The type of legal structure chosen by founders of a new charity will to some extent dictate which of the various legal requirements (under charity, trust, and/or or company law) will apply to the new organisation. …
What is a constitution in a charity?
Your charity’s governing document is a legal document. It works as a rulebook, setting out: its charitable purposes (‘objects’) what it can do to carry out its purposes (‘powers’), such as borrowing money.
What is a small charity constitution?
Suitable for small charities with an annual income under £5,000 that don’t own a building or employ people and do not intend to register with the Charity Commission. The charity shall be managed by a committee of trustees who are appointed at the Annual General Meeting (AGM) of the charity.
Do charities have constitutions?
A constitution is a type of governing document. All charities need governing documents. Governing documents are the formal documents that set out: … the way that the governing body of the charity (such as its committee of management, or board) makes decisions and consults any members.
What is a CIO constitution?
CIO (governing document: constitution). … A CIO is a corporate body (like a company) that can own property, employ staff and enter into other contracts in its own name (rather than in the names of the trustees).
What should be included in a constitution?
A constitution should provide the structure for an organization, describe its purpose, and define the duties and responsibilities of the officers and members. The objective is to draft a document that covers these topics in a simple, clear, and concise manner.
Is a constitution legally binding?
The reality is that much of our constitution is written down and quite considerable amounts of it codified. … Importantly, it is not a legally binding document, but provides one starting point for finding better ways to explain and examine our current constitution. Who is responsible for interpreting the constitution?
Do you need to register a charity?
All Charitable Incorporated Organisations (CIOs) must register with the Charity Commission, regardless of their annual income. CIOs do not formally exist as charities until they are registered.
Does a charity need articles of association?
There is no general requirement for a company to details its purposes, but a charitable company must include its purposes or objects in the articles of association.
Does a charity need a memorandum of association?
The key governing document of a charitable company is its Memorandum and Articles of Association. … This means that if a charitable company wishes to make any changes to its governing document, it will need to register the changes with Companies House and with the Charity Commission.
Is a constitution a legal document?
A constitution is a type of governing document. Your constitution is important because: It ensures that your group’s work is conducted in a responsible way and in accordance with the law. It makes your group accountable and ensures your group makes decisions in a democratic way.
Why does a club need a constitution?
A constitution sets out the purpose and rules of your sports club. It is the basic document which helps to ensure smooth and proper running of your affairs. Typically, the constitution will set out: … All sports clubs require a structure under which their club meetings are organised.
What happens if the constitution is not followed?
When laws, procedures, or acts directly violate the constitution, they are unconstitutional. All others are considered constitutional until challenged and declared otherwise, typically by the courts using judicial review.
Can a CIO own property?
The CIO is a separate legal entity and so it can enter contracts, hold property and employ staff in its own name.
Does a CIO need to register with Companies House?
Charitable incorporated organisation ( CIO )
A CIO is an incorporated structure designed for charities. You create a CIO by registering with the Charity Commission. You don’t need to register with Companies House. Trustees have limited or no liability for CIO debts or liabilities.
How many trustees does a CIO have?
Legally, the charity’s trustees will have general control and management of the charity’s administration. Usually, the Charity Commission would expect to see a minimum of two or three trustees, in the interests of transparency and good governance.