Constitutions are known by many names - Set of Rules, Aims and Objectives, etc.

The constitution should set out clearly:

• The name of the organisation
• The overall objects (aims) of the organisation
• The powers of the organisation
• Rules for membership
• Rules for the Annual General Meeting and other general meetings
• Rules for selecting the managing committee
• The Financial roles
• How to alter the constitution
• A dissolution clause stating how a decision to close the organisation should be made.

Although not required by the Charity Commission it is now considered good practice to include a section stating an active commitment to equal opportunities.  Many funders include this as a requirement of eligibility to apply for grants.

Step by Step ……

1.           State the name the organisation will be known by.  You may need to check that there is not another charity using the same name, especially if you intend to use an abbreviated or “catchy” version e.g. Carers and Relatives of Somerville - CARE Somerville, or CARES.

2.              Objects are the Charity Commissioner’s term for the general purposes of the organisation.  These should not be confused with specific aims which should be part of a separate plan of action, or a business plan for the committee to work to.  The Objects should identify:

• the general aim e.g. to improve the quality of life, to provide information and support etc.
• who or what the beneficiaries are e.g.  Young people, elderly people, families of ethnic origin etc.
• The (geographical) area of benefit e.g. Luton, Luton and surrounding district, etc

Generally, it is not advisable to include specific activities such as “to hold a regional networking conference in the first year”  If you include this and then fail to do so,  you are in breach of your constitution and may have to go through the procedures for making alterations.  Better to be more general, for example “to promote regional networking.  This allows you to operate within your resources and meet this object in the most appropriate way.

3.           The Powers set out the powers available to the managing committee to enable the organisation to carry out its objects.  The Powers may include:

• To co-operate with other bodies
• To purchase or lease property
• To raise funds
• To invest money
• To employ staff

4.           Rules for membership - who can be a member, subscriptions and how a membership can be terminated, member voting rights.

5.           Equal Opportunities.  The constitution should not include an equal opportunities policy, rather a reference to the policy and the commitment to upholding and reviewing it on a regular basis.  (This can be included in a general “policies” section if you also need to refer to other policies such a Health & Safety, Disciplinary and Grievance procedures etc.)

6.           Rules for holding and running Annual General Meetings and other general meetings of the membership.  You must hold at least one general meeting a year (the AGM).  These should include:

• When during the year the AGM will be held
• How members will be notified of the meeting and the agenda items.
• Who can vote and acceptable forms of voting e.g. postal or proxy votes.
• How many members must be present to provide a ‘quorum’ (a valid decision making group).  This can either be a set number, or more advisable is a fraction or percentage - for example one third.

7.           Rules for selecting the managing committee.  A variety of terms can be used to describe the committee, such as Management Committee, Executive Committee, Board of Trustees, etc.  Whatever it is called, they all carry the same responsibilities.  This section should include:

• The maximum and minimum membership
• How members are appointed to the committee
• Who else can join the committee and how they are selected
• Who can vote
• The minimum Honorary Officers - Chair, Treasurer, Secretary, etc.
• How the officers are to be appointed (usually at the AGM)
• How long members can serve on the committee
• Powers of delegation, to sub-committees or staff, etc.
• Procedure for terminating committee membership
• Rules by which the managing committee must operate - frequency of meetings, notice of meetings, how many members are required to be present to form a quorum

8.              Financial Rules include:

• A commitment to keeping adequate financial records and accounts
• A commitment to audit or independent examination of the accounts
• A commitment to opening a bank account in the name of the organisation
• The signatory arrangements for the bank account - either how many or who, or both.

9.              Amendments to the constitution.  This clause sets out the procedures for altering the constitution.  The procedures usually include notification to the membership and the holding of a special general meeting, at which the membership will be asked to vote for or against the proposed amendment.

10.              Dissolution.  This clause sets out the procedures for winding up the organisation and disposing of any assets.  Again it is usual to include the arrangements to be made in holding a general meeting of the members.

As nearly all organisations have some kind of written rules, there are lots of examples to follow. Model constitutions are available from the Charity Commission:

www.charity-commission.gov.uk. The Charity Commission will advise any charitable organisation on developing a constitution.

Click to assess
Model Governing Document

Also Voluntary Action Luton has some model constitutions, which you can use almost immediately or use as a starting point.