How to Start a Foundation in the Philippines

September 24, 2025

Foundations in the Philippines serve as essential platforms to address social challenges such as poverty alleviation, education, healthcare, and community development. For philanthropists and organizations committed to social impact, starting a foundation offers a structured, credible vehicle to mobilize resources and drive meaningful change.

However, the process involves navigating a complex legal and regulatory framework governed by agencies like the Securities and Exchange Commission (SEC), Bureau of Internal Revenue (BIR), and Department of Social Welfare and Development (DSWD). This detailed guide analyzes the essential steps, legal requirements, and best practices to successfully establish a compliant, transparent, and positioned foundation for long-term success.

Understanding What a Foundation Is and Its Structure

Before proceeding with the registration process, it is essential to clearly define the nature and structure of a foundation. In the Philippines, a foundation is a type of non-stock, non-profit corporation distinguished by its endowment focus and charitable mission. It is governed by the Revised Corporation Code of 2019 and must include “Foundation” in its registered name to comply with SEC naming conventions.

Trustees establish foundations as the governing board responsible for oversight, strategic direction, and fiduciary duties. Typically, the board comprises five to fifteen trustees whose roles are clearly outlined to prevent conflicts of interest. Governance policies, detailed in bylaws, provide the rules around board meetings, election procedures, and operational management to promote accountability and transparency.

Clearly setting the foundation’s mission, organizational roles, and governance framework is fundamental to ensuring regulatory compliance and operational integrity.

How To Register a Foundation with the Securities and Exchange Commission (SEC)

The SEC registration legally establishes the foundation as a non-stock corporation and formalizes its compliance with Philippine corporate laws. This process involves several critical steps:

Name Reservation and Verification

Initial registration requires reserving a unique foundation name through the SEC’s eSPARC online portal. The name must include “Foundation” and not conflict with existing entities.

Preparing and Filing Articles of Incorporation

The Articles of Incorporation outline the foundation’s purpose, principal office, trustee details, and the capital structure. A mandatory clause prohibits the distribution of profits to members or trustees to preserve the non-profit character.

Submitting Bylaws

Bylaws supplement the Articles by specifying governance rules, such as board meeting schedules, officer roles, and amendment procedures.

Depositing the Minimum Capital

Foundations must deposit at least ₱1,000,000 as an endowment in a bank account and provide the SEC with a notarized certificate of deposit as proof of financial capacity.

Filing Fees and Certificate of Incorporation

Upon submitting the completed documents and paying applicable fees, the SEC issues a Certificate of Incorporation, confirming the foundation’s legal recognition.

Securing Tax Exemption Status with the Bureau of Internal Revenue (BIR)

Obtaining tax-exempt status is critical for a foundation’s financial sustainability and donor appeal. The BIR grants exemptions under Section 30 of the Tax Code, provided the foundation adheres to prescribed rules regarding charitable activities and fund use.

BIR Registration and Submission Requirements

Foundations must first register with the BIR to secure a Tax Identification Number (TIN). They must then apply formally for tax exemption, submitting documents such as the SEC Certificate, Articles of Incorporation, bylaws, and financial statements.

Obtaining Qualified Non-Profit Organization Status

Further certification from the Philippine Council for NGO Certification (PCNC) enables donors to claim tax deductions for contributions, enhancing fundraising possibilities.

Annual Compliance Obligations

Maintaining exemption status requires annual filing of income tax returns, even if exempt, alongside withholding taxes on staff compensation and accurate record-keeping, subject to audits.

Meeting Additional Regulatory Requirements for Foundations

Beyond SEC and BIR registration, foundations operating in the Philippines must fulfill further agency mandates based on their activities.

DSWD Registration: Foundations engaged in social welfare must register with the Department of Social Welfare and Development, submitting operational reports and financial declarations.
PCNC Accreditation: After at least two years of operation, obtaining PCNC accreditation certifies organizational transparency and compliance, solidifying public and donor confidence.
Local Permits: Foundations must acquire business permits such as mayor’s licenses and barangay clearances from the locality where they operate.
Sector-Specific Endorsements: Educational foundations should secure endorsements from agencies like the Department of Education (DepEd), Commission on Higher Education (CHED), or Technical Education and Skills Development Authority (TESDA).

Opening a Corporate Bank Account for Financial Management

Proper financial management begins with a bank account opened under the foundation’s registered name. Presenting the SEC Certificate of Incorporation, BIR TIN, and required local documentation allows the foundation to receive donations, manage its endowment, and make operational expenditures in compliance with legal requirements.

Ongoing Compliance, Reporting, and Transparency

Foundations must comply with continuous reporting obligations to maintain trust and legitimacy. This includes:

Filing the annual General Information Sheet (GIS) and Audited Financial Statements (AFS) with the SEC.
Providing sworn statements and Certificates of Existence of Program/Activity (COEP) for foundations receiving significant government funds or public donations.
Conducting annual independent audits by certified public accountants (CPAs) to verify the use of funds consistent with charters and regulatory requirements.
Using digital filing platforms such as the SEC’s eSPARC and the BIR’s Electronic Filing and Payment System (eFPS) for efficient submission and compliance tracking.
Regularly engaging stakeholders through transparent reporting and communication builds and sustains donor and beneficiary confidence.

Why Professional Assistance Is Important in Starting a Foundation

The complex nature of Philippine foundation law and administrative procedures can overwhelm even experienced philanthropists. Professional consultants like Triple i Consulting bring in-depth knowledge, documentation expertise, and regulatory engagement skills to streamline the foundation’s establishment and compliance processes.

Triple i Consulting offers:

Expert drafting of Articles of Incorporation and bylaws aligned with legal guidelines.
Handling SEC registration and procurement of the Certificate of Incorporation.
Managing BIR registration and navigating tax exemption applications.
Facilitating DSWD registration, PCNC accreditation, and local government permits.
Providing ongoing compliance monitoring, audit support, and strategic governance advice.

By partnering with trusted experts, founders can focus on their mission while ensuring their foundation operates legally and effectively long-term.

Final Thoughts

Starting a foundation in the Philippines is a powerful means to create social impact, but it requires meticulous planning, adherence to multiple regulatory frameworks, and sustained commitment to transparency. Defining a clear mission, registering properly with the SEC and BIR, securing all necessary permits, and consistently reporting are the cornerstones of a compliant and effective foundation.

With proper guidance and professional support, philanthropic leaders can navigate the complexities and establish foundations that are legally sound, impactful, and trusted by communities and donors.

Is Assistance Available?

Yes. Triple i Consulting is ready to guide prospective foundation founders and established organizations throughout setting up, registering, and maintaining foundations in the Philippines. To schedule a consultation with our experts or learn more: