“Giving is not just about making a donation—it’s about making a difference.” This powerful sentiment drives many Filipinos to establish foundations, creating lasting impact through organized philanthropy. But the process can seem overwhelming. This guide will walk you through how to start a foundation in the Philippines, breaking it down into actionable steps that simplify the journey.
Why Foundations Matter
Foundations are unique non-stock, non-profit organizations dedicated to charitable, educational, cultural, and social welfare initiatives. Unlike other non-profits, foundations often have substantial financial backing and the capacity to provide grants to other organizations. By learning how to start a foundation in the Philippines, you can transform your vision into a structured entity capable of driving meaningful change.
Step-by-Step Guide: How to Start a Foundation in the Philippines
1. Understand the Legal Framework
Starting a foundation involves strict legal requirements:
- Minimum Paid-Up Capital: Foundations must have at least ₱1,000,000 deposited in a corporate bank account.
- Corporate Name: Your foundation’s name must include “Foundation” for legal distinction.
- Purpose: Clearly define your mission in the Articles of Incorporation, ensuring it aligns with altruistic goals.
2. Prepare Essential Documents
Gather and notarize the following:
- Articles of Incorporation and By-laws
- Certification of Bank Deposit (₱1,000,000 minimum)
- Treasurer’s Affidavit
- Joint Affidavit of two incorporators
- Name Verification Slip from the SEC.
3. Register with the Securities and Exchange Commission (SEC)
File all required documents with the SEC to formally incorporate your foundation as a non-stock, non-profit corporation. This step is crucial for legal recognition.
4. Obtain Additional Registrations
After SEC registration:
- Register with the Bureau of Internal Revenue (BIR) for tax identification.
- Secure permits from local government units (Barangay and City Hall).
- Depending on your focus, register with relevant agencies such as the Department of Social Welfare and Development (DSWD).
Key Considerations: Foundation vs Non-Profit Organization
If you’re unsure whether a foundation is right for you, consider its differences from other non-profits. Foundations require higher capital (₱1,000,000) and often provide grants, while non-profits have lower financial requirements and rely heavily on volunteers. Learn more about how to register a non profit organization in the Philippines .
Challenges and Rewards
Starting a foundation requires significant effort but offers immense rewards:
- Tax Benefits: Accredited foundations enjoy exemptions from income tax and donor’s tax.
- Credibility: Registration builds trust among donors and stakeholders.
- Impact: Foundations can fund large-scale initiatives that transform communities.
Establishing a foundation is more than just fulfilling legal requirements—it’s about creating lasting change. By following this guide on how to start a foundation in the Philippines, you can turn your vision into reality while navigating legal complexities with confidence.
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