Launching a non-profit organization or a foundation is a significant step toward addressing societal issues in the Philippines. Nevertheless, the process requires a clear understanding of the administrative steps set by the Securities and Exchange Commission (SEC) and other relevant agencies. This article explains exactly how to start a foundation Philippines.
The First Step: Identifying Your Goal
Prior to starting the paperwork, you must determine the main objective 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 entity must have a particular fund to sustain its projects. Setting a clear goal helps ensure that your founding documents align with your long-term intentions.
Step 2: Securing Your Name and Legal Status
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 reserve your name. Ensure it includes terms like "Foundation" or "Inc." as stipulated by law.
Initial Funding: For registered foundations in the Philippines, a starting fund of one million pesos is typically required to be deposited in a bank.
Step 3: Drafting Your Paperwork
To proceed, you have to compile the following materials:
Articles of Incorporation: This document details the founders' identities, the organization's goal, and the primary location.
Operating Rules: These regulations govern the internal operations of the foundation, including how board meetings are held and how officers are elected.
Financial Certification: how to start a foundation philippines A legal document verifying that the minimum funds have been contributed.
4. Obtaining a Tax Identification Number (TIN)
Once 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 foundation must apply for a Tax Identification Number (TIN), register its books of accounts, and apply for tax-exempt status.
Keep in mind that being a non-profit does not automatically mean you are exempt from all taxes. You must specifically apply for a tax-exempt ruling from the BIR to minimize how to start a foundation philippines income tax on funding.
5. Local Permits and DSWD Accreditation
The organization must likewise get a Mayor’s Permit or Business Permit from the city hall where your office is located.
Furthermore, if your foundation provides how to start a foundation philippines social welfare activities, you ought to seek accreditation from the Department of Social Welfare and Development (DSWD). DSWD registration is vital for credibility and allows how to start a foundation philippines you to manage donation drives lawfully.
Conclusion
Learning how to establish a non-profit in the Philippines is a thorough process, but it sets the stage for meaningful impact. By following these steps, you help ensure your foundation is formally recognized and prepared to how to start a foundation philippines help the Filipino people.