Advice on Constitutions

For groups without a constitution, or one which they wish to revise.

1. 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 constitution, set of rules, terms of reference or similar. As long as it covers the points set out below it acts as a constitution.

2. WHAT A CONSTITUTION CONTAINS

The Group's name	'The Group shall be called (Full Title),hereafter to be referred to as ('The Group'/'Club') and shall be affiliated to the (name of County/Regional/National body if applicable) organisation.'
Objects of the group	These are generally a few brief, overall statements of aims, purpose or objectives - for example 'To foster and promote the (Sport or Art or Heritage) of (name of Sport or Art or Heritage) at all levels, providing opportunities for recreation and (competition or performance or understanding or participation)' Note: The National Lottery Charities Board, one of the participating distributors, requires the objects to be charitable, benevolent or philanthropic.
Powers	This is a description of how the group may achieve its objects or aims
Membership	If the group has a membership, a description of how people can join - 'Membership of the (group/club) shall be open to any person completing a membership application and paying the relevant subscription/joining fee as determined by the Annual General Meeting of the (group/club) members'
General Business	'the affairs of the group/club shall be controlled by a committee comprising the Officers and (number) other members elected from, and by, the Members of the group/club. The Committee shall meet at agreed intervals and not less than four times per year'
Committee etc.	A description of how the management committee is elected or appointed - 'All officers and members of the committee shall be elected at the Annual General Meeting of the (group/club) from and by, the Members of the (group/club) on a democratic basis, for a period of one year, but may be re-elected tot he same office or another office the following year'
Payment or benefits	If expenses or other costs are made to members or the officers/committee this should be explained and show that only 'reasonable' reimbursement may be made. (people on the committee and who undertake work for the group may be paid i.e. salaries)
Duties	'The duties of the committee shall be: To control the affairs of the group/club To Keep accurate accounts of the group/club finances through the Treasurer. These should be available for reasonable inspection by members and should be audited before and available at the AGM To maintain a bank account in the club/group name requiring at least two named and unrelated senior officers to sign each cheque. To make decisions on the basis of a simple majority vote. The chair shall be entitled to an additional casting vote in the event of tied votes.'
General Meetings	A description of the business of the AGM and as to when it shall take place
Alterations to the Constitution	A description as to how the Constitution may be altered at the AGM. Note: if a charitable group it should not allow changes to 'objects' unless it is to another charitable object(s) nor to the dissolution clause.
Dissolution or Winding Up	A description of the steps to be taken to dissolve the club/group and of what will be done with any surplus funds or assets. Note: if a charitable group this 'surplus' must be handed over to another charitable group.
Adoption	The constitution must be signed by a senior officer evidencing adoption

THE MEANING OF CHARITABLE, BENEVOLENT OR PHILANTHROPIC

To count as benevolent or philanthropic you must be largely charitable. This can be complicated, so if in doubt get advice. (see below)

In a summary these are the kind of things, which should be in the constitution.

At least one charitable aim or object

• Relief of the poor, old, sick or disabled people
• Advancement of education
• Other purposes beneficial to the community (e.g. providing community buildings, protection of the environment)

Clear public benefit

• This is an important point and means that clubs, which are for members only, or organisations, which have a very restricted geographical area of benefit, may not be eligible for an NLCB award.

No private gain or profit

• No possibility of individuals making money from the group, for example through a dividend or bonus. Reasonable expenses are OK and staff can be employed and paid.

Dissolution

• Surplus assets must be passed on to similar charitable groups - not individuals.

Getting help with your Constitution

Registered Charities are automatically eligible.

Your local helper organisation, Council for Voluntary Service, Rural Community Council or Council for Racial Equality etc. can give advice on constitutions, eligibility and applications.

See an example draft constitution Opens in a new window

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