Constitution Advice
WHAT IS A CONSTITUTION
A constitution is a written document, which sets out how an organisation or group works. It may be called a number of different things - such as a set of rules, or Terms of Reference. As long as it covers the points set out below, it counts as a constitution.
WHAT A CONSTITUTION CONTAINS
This is a list of the most common things that are covered in a constitution. Some are essential (such as the name of the group and its objects). If some detail is missing the constitution may still be acceptable, but if there are lots of gaps it can be difficult to show that a group is eligible to apply for a grant.
- Name: of the group
- Objects: of the group, which can be called aims, objectives, or purposes. These are generally a few brief, overall statements.
- Powers: this is a description of how the group may achieve its objects or purposes.
- Committee: a description of how the management committee is elected or appointed.
- Membership: if the group has a membership, a description of how people can join.
- Payments or benefits: if expenses or other costs are made to members or the management committee this should be explained.
- Dissolution or Closing down: a description of what will be done with any surplus funds or assets if the group is wound up
NO PRIVATE GAIN OR PROFIT
For charities and voluntary groups, there must be no possibility of individuals making money from the organisation, for example through a dividend or bonus. Your constitution will help to make this clear.
- Reasonable expenses are allowed, and staff can be employed and paid.
DISSOLUTION CLAUSE
Some constitutions say what will happen to any money or other assets if the group closes down. In order to be eligible for Community Grants, under these circumstances assets cannot be paid to individuals, members, or to a local authority to use as it wishes. They must be passed on to similar groups, or to an organisation such as a local authority to hold and use for charitable purposes
ADOPTING THE CONSTITUTION
Your committee should have discussed, agreed and adopted the constitution. This can be shown by the constitution itself being signed and dated, and/or be a record in the minutes of the meeting.
- You should send a signed copy of the constitution
