Launching a non-profit organization or a foundation is a noble endeavor toward helping the community in the Philippines. Nevertheless, the process demands a clear understanding of the administrative steps set by the Securities and Exchange Commission (SEC) and other governing 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 clearly define the core purpose of your foundation. Are you focusing on education?
In the local context, foundations are typically classified as non-stock, non-profit corporations. To qualify as a foundation, your organization must have a particular fund to support its projects. Setting a clear goal ensures that your articles of incorporation match your long-term aims.
Step 2: Securing Your Name and Legal Status
The first legal step is applying with the Securities and Exchange Commission (SEC). The founders need to verify that your proposed 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 base capital of PHP 1,000,000 is typically required to be held in a bank.
Step 3: Drafting Your Paperwork
To move forward, you must prepare the following documents:
Founding Charter: This document outlines the founders' identities, the purpose of the foundation, and the primary location.
Bylaws: These regulations govern the daily activities of the foundation, how to start a foundation philippines such as how board meetings are conducted and how officers are elected.
Financial Certification: A sworn statement how to start a foundation philippines confirming that the initial funds have been contributed.
Taxation and the BIR
Once you have your SEC certificate, how to start a foundation philippines the next important step in how to start a foundation Philippines is applying to the Bureau of Internal Revenue (BIR). Your foundation must obtain a Tax Identification Number (TIN), register its books of accounts, and request tax-exempt status.
Remember that being a non-profit does not instantly mean you are exempt from all taxes. You must actively seek for a Certificate of Tax Exemption from the BIR to be cleared from income tax on funding.
Step 5: Local Governance and Social Welfare
Your foundation must also get a Mayor’s Permit or Business Permit from the Local Government Unit (LGU) where your headquarters resides.
Moreover, if your foundation provides social welfare programs, you ought to register with the Department of Social Welfare and Development (DSWD). This step is how to start a foundation philippines vital for legitimacy and allows you to manage fundraising activities lawfully.
Final Thoughts
Mastering how to start a foundation Philippines is a rigorous process, but it creates the foundation for meaningful impact. By completing these requirements, you help ensure your foundation is legally how to start a foundation philippines compliant and prepared to help the public.