Establishing a non-profit organization or a foundation is a significant step toward helping the community in the Philippines. Regardless, the process necessitates a clear understanding of the administrative steps set by the Securities and Exchange Commission (SEC) and other governing agencies. This article explains exactly how you can register a non-profit in the country.
Step 1: Establishing Your Purpose
Before beginning the paperwork, you must determine the core purpose of your foundation. Will you be addressing poverty alleviation?
In the Philippines, foundations are generally classified as non-stock, non-profit corporations. To qualify as a foundation, your entity must have a specific fund to fund its projects. Having a solid mission helps ensure that your bylaws reflect your long-term intentions.
Step 2: Securing Your Name and Legal Status
The primary hurdle is applying with the Securities and Exchange Commission (SEC). The founders need to confirm that your proposed name is not already taken.
Reserving the Name: Use the SEC electronic system to hold your name. Make sure the name contains terms like "Foundation" or "Inc." as stipulated by law.
Initial Funding: For recognized foundations in the Philippines, a starting fund of one million pesos is standardly required to be held in a bank.
Step 3: Drafting Your Paperwork
To proceed, you must prepare the how to start a foundation philippines following records:
Articles of Incorporation: This document lists the names of the incorporators, the organization's goal, and the primary location.
Operating Rules: These guidelines govern the internal operations of the foundation, including how board meetings are conducted and how leaders are elected.
Financial Certification: A sworn statement confirming that the required 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 visiting the Bureau of Internal Revenue (BIR). Your foundation must secure how to start a foundation philippines a Tax Identification Number (TIN), set up its accounting records, and apply for tax-exempt status.
Keep in mind that non-profit status does not immediately mean you are exempt from all taxes. You must actively seek for a tax-exempt ruling from the BIR to be cleared from income tax on donations how to start a foundation philippines and grants.
Step 5: Local Governance and Social Welfare
Your foundation must likewise obtain a Mayor’s Permit or Business Permit from the Local Government Unit (LGU) where your headquarters resides.
Additionally, if your foundation provides how to start a foundation philippines social welfare activities, you must register with the Department of Social Welfare and Development (DSWD). This step is essential for trust and allows you to how to start a foundation philippines perform fundraising activities formally.
Final Thoughts
Mastering how to establish a non-profit in the Philippines is a detailed process, but it creates the foundation for meaningful impact. By completing these requirements, you guarantee your foundation is legally compliant and prepared to help the Filipino people.