Launching a non-profit organization or a foundation is a noble endeavor toward driving social change in the Philippines. Nevertheless, the process necessitates a clear understanding of the administrative steps set by the Securities and Exchange Commission (SEC) and other governing agencies. This article details exactly the process of starting a foundation in the Philippines.
1. Define Your Mission and Vision
Before beginning the paperwork, you must clearly define the primary mission of your foundation. Are you focusing on environmental conservation?
In the Philippines, foundations are typically classified as non-stock, non-profit corporations. To be recognized as a foundation, your organization must have a specific fund to fund its projects. Defining your vision early helps ensure that your bylaws match your long-term intentions.
Step 2: Securing Your Name and Legal Status
The primary hurdle is registering with the Securities and Exchange Commission (SEC). It is necessary to confirm that your desired name is not already taken.
Name Reservation: Use the SEC electronic system to hold your name. Make sure the name contains terms like "Foundation" or "Inc." as required by law.
Initial Funding: For registered foundations in the Philippines, a minimum initial contribution of how to start a foundation philippines one million pesos is standardly required to be deposited in a bank.
3. Preparing Essential Documents
To move forward, you must prepare the following documents:
Founding Charter: This document lists the founders' identities, the purpose of the foundation, and the primary location.
Bylaws: These regulations manage the internal operations of the foundation, such as how board meetings are held and how to start a foundation philippines how officers are elected.
Treasurer’s Affidavit: A legal how to start a foundation philippines document stating that the minimum funds have been deposited.
4. Obtaining a Tax Identification Number (TIN)
Upon obtaining your SEC how to start a foundation philippines certificate, the next important step in how to start a foundation Philippines is visiting the Bureau of Internal Revenue (BIR). The entity must apply for a Tax Identification Number (TIN), set up its accounting records, and apply for tax-exempt status.
Note that non-profit status does not immediately mean you are tax-free. You must formally petition for a tax-exempt ruling from the BIR to minimize income tax on funding.
5. Local Permits and DSWD Accreditation
The new entity must likewise get a Mayor’s Permit or Business Permit from the Local Government Unit (LGU) where your office is located.
Additionally, if your foundation provides social welfare activities, you ought to seek accreditation from the Department of Social Welfare and Development (DSWD). This accreditation is vital for credibility and allows you to perform public solicitations formally.
Summary
Learning how to start a foundation philippines how to start a foundation Philippines is a rigorous process, but it paves the way for lasting change. By adhering to these regulations, you ensure your foundation is legally compliant and equipped to assist the community.