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Governing documents

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The key legal document in a charitable organisation is its governing document

by Cass CCE last modified Jul 30, 2010 12:27 PM

The governing document sets out the charity's objects and how it is to be administered.

The document, as well as the titles of the trustees, may be different depending on the type of charity, but the most common terms are:

 

Type of charity
Governing document
Usual title of the charity's trustee
Unincorporated association or society
Constitution or rules
The executive or management committee
 Charitable company (an incorporated charity)
Memorandum and Articles of Association
 Directors
 Charitable trust
Trust deed  Trustees
Governors

Contents of the governing document

Your governing document contains all the information needed to run a charity, such as:

  • what the charity is set up to do (known as its 'objects')
  • how the charity will do those things (known as 'powers')
  • who will run the organisation (the trustees, directors, the board or management committee)
  • how it is to be run and administrative arrangements for meetings, voting, looking after money, delegation to sub-committees etc
  • what happens if administrative provisions need to be changed
  • what happens if the charity wishes or needs to wind up.

Compliance requirements

Charities are legally required to comply with their governing document. This includes ensuring that:

  • the charity's activities remain within the objects set out in the governing document
  • any new activities are permitted within the objects
  • the trustee body is properly and legally constituted
  • trustees have a sound knowledge and understanding of the governing document.

Source: Published with permission from Cass Centre for Charity Effectiveness. This material is taken from "Tools for Success: doing the right things and doing them right", published in October 2008. Download or buy your copy from Cass Centre for Charity Effectiveness.

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