New model constitution launched for charities under £5,000 income

Joint initiative from Charity Commission and other sector bodies

(Immediate Release - 29 October 2009)

A new, simplified constitution for very small charities is being launched by the Charity Commission in partnership with umbrella bodies across the sector.

The new constitution is designed to provide a concise, practical framework for charities with an income of under £5,000. It uses clear, direct language that is easy to understand, is only 700 words long and covers all the requirements for a very small charity which does not own land or employ staff.

The Charity Commission has teamed up with nine umbrella organisations to take a fresh approach to writing a new constitution specifically for small charities. Combining the Commission’s extensive experience of charity law with the partners’ in-depth knowledge of community development ensures it will be a practical and helpful document for people who want to set up a very small charity. The Welsh County Voluntary Councils and umbrella body WCVA played a crucial role in piloting the small charities constitution in Wales, to make sure it was a practical and effective tool for very small charities. The constitution will be jointly promoted through the websites of ACRE, BASSAC, Charity Commission, Community Matters, CTN, DSC, NAVCA, NCVO, Small Charities Coalition and the WCVA. (See end for explanation of acronyms.)

Andrew Hind, Chief Executive of the Charity Commission, said;

“The Commission recognises the critical importance of the work undertaken by very small charities in communities throughout England and Wales. They form a vital part of the charity sector and we want to do everything we can to provide them with relevant and accessible guidance and support.

“This initiative also demonstrates the value the Commission places on working in partnership with sector bodies. Our shared aim is that the energy and commitment that is the hallmark of small charities is matched by effective governance, appropriate to the size of the organisations concerned. We hope that this new document will make life easier for everyone acting as a trustee in a very small charity.”

Charities with an income of less than £5,000 do not need to register with the Commission, but are still subject to charity law. If the income of the charity grows larger than £5,000, the charity will need to register with the Commission and will need a more comprehensive governing document.

This constitution is a useful addition to the range of other model constitutions produced by the Commission and other organisations. Trustees should also be aware that many national charities already produce their own model constitutions, including Parent Teacher Associations, the Pre-School Learning Alliance, Women’s Institutes, Scouts and Guides. The new small charities constitution is not intended for these specific groups.

End.

Notes to Editors

1. The Charity Commission is the independent regulator for charities in England and Wales. See www.charitycommission.gov.uk for further information or call our contact centre on 0845 300 0218.

2. The participating organisations are:

• ACRE Action with Communities in Rural England)
• BASSAC (British Association of Settlements and Social Action Centres)
• Charity Commission
• Community Matters
• CTN (Charity Trustee Networks)
• DSC (Directory of Social Change)
• NAVCA (National Association for Voluntary and Community Action)
• NCVO (National Council for Voluntary Organisation)
• Small Charities Coalition
• WCVA (Wales Council for Voluntary Action).

For further information contact the Charity Commission Press Office.

PR 45/09