How to Start an NGO

You’ll need more than just money and a genuine desire to help others if you plan to start an NGO.
You’ll be filling up paper work, meeting new people, keeping track of financial reports, paying fees,
planning budget proposals, and organizing projects. It’s a long journey. So make sure that running
an NGO is what you really want to do.

Here we give you a step-by-step guide about the ABCs of starting your own NGO, divided into five
sections:

I. THE BASICS. A list of essential questions that you need to ask yourself first.
STEP 1. What is the purpose of this NGO?
Why do you want to set up an NGO?
STEP 2. Who are your beneficiaries?
Think about who will benefit from your NGO. Will you cater to children who can’t afford to attend
school, or women who are constantly battered by their husbands or partners, or aspiring
entrepreneurs who need financial guidance, etc.?
STEP 3. Do you have a planned Board of Directors?
The Board members must be of legal age, and the number of members must not be less than 5, and
not more than 15.
STEP 4. When and where do you plan to establish this NGO?

II. ORGANIZE. What you’ll have to do once your team is ready and confirmed.
STEP 5. Write your Vision statement.
How do you see this NGO after one year, three years, or eight years? What are your beliefs or core
values as a team?
STEP 6. Write your Mission statement.
How will you achieve your vision of the NGO? (The purpose of the NGO is usually the organization’s
standard mission statement.) Keep the statements short and easy to understand.
Tip: Let each Director/member say each statement in his or her own words.
STEP 7. Decide on your goals as an NGO.
What do you want to accomplish in the next 3, 6, or 12 months? What results do you intend to see in
a specific period of time? These results need to be specific, and measurable.
STEP 8. Choose a name.
The SEC Memorandum Circular No. 8-2006 says that the corporate name must include the word
Foundation. *

III. PREPARE YOUR DOCUMENTS. The first set of paperwork any organization needs.
STEP 9. Write the Articles of Incorporation.
The Articles of Incorporation are your corporate document that contains basic information about your
NGO. See this page to know more about how to write one.
(Note: Any corrections in the articles of incorporation should be duly notarized before filing for SEC
registration.)
STEP 10. Draft the By-Laws.
Bylaws contains the rules and the procedures for your meetings, elections of officers, etc. See this
page to know more about how to draft your own by-laws.
STEP 11. Prepare a list of members, and another list of contributors and/or donors.
Include the date of birth, specific address, and Tax Identification Number (TIN) of each member.
(Note: Majority of the members must be residents of the Philippines.)
 STEP 12. Prepare the Minutes of the Organizational Meeting.
The organizational meeting is usually the first formal meeting of the Board of Directors. It is often
during the organizational meeting where the articles of incorporation and bylaws are approved and
signed, and decisions are made about electing or appointing officers.
(Note: The articles of incorporation and bylaws should be signed on the same date.)

IV. REGISTRATION, ACCREDITATION and LICENSING.

All NGOs must be registered at the Philippine SEC.
NGOs under social welfare are encouraged to be registered and accredited with DSWD.
You may also need to be accredited/certified by PCNC if you would like to avail of maximum tax
benefits.

Start your NGO: SEC Registration

An NGO must be registered first at the Securities and Exchange Commission (SEC), and to be
registered, you’ll need some more documents.

STEP 13. Prepare the following documents accordingly (according to the official SEC
website):
If you intend to register as a foundation, prepare a notarized certificate of bank deposit not less than
Php1,000,000 (one million)*, and a statement of willingness to allow the SEC to conduct an audit. You
are also expected to include the word “foundation” in your official organization name.
For religious groups, refer to Sections 109-116 of the Corporation Code of the Philippines,
and include an affidavit of verification by the chief priest, rabbi, minister, or presiding elder.
For federations, submit a certified list of member-associations.
For condominium associations, submit your Master Deed, and certification that there is no other
existing similar association in the condo project.
STEP 14. Secure a Name Verification Slip.
You can get one from the SEC website or from the SEC Name Verification Unit.
STEP 15. Write an affidavit of an incorporator or Director undertaking to change the
corporate name.
If this wasn’t included in your Articles of Incorporation, have an affidavit ready. This affidavit is
necessary in case the SEC receives notice that another corporation or person has acquired a prior
right to the use of your NGO’s name, or that name has been declared misleading or confusingly
similar to a registered name.
STEP 16. Submit 4 copies (with cover sheets) of each document for SEC registration.
In summary, these documents are: (1) the Articles of Incorporation, (2) By-Laws, (3) Name verification
slip, (4) Affidavit, (5) List of members, (6) List of donors/contributors, (7) Notarized bank deposit
certification, and (8) Statement of willingness to allow an audit.
Note:  An NGO’s registration papers also includes an endorsement from a government agency that
corresponds to its purpose: charitable institutions must obtain endorsement from the Department of
Social Welfare and Development (DSWD); educational institutions must be endorsed by the
Department of Education (DepEd), the Commission on Higher Education (CHED), and/or the
Technical Education Skills and Development Authority (TESDA); and hospitals must get endorsement
from the Department of Health (DOH).
* Many have question the Php1M bank deposit requirement for  foundations. Apparently this is for
security purposes, as foundations are expected to use these funds to extend grants, etc.