Starting a foundation in the Philippines is a powerful way to create lasting social impact. Whether your passion is education, health, environment, or social welfare, a foundation can be your vehicle for meaningful change. But how do you turn this vision into reality? Let’s dive into the essential steps on how to start a foundation Philippines, ensuring you navigate the process with confidence and clarity.
What Is a Foundation in the Philippines?
A foundation in the Philippines is a non-stock, non-profit corporation established primarily for charitable, educational, religious, scientific, or cultural purposes. Unlike profit-driven corporations, foundations must ensure that none of their earnings benefit private individuals. Instead, all resources are dedicated to advancing their mission.
Step-by-Step Guide: How to Start a Foundation Philippines
1. Define Your Mission and Purpose
Before anything else, clarify your foundation’s mission. What social need will you address? A clear, concise mission statement shapes your foundation’s identity and guides all future decisions. This step is crucial—your mission will attract supporters, trustees, and beneficiaries who share your vision.
2. Choose Your Legal Structure
In the Philippines, foundations are incorporated as non-stock, non-profit corporations. This structure provides legal personality and protection for your trustees while ensuring compliance with Philippine laws.
3. Prepare the Articles of Incorporation and By-Laws
These documents are the backbone of your foundation’s legal existence.
- Articles of Incorporation must include:
- The word “Foundation” in the corporate name.
- The foundation’s purpose aligned with charitable or social welfare goals.
- Names, nationalities, and addresses of at least five trustees.
- The amount of capital, which must be at least PHP 1,000,000, contributed in cash or property.
- By-Laws should detail:
- Governance structure, including trustee elections and meetings.
- Financial management policies.
- Operational procedures to ensure transparency and accountability.
4. Secure the Requirements for SEC Registration of Non Profit Organization
To officially register your foundation, you need to file specific documents with the Securities and Exchange Commission (SEC):
- Name Verification Slip
- Articles of Incorporation and By-Laws
- Treasurer’s Affidavit confirming capital contributions
- Bank certificate showing the deposit of the required capital (PHP 1,000,000)
- Joint affidavit of at least five incorporators/trustees
Meeting these SEC registration requirements for non profit organizations is essential to gain legal personality and operate legitimately.
5. Register with the SEC
Submit all required documents to the SEC. Once approved, your foundation is officially recognized under Philippine law. This step is critical because it grants your foundation the legal capacity to enter contracts, own property, and receive donations.
6. Apply for Tax Exemption with the Bureau of Internal Revenue (BIR)
Foundations engaged in charitable activities may apply for tax-exempt status. This involves submitting your SEC registration papers, audited financial statements, and other supporting documents to the BIR. Securing tax exemption maximizes your resources for your foundation’s mission.
7. Comply with Ongoing Reporting and Governance
After registration, your foundation must file annual reports with the SEC, including the General Information Sheet (GIS) and audited financial statements. Regular meetings and transparent record-keeping are mandatory to maintain good standing and public trust.
How to Register a Non Profit Organization in the Philippines: Summary
- Reserve a unique foundation name with the SEC.
- Draft and notarize Articles of Incorporation and By-Laws.
- Ensure a minimum capital of PHP 1,000,000 is deposited and documented.
- File all required documents with the SEC.
- Obtain SEC approval and secure your foundation’s legal status.
- Apply for tax exemption with the BIR.
- Maintain compliance with annual reporting and governance rules.
Final Thoughts
If you’re serious about making a difference, understanding how to start a foundation Philippines is your first step. It’s a process that demands careful planning, legal compliance, and ongoing dedication. But the rewards? Immense. You’ll build a legacy of positive change that benefits communities for generations.
For a detailed, step-by-step walkthrough on this journey, check out our comprehensive guide on how to start a foundation Philippines.
Take the leap today—your foundation’s impact starts with the first step!
By LAWPH – Your trusted partner in legal guidance for foundations and non-profit organizations in the Philippines.