Launching a non-profit organization or a foundation is an impactful way toward addressing societal issues in the Philippines. Regardless, the process necessitates a clear understanding of the administrative steps set by the Securities and Exchange Commission (SEC) and other related agencies. This article outlines exactly how you can register a non-profit in the country.
The First Step: Identifying Your Goal
Before beginning the paperwork, you must articulate the main objective of your foundation. Will you be addressing healthcare?
In the Philippines, foundations are usually classified as non-stock, non-profit corporations. To be recognized as a foundation, your entity must have a dedicated fund to sustain its projects. Having a solid mission guarantees that your bylaws reflect your long-term objectives.
The SEC Registration Process
The initial formal requirement is registering with the Securities and Exchange Commission (SEC). The founders need to check that your desired name is not already taken.
Name Reservation: Use the SEC online portal to hold your name. Ensure it includes terms like "Foundation" or "Inc." as stipulated by law.
Initial Funding: For registered foundations in the Philippines, a base capital of PHP how to start a foundation philippines 1,000,000 is usually required to be maintained in a bank.
Step 3: Drafting Your Paperwork
To move forward, you have to compile the following documents:
Founding Charter: This document lists the founders' identities, the purpose of the foundation, and the primary location.
Bylaws: These guidelines govern the daily activities of the how to start a foundation philippines foundation, including how board meetings are conducted and how officers are elected.
Financial Certification: A sworn statement stating that the initial funds have been contributed.
Step how to start a foundation philippines 4: Registering with the BIR
Once you have your SEC certificate, the next vital step in how to start a foundation philippines the foundation setup process is registering with the how to start a foundation philippines 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 being a non-profit does not immediately mean you are tax-free. You must specifically apply for a tax-exempt ruling from the BIR to avoid income tax on contributions.
5. Local Permits and DSWD Accreditation
The new entity must likewise secure a Mayor’s Permit or Business Permit from the city hall where your headquarters resides.
Furthermore, if your foundation delivers social welfare activities, you should seek accreditation from the Department of Social Welfare and Development (DSWD). This step is vital for legitimacy and allows you to manage fundraising activities lawfully.
Summary
Learning how to start a foundation Philippines is a thorough process, but it creates the foundation for meaningful impact. By completing these requirements, you help ensure your foundation is legally compliant and prepared to help the public.