Eleanor Finch
A charity constitution is a legal document that outlines the rules and regulations for a charity. It is a critical document that details the purpose of the charity, its functions, and the rules under which it will operate. The constitution is a rulebook that guides the charity's operations, including the powers it has to carry out its purposes, such as borrowing money, and the process for closing the charity if necessary. It also covers other important aspects, such as membership, meetings, trustee appointments, and rules on remuneration and investments. When setting up a charity, it is essential to refer to the standard constitution templates provided by regulators, which are often referred to as model governing documents. These documents ensure the charity's compliance with legal requirements and help avoid future issues.
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What You'll Learn
What is a charity constitution?
A charity constitution, also known as a governing document, is a legal document that outlines the rules and regulations for a charity. It is a crucial document that sets out the charitable purposes or 'objects', which refer to what the charity is set up to achieve and how it will benefit the public.
The constitution also details the charity's functions and the rules under which it will operate. This includes what the charity can do to carry out its purposes, such as borrowing money ('powers'), who will run the organisation (trustees, directors, the board, or management committee), and who can be a member. It should also outline how decisions will be made, such as the number of trustees required and how to recruit them.
Additionally, the constitution should specify how to manage the charity's finances, including any investments and property or land ownership. It should also outline how to amend the document, including changing its charitable objects, name, or legal structure, which typically requires approval from the board and, in some cases, members and/or regulators.
When setting up a new charity, it is recommended to use a standard constitution template provided by regulators, often referred to as a model governing document. This ensures compliance with legal requirements and can expedite the registration process.
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What should a charity constitution include?
A charity constitution, also known as a governing document, is a legal document that outlines a charity's purpose, functions, and rules. It is essentially a rulebook that dictates how the charity should be managed and run.
When writing a charity constitution, it is important to include the charitable purposes or 'objects' of the organisation. These should be clearly outlined to explain to new trustees, donors, or beneficiaries what the charity is set up to achieve and how it intends to achieve it. The constitution should also detail any activities that the charity will carry out to meet these purposes, although these can be amended and added to in the future.
The document should also outline the powers of the trustees, or those running the organisation, and how they can help the charity carry out its purposes. This includes any rules around how the board of trustees are appointed and managed, and how many trustees are needed to make decisions. Additionally, the constitution should include rules on remuneration, investments, and holding land, as well as how to look after the charity's money, property, and other assets.
Other important aspects to include are the rules and procedures for meetings, such as how to run trustee meetings, and how decisions are made and passed. It should also outline how to amend the governing document, including changing its charitable objects, and how to close the charity.
It is important to note that there are different types of charities with different legal structures, and the specific requirements of a charity constitution may vary. Templates are often available to ensure all necessary information is included.
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How to write a charity constitution
A charity constitution is a legal document that outlines the purpose of the organisation, its functions, and the rules under which it will operate. It is a crucial document that guides the charity's operations and decision-making. Here is a step-by-step guide on how to write a comprehensive charity constitution:
Identify the Type of Charity
First, understand the type of charity you are setting up. The structure of your charity will determine the specific requirements and templates needed for your constitution. For instance, charitable companies and CICs have articles of association, while charitable trusts and CIOs have model constitutions.
Understand Regulatory Requirements
Familiarise yourself with the regulatory requirements for charity constitutions. In the UK, the Charity Commission provides guidance and model governing documents for different types of charities. Understand the legal framework and the 13 descriptions of charitable purposes outlined in the Charities Act 2011.
Outline the Charitable Purpose
Clearly define the charitable purpose or objects of your organisation. This includes what the charity aims to achieve, where it will operate, who will benefit, and how it intends to achieve its goals. Keep the objects concise and broadly defined, ensuring they align with one or more of the recognised charitable purposes.
Detail Operational Aspects
Explain what the charity can do to carry out its purposes, also known as its 'powers'. This includes matters such as borrowing money, investing, holding land, and any other operational aspects. Outline the governance structure, including who runs the charity ('trustees') and who can be a member.
Define Meeting Procedures and Appointments
Describe how meetings will be conducted and how trustees will be appointed. Detail any rules regarding remuneration and compensation for trustees.
Include Amendment and Dissolution Provisions
Specify whether the trustees can change the governing document and outline the process for doing so. Additionally, include a dissolution clause that explains what happens to any remaining funds or assets if the charity needs to close down.
Seek Professional Advice
If needed, engage a solicitor or an organisation that advises charities. They can provide valuable guidance to ensure your constitution complies with legal requirements and effectively supports your charity's operations.
Remember, it is essential to tailor the constitution to your charity's specific needs and objectives. While templates can provide a helpful framework, seek legal advice if you have complex requirements or uncertainties.
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How to amend a charity constitution
A charity constitution is a legal document that outlines a charity's purpose, functions, and rules of operation. It is also referred to as a governing document. The purpose of a charity constitution is to provide a framework for the charity's operations, governance, and management. It sets out the charitable purposes, or 'objects', and the powers the charity has to carry out these purposes. It also outlines who runs the charity, who can be a member, rules on meetings, appointments, remuneration, investments, and holding land.
Now, to amend a charity constitution, here is a step-by-step guide:
Step 1: Understand the Governing Document
Firstly, it is important to understand the type of governing document your charity has. The document may be a memorandum and articles of association for a charitable company, a constitution for a CIO, or a trust deed for a trust, for example. Each type of document has different requirements for amendments.
Step 2: Identify the Amendment Process
Next, refer to your governing document to identify the process for making amendments. The document should outline whether the trustees can change the document and how this can be done. It may specify the number of trustees required to make decisions, and whether member approval is needed.
Step 3: Consult with Stakeholders
Depending on the structure of your charity, you may need to consult with members, beneficiaries, and other stakeholders about the proposed changes. This is an important step to ensure transparency and buy-in from those involved with the charity.
Step 4: Understand the Rules for Amendments
Charity law provides all CIOs with a power of amendment. However, there are rules that must be followed when using this power. Understand the legal rules for amendments and check your constitution for any additional rules or conditions that must be met.
Step 5: Make Decisions in the Charity's Best Interests
When using the power of amendment, ensure that any decisions made are in the charity's best interests. The Charity Commission may also require certain amendments to be in the public interest and exclusively charitable.
Step 6: Notify the Charity Commission
For certain changes, you must notify the Charity Commission and seek their authority. This includes changes to the dissolution clause, charitable purposes ('objects' clause), trustee benefit provisions, and changes that may create a conflict of interest.
Step 7: Keep the Constitution Up to Date
Regularly review your constitution and make amendments as needed to ensure it remains relevant and reflects the current needs of your charity. This will help your charity to operate effectively and adapt to changing circumstances.
It is important to note that the process for amending a charity constitution can vary depending on the jurisdiction and specific requirements of the charity's governing document. Always refer to the relevant laws, regulations, and guidance when making amendments to ensure compliance.
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Where to find a charity constitution template
A charity constitution is a legal document that outlines a charity's purpose, functions, and rules under which it operates. It is also known as a governing document. The document dictates how the charity is run, including how many trustees are needed to make decisions, how to recruit them, and how to run trustee meetings. It also outlines how to manage the charity's finances, land, property, and investments.
Charity constitution templates can be found online, and there are several sources that provide free templates. The Charity Commission provides model governing documents for charitable companies, trusts, and CIO foundations and associations. These are comprehensive and meet the needs of large and/or complex charities, but they can be lengthy and complex for smaller charities. Charity Excellence provides a simple toolkit to register your charity and download the relevant constitution template in Word format. This is a good option for small charities as they do not need to be registered with the Charity Commission. Simply-Docs also provides a range of constitution document templates for various types of legal structures, and these are available for £38.50 for unlimited downloads for one year.
If you are setting up a charity associated with a national organisation, it may have its own governing document template that you should use. You can also ask your national organisation if you can use one of the commission's model governing documents. The Charity Commission's website also has a table with links to governing document templates for each charity legal structure.
For a charitable company, you can download governing documents from the Companies House website. For a charitable trust, at least one independent person must witness the trustees' signatures in the trust deed.
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Frequently asked questions
A charity constitution, or governing document, is a legal document that outlines a charity's purpose, functions, and rules.
A charity constitution should include details about the charity's name, purpose, powers, membership, meetings, election of trustees, and how to make changes to the constitution and close the charity.
When writing a charity constitution, it is important to refer to a model governing document provided by the Charity Commission or other regulatory bodies, such as OSCR. These documents outline the required sections and clauses that need to be included. It is also essential to understand the legal structure of your charity and ensure that your constitution aligns with it.
Yes, a charity constitution can be amended. Changes to the constitution typically require approval from the board and, if applicable, members and/or the relevant regulator. The process for making amendments is usually outlined in the constitution itself and may require a special or extraordinary resolution, with a higher percentage of votes needed for approval.
