Launching a non-profit organization or a foundation is a significant step toward driving social change in the Philippines. Regardless, the process necessitates a clear understanding of the administrative steps set by the Securities and Exchange Commission (SEC) and other relevant agencies. This article outlines 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 healthcare?
In the local context, foundations are typically classified as non-stock, non-profit corporations. To be recognized as a foundation, your group must have a specific fund to sustain its projects. Defining your vision early helps ensure that your bylaws align with your long-term aims.
Step 2: Securing Your Name and Legal Status
The initial formal requirement is registering with the Securities and Exchange Commission (SEC). It is necessary to verify that your proposed name is available.
Name Reservation: Use the SEC electronic system to reserve your name. Ensure it includes terms like "Foundation" or "Inc." as mandated by law.
Initial Funding: For recognized foundations in the Philippines, a base capital of one million pesos is standardly required to be maintained in a bank.
3. Preparing Essential Documents
To proceed, you must prepare the following records:
Articles of Incorporation: This document lists the names of the incorporators, the organization's goal, and the primary how to start a foundation philippines location.
Bylaws: These rules govern the internal operations of the foundation, including how board meetings are held and how officers are elected.
Treasurer’s Affidavit: A legal how to start a foundation philippines document stating that the initial funds have been received.
4. Obtaining a Tax Identification Number (TIN)
Once you have your SEC certificate, the next important step in the foundation setup process is registering with the Bureau of Internal Revenue (BIR). The organization how to start a foundation philippines must obtain a Tax Identification Number (TIN), set up its accounting records, and seek tax-exempt status.
Keep in mind that being a non-profit does not automatically mean you are exempt from all taxes. You must specifically apply for a tax-exempt ruling from the BIR to avoid income tax on funding.
Step 5: Local Governance and Social Welfare
The new entity must likewise obtain a Mayor’s Permit or Business Permit from the city hall where your office is located.
Additionally, if your foundation delivers social welfare programs, you must register with the Department of Social Welfare and Development (DSWD). This accreditation is critical for trust and allows you to manage donation drives formally.
Final Thoughts
Understanding how to start a foundation Philippines is a detailed process, but it creates the foundation for lasting change. By adhering to these regulations, you ensure your how to start a foundation philippines foundation how to start a foundation philippines is formally recognized and equipped to assist the community.