Coverage and naming restriction
- Only non-stock non-profit corporations organized for charitable, religious, educational, professional, cultural, literary, scientific purposes, civic services, or similar purposes may use the word “Foundation” as part of their corporate name.
- Foundations in name are therefore limited to corporations fitting the non-stock, non-profit and stated purpose requirements.
Capital contribution requirement
- A proposed Foundation must have an initial capital contribution of at least P50,000.00 at the time of incorporation.
- The initial capital contribution must be evidenced by a Certificate of Bank Deposit.
Public fund raising and governing rules
- Public fund raising initiated by a Foundation may be conducted subject to applicable laws, rules and regulations implemented by the appropriate government agency.
Cash flow statement for registered Foundations
- All registered Foundations must submit to the SEC a cash flow statement.
- The cash flow statement must be in the form prescribed by the SEC.
- The cash flow statement must form part of the annual financial statements required to be submitted by non-stock corporations under existing regulations.
Compliance, penalties, and suspension/revocation
- A corporation that fails to comply with any requirement of these rules or violates any provision is liable to pay a fine of not less than PHP 1,000.00 but not more than PHP 10,000.00, as determined by the SEC.
- For serious cases, the SEC may, after due notice and hearing, suspend and/or revoke the corporation’s registration.