Rules on Registration of Foundations

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SEC: Rules on Registration of Foundations

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Title Supreme Court: Rules on Registration of Foundations

Law: Sec

Decision Date: Sep 13, 1990

The SEC establishes rules for the registration of foundations, requiring non-stock non-profit corporations to have a minimum capital of P50,000, adhere to specific naming conventions, and submit annual financial statements, with penalties for non-compliance.

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Capital Requirements for Incorporation

Proposed Foundations must have an initial capital contribution of at least ₱50,000.00 at incorporation.
The capital requirement must be supported by a Certificate of Bank Deposit as evidence.

Public Fundraising Regulations

Foundations may conduct public fundraising activities.
Such fundraising must comply with all applicable laws, rules, and regulations enforced by the appropriate government agencies.

Financial Reporting Obligations

All Foundations registered under these rules must submit a cash flow statement to the Securities and Exchange Commission (SEC).
The cash flow statement must be in a prescribed form issued by the SEC.
This cash flow statement is part of the annual financial statements non-stock corporations are required to file.

Penalties for Non-Compliance

Failure to comply with any registration requirement or any provision of these rules makes the Foundation liable to a fine from ₱1,000.00 to ₱10,000.00 as determined by the SEC.
In serious violations, the SEC has the authority, after due notice and hearing, to suspend or revoke the Foundation's registration.

Effectivity

These rules take effect immediately upon publication in two newspapers of general circulation.

This regulatory framework reinforces prudent governance, financial accountability, and compliance mechanisms for Foundations operating as non-stock, non-profit corporations in the Philippines.

END