your name. Ensure it includes terms like "Foundation" or "Inc." as stipulated by law.
Minimum Capital Requirement: For registered foundations in the Philippines, a starting fund of one million pesos is usually required to be deposited in a bank.
Step 3: Drafting Your Paperwork
To complete the registration, you will need the following documents:
Articles of Incorporation: This file outlines the founders' identities, the organization's goal, and the principal office address.
Bylaws: These rules manage the management of the foundation, including things like how board meetings are conducted and how leaders are elected.
Financial Certification: how to start a foundation philippines A sworn statement confirming that the required funds have been deposited.
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 entity must how to start a foundation philippines secure a Tax Identification Number (TIN), register its books of accounts, and apply for tax-exempt status.
Keep in mind that non-profit status does not instantly mean you are tax-free. You must actively seek for a tax-exempt ruling from the BIR to how to start a foundation philippines minimize income tax on contributions.
Final Compliance Steps
The organization must likewise obtain a Mayor’s Permit or Business Permit from the city hall where your office how to start a foundation philippines is located.
Furthermore, if your foundation provides social welfare activities, you ought to register with the Department of Social Welfare and Development (DSWD). This accreditation is vital for trust and allows you to manage public solicitations lawfully.
Conclusion
Mastering how to establish a non-profit in the Philippines is a rigorous process, but it paves the way for meaningful how to start a foundation philippines impact. By following these steps, you help ensure your foundation is properly structured and ready to serve the Filipino people.