New Model Constitution For Very Small Charities
Recognising the valuable contribution made by very small charities, the Charities Commission has launched a new model constitution specifically designed to simplify the framework for charities with an income of less than £5,000.
The new model constitution is written in plain English and is only 700 words long. It is intended to provide effective governance for very small charities that do not own property or employ members of staff.
Designed to encourage people to get involved with small charitable projects, it enables trustees to have confidence in understanding their governing document.
Charities with an income of less than £5,000 are not required to register with the Charity Commission but are still subject to the laws governing charities in England and Wales.
If a charity exceeds the £5,000 income threshold, wishes to employ people or to purchase a building, it will be required to register with the Charities Commission and will therefore need a more substantial constitution.
A number of national charities, such as the Women’s Institute and Parent and Teacher Associations for example, already have their own model constitutions for trustees to use. The new model constitution is not intended for use in these cases.
Other small non-charitable groups may also adopt the new constitution for their own use, although they are not subject to charity laws.
For more information and to download a copy of the constitution, see http://www.charity-commission.gov.uk/registration/smallcharity.asp