Establishing a non-profit organization or a foundation is a significant step toward helping the community in the Philippines. Regardless, the process requires a clear understanding of the regulatory framework set by the Securities and Exchange Commission (SEC) and other related agencies. This article explains exactly the process of starting a foundation in the Philippines.
1. Define Your Mission and Vision
Before diving into the paperwork, you must articulate the primary mission of your foundation. Is your goal related to healthcare?
In the Philippines, foundations are typically classified as non-stock, non-profit corporations. To be recognized as a foundation, your entity must have a particular fund to fund its projects. Having a solid mission ensures that your bylaws reflect your long-term intentions.
Step 2: Securing Your Name and Legal Status
The initial formal requirement is filing with the Securities and Exchange Commission (SEC). It is necessary to check that your chosen name is unique.
Name Reservation: Use the SEC online portal to reserve your name. Ensure it includes terms like "Foundation" or "Inc." as required by law.
Initial Funding: For recognized foundations in the Philippines, a base capital how to start a foundation philippines of one million pesos is standardly required to be held in a bank.
Step 3: Drafting Your Paperwork
To proceed, you must prepare the following documents:
Articles of Incorporation: This document outlines the founders' identities, the organization's goal, and the principal office address.
Bylaws: These regulations dictate the management of the foundation, such as how board meetings are held and how leaders are elected.
Financial Certification: A legal document confirming that the required funds have been contributed.
Taxation and the BIR
After receiving your SEC certificate, the next vital step in how to start a foundation Philippines is applying to the Bureau of Internal Revenue (BIR). The organization must obtain a Tax Identification Number (TIN), register its books of accounts, and seek tax-exempt status.
Note that how to start a foundation philippines being a non-profit does not instantly mean you are tax-free. You must formally petition for a Certificate of Tax Exemption from the BIR to minimize income tax on contributions.
Final Compliance Steps
The new entity must also get a Mayor’s Permit or Business Permit from the city hall where your how to start a foundation philippines headquarters resides.
Additionally, if your foundation provides social welfare programs, you should seek accreditation from the Department how to start a foundation philippines of Social Welfare and Development (DSWD). This accreditation is critical for legitimacy and allows you to manage public solicitations formally.
Final Thoughts
Learning how to establish a non-profit in the Philippines is a how to start a foundation philippines detailed process, but it creates the foundation for meaningful impact. By adhering to these regulations, you ensure your foundation is properly structured and ready to serve the community.