Launching a non-profit organization or a foundation is a significant step toward driving social change in the Philippines. Regardless, the process necessitates a clear understanding of the legal requirements set by the Securities and Exchange Commission (SEC) and other related agencies. This article explains exactly how to start a foundation Philippines.
1. Define Your Mission and Vision
Before beginning the paperwork, you must articulate the core purpose of your foundation. Will you be addressing healthcare?
In the Philippines, foundations are typically classified as non-stock, non-profit corporations. To qualify as a foundation, your group must have a particular fund to support its projects. Having a solid mission guarantees that your articles of incorporation match your long-term objectives.
Step 2: Securing Your Name and Legal Status
The primary hurdle is filing with the Securities and Exchange Commission (SEC). The founders need to check that your chosen name is not already taken.
Reserving the Name: Use the SEC electronic system to reserve 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 typically required to be maintained in a bank.
3. Preparing Essential Documents
To complete the registration, you have to compile the following documents:
Articles of Incorporation: This document details the founders' identities, the purpose of the foundation, and the principal office address.
Operating Rules: These rules govern the management of the foundation, such as how board meetings are conducted and how leaders are elected.
Treasurer’s Affidavit: A sworn how to start a foundation philippines statement verifying that the minimum funds have been received.
Step 4: Registering with the BIR
Once how to start a foundation philippines you have your SEC certificate, the how to start a foundation philippines next vital step in the foundation setup process is visiting the Bureau of Internal Revenue (BIR). The organization must secure a Tax Identification Number (TIN), register its books of accounts, and seek tax-exempt status.
Keep in mind that being a non-profit does not immediately how to start a foundation philippines mean you are tax-free. You must actively seek for a tax-exempt ruling from the BIR to avoid income tax on contributions.
5. Local Permits and DSWD Accreditation
Your foundation must likewise get a Mayor’s Permit or Business Permit from the municipality where your headquarters resides.
Furthermore, if your foundation provides social welfare services, you should register with the Department of Social Welfare and Development (DSWD). This step is essential for legitimacy and allows you to perform public solicitations legally.
Summary
Understanding how to start a foundation Philippines is a detailed process, but it creates the foundation for social progress. By completing these requirements, you guarantee how to start a foundation philippines your foundation is legally compliant and ready to serve the public.