ManilaOpenHouse Foundation Planner

Not legal, tax or financial advice. Registration, tax exemption and accreditation depend on facts we cannot see: ask a lawyer, a CPA or the agency before you decide. Figures as of 1 November 2026. Fees, forms and thresholds change; we checked official pages where we could and labelled the rest as unverified. Nothing here is a forecast.

1. Choose a vehicle

Answer seven plain questions. We rank the legal vehicles that fit, with an international analogue and the next step.

This tool ranks the legal vehicles that could suit your goal. The nine Philippine options we compare: Foundation (non-stock, non-profit corporation with 'Foundation' in its name), Plain non-stock, non-profit corporation / association (no 'Foundation' in name), Cooperative (primary), Social-enterprise stock corporation (ordinary corporation with social mission), Trust / endowment (held by trustee or by a corporation), Fiscal sponsorship (project hosted by an existing registered, ideally donee-accredited, organisation), Religious corporation: corporation sole or religious society, TESDA-registered training centre / programme (a licence or registration an organisation obtains, usually on top of a non-stock or stock entity), DepEd-recognised private school (basic education); CHED for higher ed. Read the guide for how each works.

2. Work the checklist

SEC, BIR, LGU, DSWD, PCNC and TESDA in order. Ticks are saved on this device only.

The checklist needs JavaScript to tick items. The full list, in order:

SEC

  • Reserve the name; decide if "Foundation" is in it (adds the PHP 1,000,000 deposit rule) (document: Name verification slip)
  • Draft articles and by-laws (non-stock; no inurement; admin <= 30%; dissolution clause; trustees uncompensated) (document: Articles of Incorporation, By-laws)
  • Fund the PHP 1,000,000 deposit and obtain the notarised bank certificate (only if "Foundation" in name) (document: Certificate of deposit; willingness to allow SEC audit)
  • Register with the SEC through eSPARC (2-15 incorporators); fees range PHP 500-2,000, controlled by the eSPARC assessment (document: Certificate of Incorporation)
  • First fiscal year closes; prepare financial statements (audited if assets or liabilities > PHP 3M) (document: AFS; sworn statement of management responsibility)
  • File GIS, AFS and foundation annual forms (SS/COEP or NSPO) with the SEC; BIR annual return with CTE attached (document: GIS; AFS; NSPO forms; Annual Information Return)

BIR

  • Register with the BIR: TIN, Form 1903, Certificate of Registration, books, invoices (document: Form 1903; COR (2303); registered books/invoices)
  • Apply for the BIR Certificate of Tax Exemption (RMO 38-2019; 3-year validity; income tax only) (document: Application letter; AOI/by-laws; 3 years ITR/FS if available; programme plan)
  • BIR donee-institution recognition / Certificate of Registration as donee (2-3 months after endorsement) (document: BIR donee COR via PCNC (or DSWD route))
  • Year-3 review: renew CTE (3-year validity) and accreditation; decide property strategy (lease, buy, donated, build) (document: CTE revalidation; accreditation renewal)

LGU

  • LGU permits: barangay clearance, locational clearance, mayor's/business permit, sanitary permit (document: Barangay clearance; locational clearance; mayor's permit; sanitary permit)
  • Fire Safety Inspection Certificate (BFP, RA 9514) before occupancy (document: FSIC)
  • Dorm and kitchen clearances: sanitary, food-handler health certificates, any dorm ordinance (if lodging) (document: Sanitary permit; health certificates)

DSWD

  • DSWD registration, licensing and CRLTO for social-welfare activities (apply within 6 months of SEC certificate per DSWD MC 08 s.2025) (document: CRLTO application; PHP 2,000 fee; 7 working days on complete documents)
  • DSWD public solicitation permit before asking the public for money (PHP 500 regional / 1,000 national; 1 year) (document: Solicitation permit; report after campaign)
  • Donee accreditation: DSWD route under EO 117 s.2026 (BIR to recognise DSWD certificates); confirm which route applies before filing (document: DSWD accreditation certificate; BIR donee recognition (RMC 83-2026, secondary))

PCNC

  • Donee accreditation: PCNC route (needs latest audited FS, ITRs, BIR CTE, TESDA/DSWD certificates) (document: PCNC Forms 101-112; 3 hard-copy sets)
  • Cure window if PCNC defers (up to 6 months) or re-application after a denial (1 year) (document: Corrected documents)

TESDA

  • TESDA programme registration per programme (PHP 2,000, 5-year CTPR) if offering NC-linked training (document: Programme registration; trainer qualifications; facilities)

Tax treatment is described in general terms from the law and issuances cited; an exemption is a ruling the BIR issues to one organisation after review, never automatic.

3. Budget and funding mix

Illustrative budget: a made-up foundation with rounded costs and no inflation unless shown; your rents, wages and prices will differ.

Illustrative budget: a made-up foundation with rounded costs and no inflation unless shown; your rents, wages and prices will differ.

Illustrative default (20-bed dorm, three meals a day, two trainers, Rizal or Cavite rent): about PHP 757,423 a month or PHP 9,089,080 a year, administration about 16% of spending, against the 30% test. Adjust it with JavaScript on.

Tax treatment is described in general terms from the law and issuances cited; an exemption is a ruling the BIR issues to one organisation after review, never automatic.

4. 36-month timeline

A modelled plan, not a promise. Move the start month and the bars and dates move with it.

The 36-month plan (modelled, not a promise) in text:

  1. Months 0 to 1: Founding group agrees mission, programmes and who will be trustees (no pay for trustees)
  2. Months 1 to 2: Reserve the name; decide if "Foundation" is in it (adds the PHP 1,000,000 deposit rule)
  3. Months 1 to 3: Draft articles and by-laws (non-stock; no inurement; admin <= 30%; dissolution clause; trustees uncompensated)
  4. Months 2 to 3: Fund the PHP 1,000,000 deposit and obtain the notarised bank certificate (only if "Foundation" in name)
  5. Months 3 to 5: Register with the SEC through eSPARC (2-15 incorporators); fees range PHP 500-2,000, controlled by the eSPARC assessment
  6. Months 5 to 6: Organisational meeting: elect officers, adopt policies (conflict of interest, finance), open membership book
  7. Months 5 to 7: Register with the BIR: TIN, Form 1903, Certificate of Registration, books, invoices
  8. Months 2 to 7: Secure premises (lease / buy / donation / ground lease) after due diligence
  9. Months 6 to 7: Open a bank account and set up bookkeeping and an accounting system
  10. Months 6 to 8: Hire phase 1: part-time bookkeeper; executive director (not a trustee) if funds are confirmed
  11. Months 7 to 11: Apply for the BIR Certificate of Tax Exemption (RMO 38-2019; 3-year validity; income tax only)
  12. Months 6 to 11: DSWD registration, licensing and CRLTO for social-welfare activities (apply within 6 months of SEC certificate per DSWD MC 08 s.2025)
  13. Months 7 to 11: Fit-out / repairs: classroom, kitchen, optional dorm
  14. Months 8 to 11: LGU permits: barangay clearance, locational clearance, mayor's/business permit, sanitary permit
  15. Months 10 to 12: Fire Safety Inspection Certificate (BFP, RA 9514) before occupancy
  16. Months 10 to 13: Dorm and kitchen clearances: sanitary, food-handler health certificates, any dorm ordinance (if lodging)
  17. Months 9 to 13: Hire phase 2: programme manager, trainers; cook and caretaker if the dorm opens
  18. Months 9 to 14: TESDA programme registration per programme (PHP 2,000, 5-year CTPR) if offering NC-linked training
  19. Months 10 to 14: Pilot community workshops and seminars (no credentials promised)
  20. Months 10 to 12: DSWD public solicitation permit before asking the public for money (PHP 500 regional / 1,000 national; 1 year)
  21. Months 11 to 24: Fundraising and grant applications (donors, CSR, grants); donee receipts only once accredited
  22. Months 14 to 18: First cohort enrols and starts
  23. Months 15 to 18: First fiscal year closes; prepare financial statements (audited if assets or liabilities > PHP 3M)
  24. Months 17 to 20: File GIS, AFS and foundation annual forms (SS/COEP or NSPO) with the SEC; BIR annual return with CTE attached
  25. Months 20 to 23: Donee accreditation: PCNC route (needs latest audited FS, ITRs, BIR CTE, TESDA/DSWD certificates)
  26. Months 20 to 26: Donee accreditation: DSWD route under EO 117 s.2026 (BIR to recognise DSWD certificates); confirm which route applies before filing
  27. Months 23 to 26: BIR donee-institution recognition / Certificate of Registration as donee (2-3 months after endorsement)
  28. Months 26 to 32: Cure window if PCNC defers (up to 6 months) or re-application after a denial (1 year)
  29. Months 18 to 24: First graduation; outcomes baseline and 6-month follow-up (descriptive only)
  30. Months 18 to 30: Scale: cohorts 2-4; dorm fully used; second-year budget set with 10% contingency
  31. Months 26 to 30: Start issuing Certificates of Donation (triplicate within 30 days) once accredited; donors over PHP 1M notify RDO
  32. Months 24 to 30: Year-2 audit, impact report and donor reporting; renew solicitation permit
  33. Months 30 to 36: Loan readiness: 2-3 years of financial statements, board borrowing resolution, repayment plan from unrestricted income
  34. Months 33 to 36: Year-3 review: renew CTE (3-year validity) and accreditation; decide property strategy (lease, buy, donated, build)

Key dates calendar (.ics)

Pick when you start and when your first fiscal year ends. The file adds the SEC filing dates we found in the sources (General Information Sheet 30 days after the annual meeting, annual financial statements 120 days after year end, report of elected trustees and officers 30 days after the election) and four modelled milestones from the timeline. BIR annual filing dates are not sourced in our data, so they are not in the file: check the agency (your RDO) for those. The SEC may use a staggered schedule: check the agency.