The Securities and Exchange Commission is bringing all existing rules for foundations together into one complete set of guidelines, designed to make compliance simpler and strengthen supervision across the sector. Issued as a draft memorandum circular, this omnibus framework addresses longstanding challenges where requirements were scattered across separate laws, orders, and agency issuances, making them hard to track and follow. The new unified set will serve as one up-to-date reference covering everything from organization setup to regular reporting and ongoing compliance, including all necessary forms, templates, instructions, and procedures.
These proposed rules apply to every foundation already registered with the SEC, as well as all groups applying for registration. For clarity, a foundation is defined here as a non-stock, non-profit corporation created to give grants or endowments in support of its mission, or to raise funds for charitable, religious, educational, athletic, cultural, literary, scientific, social welfare, or other similar public purposes. Those seeking to register must be organized as non-stock, non-profit entities, include the word “foundation” in their official corporate name, and show a minimum paid-up capital of P1 million confirmed through a notarized bank deposit certificate.
Reporting requirements are also streamlined under the new framework. A membership book must be registered with the SEC within 30 days of incorporation, and the general information sheet is due within 30 days after the annual meeting, or no later than January 30 of the next year if no meeting is held. Foundations with total assets or liabilities worth more than P3 million need to submit audited financial statements, while those at or below that threshold may submit unaudited statements signed under oath by authorized officers. All financial reports must be filed within 120 days after the close of the fiscal year or in line with the SEC’s published annual filing schedule.
To cut down on paperwork, the draft replaces the previous multi-document reporting requirements under the Revised Rule 68 of the Securities Regulation Code (Republic Act No. 8799) with just three simplified forms tailored for non-stock, non-profit organizations. These forms use plainer language, clearer reporting items, and step-by-step guidance to help foundations submit complete and consistent information, with added sections to detail operations, activities, governance, programs, projects, and how funds are used. Penalties are also set out clearly: missing the filing deadline carries a fine of P2,500 per year, while failing to submit required forms at all will incur a fine of P5,000 per year. The public may submit comments on the draft through the official online form until October 15.
