The Power of Purpose: A Guide for PH Non-Profit Organizations

In the Philippines, non-stock corporations weave a crucial thread. They embody diverse purposes ranging from religious and charitable to professional, cultural, and beyond. These non-profit organizations play a pivotal role in societal well-being.  And for those of you who are navigating the intricate landscape of non-profit ventures, a roadmap on how to start and register one is essential. Here’s your guide, demystifying the process and unleashing the potential for positive impact.

Navigating the Non-Profit Landscape

Philippine non-profit organizations enjoy the privilege of income tax exemptions on gifts, grants, and donations, provided they align with specific criteria. These entities, often formed for religious, scientific, charitable, or social welfare purposes, must ensure that their net income or assets don’t benefit individuals associated with the organization.

The allure of tax-deductible donations beckons for certified donee institutions. With approval from the Bureau of Internal Revenue (BIR), these organizations can unlock the door to a world of philanthropic support.

Setting Sail: How to Register

Embarking on the journey of non-profit endeavors requires meticulous planning. To initiate the registration process, you must do the following: 

  1. Gather a minimum of 5 incorporators, a majority of whom must be Philippine residents
  2. Provide the address of the incorporators
  3. Furnish their individual TIN (Tax Identification Number) from the BIR . 
  4. Specify the exact details of their contributions 

Documenting the Dream

With the initial prerequisites in hand, your next stop is the Securities and Exchange Commission (SEC). Navigate the bureaucratic seas armed with the following documentation:

  • Name Verification Slip: Secure this by manually reserving your desired company name with the SEC, subject to minimal fees. The latter is P40 for every 30 days up to a maximum of 90 days and subject to renewal or registration through the SEC Register.
  • By-laws and Articles of Incorporation: Craft the foundational documents that define your organization’s purpose and structure.
  • Joint Affidavit: If a change of company name is on the horizon, secure an affidavit from two incorporators.
  • Membership Lists: Ensure a certified list of members is available, either within the Articles of Incorporation or separately.
  • Contributor Records: Maintain a list of donors and contributors, certified by the treasurer.

Tailored Requirements for Certain Groups

Tailor your documentation based on your organization’s nature:

  • For Religious Corporations: An affidavit of affirmation from the chief priest or equivalent.
  • For Federations: A certified list of all member associations.
  • For Condominium Corporations: Include the Master Deed and primary entry from the Register of Deeds.
  • For Foundations: Supplement your submission with a notarized certificate of bank deposit of at least P1M.

Beyond the Horizon: Additional Processes

Your journey doesn’t conclude with SEC approval. Navigate the waters of tax compliance with registration and securing a TIN assigned by the SEC. To unlock tax exemptions, obtain a BIR ruling from the Revenue District Office.

 

Extend your reach by applying for local business permits and licenses. As your organization takes shape, register as an employer with the Social Security System, Philippine Health Insurance, and Home Development Mutual Fund.

Charting a Course for Impact

In the realm of non-profit organizations in the Philippines, registration is not merely a bureaucratic process—it’s a voyage toward making a meaningful difference. Armed with this guide, aspiring changemakers can navigate the complexities, set sail confidently, and chart a course toward a future where purpose reigns supreme.

 

Are you navigating non-profit compliance in the Philippines? Our expert accounting team has got your back! From permits to employer registration, we’ve got the expertise you need to make them all happen. Elevate your philanthropy game – call our team of Pasig accounting and bookkeeping pros now! Explore our comprehensive business registration services and ensure seamless BIR tax compliance for your non-profit venture.

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