Creating a non-profit organization or a foundation is a noble endeavor toward driving social change in the Philippines. Nevertheless, the process requires 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.
Step 1: Establishing Your Purpose
Before beginning the paperwork, you must clearly define the primary mission of your foundation. Are you focusing on poverty alleviation?
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 guarantees that your articles of incorporation reflect your long-term aims.
The SEC Registration Process
The first legal step is filing with the Securities and Exchange Commission (SEC). The founders need to confirm that your desired name is unique.
Reserving the Name: Use the SEC electronic system to hold your name. Ensure it includes terms like "Foundation" or "Inc." as mandated by law.
Initial Funding: For recognized foundations in the Philippines, a base capital of one million pesos is usually required to be deposited in a how to start a foundation philippines bank.
Step 3: Drafting Your Paperwork
To complete the registration, you have to compile the following materials:
Founding Charter: This file lists the names of the incorporators, the purpose of the foundation, and the principal office address.
Bylaws: These rules govern the management of the foundation, such as how board meetings are held and how officers are elected.
Treasurer’s Affidavit: A legal document verifying that the initial funds have been deposited.
4. Obtaining a Tax Identification Number (TIN)
Once how to start a foundation philippines you have your SEC certificate, the next crucial step in how to start a foundation Philippines is visiting the Bureau of Internal Revenue (BIR). Your how to start a foundation philippines foundation must apply for a Tax Identification Number (TIN), register its books of accounts, and seek tax-exempt status.
Remember that non-profit status does not immediately how to start a foundation philippines mean you are exempt from all taxes. You must specifically apply for a Certificate of Tax Exemption from the BIR to avoid income tax on funding.
Final Compliance Steps
The organization must likewise obtain how to start a foundation philippines a Mayor’s Permit or Business Permit from the Local Government Unit (LGU) where your office is located.
Moreover, if your foundation offers social welfare programs, you should seek accreditation from the Department of Social Welfare and Development (DSWD). This step is essential for credibility and allows you to manage public solicitations lawfully.
Conclusion
Mastering how to establish a non-profit in the Philippines is a detailed process, but it paves the way for social progress. By completing these requirements, you guarantee your foundation is legally compliant and equipped to assist the community.