Launching a non-profit organization or a foundation is a significant step toward driving social change in the Philippines. However, the process necessitates a clear understanding of the administrative steps 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.
Step 1: Establishing Your Purpose
Before diving into the paperwork, you must determine the primary mission of your foundation. Will you be addressing healthcare?
In the Philippines, foundations are typically classified as non-stock, non-profit corporations. To qualify as a foundation, your entity must have a specific fund to sustain its projects. Having a solid mission guarantees that your bylaws match your long-term intentions.
The SEC Registration Process
The initial formal requirement is applying with the Securities and Exchange Commission (SEC). You must confirm that your chosen name is available.
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.
Minimum Capital Requirement: For recognized foundations in the Philippines, a starting fund of one million pesos is typically required to how to start a foundation philippines be deposited in a bank.
Documentation Requirements
To move forward, you have to compile the following documents:
Articles of how to start a foundation philippines Incorporation: This file lists the names of the incorporators, the organization's goal, and the primary location.
Operating Rules: These rules manage the daily activities of the foundation, including things like how board meetings are held and how leaders are elected.
Financial Certification: A sworn statement confirming that the initial funds have been contributed.
4. Obtaining a Tax Identification Number (TIN)
After receiving your SEC certificate, the how to start a foundation philippines next vital step in the foundation setup process is applying to the Bureau of Internal Revenue (BIR). Your foundation must apply for a Tax Identification Number (TIN), register its books of accounts, and request tax-exempt status.
Note that non-profit status does not instantly mean you are tax-free. You must specifically apply for a Certificate of Tax Exemption from the BIR to avoid income tax on donations and grants.
Step 5: Local Governance and Social Welfare
The organization must likewise get a Mayor’s Permit or Business Permit from the municipality where your headquarters resides.
Moreover, if your foundation offers how to start a foundation philippines social welfare activities, you must seek accreditation from the Department of Social Welfare and Development (DSWD). DSWD registration is essential for legitimacy and allows you to perform public solicitations lawfully.
Conclusion
Learning how to start a foundation Philippines is a detailed process, how to start a foundation philippines but it creates the foundation for social progress. By completing these requirements, you help ensure your foundation is formally recognized and equipped to assist the community.