Creating a non-profit organization or a foundation is an impactful way toward helping the community in the Philippines. Regardless, the process demands a clear understanding of the legal requirements set by the Securities and Exchange Commission (SEC) and other related agencies. This article details exactly how to start a foundation Philippines.
1. Define Your Mission and Vision
Before diving into the paperwork, you must articulate the main objective of your foundation. Will you be addressing poverty alleviation?
In the local context, foundations are usually classified as non-stock, non-profit corporations. To qualify as a foundation, your organization must have a specific fund to support its projects. Having a solid mission helps ensure that your articles of incorporation align with your long-term objectives.
2. Name Reservation and SEC Registration
The first legal step is registering with the Securities and Exchange Commission (SEC). You must verify that your chosen 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 mandated by law.
Initial Funding: For registered foundations in how to start a foundation philippines the Philippines, a minimum initial contribution of PHP 1,000,000 is typically required to be held in a bank.
Step 3: Drafting Your Paperwork
To complete the registration, you must prepare the following records:
Articles of Incorporation: This document outlines the founders' identities, the organization's goal, and the primary location.
Bylaws: These rules dictate how to start a foundation philippines the daily activities of the foundation, including things like how board meetings are conducted and how leaders are elected.
Treasurer’s Affidavit: A sworn statement confirming that the minimum funds have been contributed.
Taxation and the BIR
Upon obtaining your SEC certificate, the next vital step in how to start a foundation Philippines is applying to the Bureau of Internal how to start a foundation philippines Revenue (BIR). The entity must obtain a Tax Identification Number (TIN), set up its accounting records, and apply for tax-exempt status.
Remember that non-profit status does not immediately mean you are exempt from all taxes. You must actively seek for a how to start a foundation philippines tax-exempt ruling from the BIR to avoid income tax on donations and grants.
5. Local Permits and DSWD Accreditation
The organization must likewise secure a Mayor’s Permit or Business Permit from the city hall where your office is located.
Additionally, if your foundation provides social welfare activities, you should seek accreditation from the Department of Social Welfare and Development (DSWD). DSWD registration is vital for trust and allows you to conduct donation drives formally.
Conclusion
Mastering how to establish a non-profit in the Philippines is how to start a foundation philippines a detailed process, but it creates the foundation for lasting change. By following these steps, you help ensure your foundation is properly structured and ready to serve the public.