Creating a non-profit organization or a foundation is a significant step toward addressing societal issues in the Philippines. However, the process necessitates a clear understanding of the legal requirements set by the Securities and Exchange Commission (SEC) and other governing agencies. This article outlines exactly how to start a foundation Philippines.
Step 1: Establishing Your Purpose
Before diving into the paperwork, you must clearly define the main objective of your foundation. Will you be addressing education?
In the local context, foundations are generally classified as non-stock, non-profit corporations. To be recognized as a foundation, your group must have a dedicated fund to sustain its projects. Setting a clear goal guarantees that your bylaws match your long-term aims.
Step 2: Securing Your Name and Legal Status
The primary hurdle is registering with the Securities and Exchange Commission (SEC). You must check that your chosen name is not already taken.
Reserving the Name: Use the SEC electronic system to hold your name. Make sure the name contains 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 how to start a foundation philippines usually required to be maintained in a bank.
3. Preparing Essential Documents
To move forward, you have to compile the following records:
Articles of Incorporation: This document lists the founders' identities, the organization's goal, and the principal office address.
Bylaws: These guidelines govern the internal operations of the foundation, including things like how board meetings are held and how leaders are elected.
Treasurer’s Affidavit: A sworn statement stating how to start a foundation philippines that the initial funds have been received.
4. Obtaining a Tax Identification Number (TIN)
Upon obtaining your SEC certificate, the next vital step in how to start a how to start a foundation philippines foundation Philippines is visiting the Bureau of Internal Revenue (BIR). The entity must apply for a Tax Identification Number (TIN), register its books of accounts, and seek tax-exempt status.
Note that being a non-profit does not instantly mean you are exempt from all taxes. You must formally petition for how to start a foundation philippines a tax-exempt ruling from the BIR to be cleared from income tax on donations and grants.
5. Local Permits and DSWD Accreditation
The organization must also how to start a foundation philippines obtain a Mayor’s Permit or Business Permit from the city hall where your office is located.
Furthermore, if your foundation provides social welfare activities, you should register with the Department of Social Welfare and Development (DSWD). This accreditation is essential for trust and allows you to conduct public solicitations formally.
Conclusion
Understanding how to start a foundation Philippines is a rigorous process, but it paves the way for lasting change. By following these steps, you help ensure your foundation is legally compliant and prepared to help the community.