Creating a non-profit organization or a foundation is a noble endeavor toward addressing societal issues in the Philippines. However, the process demands a clear understanding of the legal requirements set by the Securities and Exchange Commission (SEC) and other relevant agencies. This article details exactly the process of starting a foundation in the Philippines.
1. Define Your Mission and Vision
Prior to starting the paperwork, you must determine the primary mission of your foundation. Are you focusing on healthcare?
In the local context, foundations are usually classified as non-stock, non-profit corporations. To be recognized 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 reflect your long-term intentions.
The SEC Registration Process
The primary hurdle is applying with the Securities and Exchange Commission (SEC). You must verify that your desired name is available.
Name Reservation: Use the SEC online portal to reserve your name. Ensure it includes terms like "Foundation" or "Inc." as mandated by law.
Minimum Capital Requirement: For registered foundations in the Philippines, a starting fund of PHP 1,000,000 is standardly required to be held in a bank.
Step 3: Drafting Your Paperwork
To proceed, you must prepare the following records:
Articles of Incorporation: This document lists the names of the incorporators, the purpose of the foundation, and the principal office address.
Operating Rules: how to start a foundation philippines These regulations dictate the daily activities of the foundation, such as how board meetings are held and how officers are elected.
Treasurer’s Affidavit: A sworn statement confirming that the minimum funds have been how to start a foundation philippines contributed.
Taxation and the BIR
Upon obtaining your SEC certificate, the next vital step in how to start a foundation Philippines is visiting the Bureau of Internal Revenue (BIR). Your foundation must secure a how to start a foundation philippines Tax Identification Number (TIN), set up its accounting records, and request tax-exempt status.
Keep in mind that how to start a foundation philippines being a non-profit does not instantly mean you are tax-free. You must specifically apply for a Certificate of Tax Exemption from the BIR to minimize income tax on contributions.
Step 5: Local Governance and Social Welfare
Your foundation must likewise obtain a Mayor’s Permit or Business Permit from the city hall where your office is located.
Moreover, if your foundation delivers social welfare services, you ought to register with the Department of Social Welfare and Development (DSWD). This accreditation is critical for credibility and allows you to manage public solicitations legally.
Summary
Understanding how to start a foundation Philippines is a thorough process, but it paves the way for social progress. By completing these requirements, how to start a foundation philippines you ensure your foundation is formally recognized and prepared to help the Filipino people.