How to Write a Constitution for a Community Group

Almost every community grant form asks the same question early on: are you a constituted group? Funders such as National Lottery Awards for All England list constituted voluntary or community organisations and constituted groups or clubs among those that can apply, and community foundations usually ask for a governing document. This guide explains what a constitution is, what it needs to say for funders to accept it, and how to adopt one.

If you are starting from scratch, our guide to getting your first grant as a community group covers the other basics, such as opening a bank account.

What a constitution is

A constitution is the written aims and rules of your group. The Resource Centre, which supports community groups, describes it as a statement of what your group is going to do and how it is going to do it. It also points out that funders will want to see that your group is democratic and accountable, with a clear way of making decisions.

For most small groups, a constitution creates an unincorporated association: a group of people who agree to work together under shared rules. It does not make your group a company or give it separate legal identity. The Charity Commission notes that in an unincorporated charity the trustees are personally liable for what it does, and the charity cannot enter into contracts in its own name. If you plan to employ staff, take on a building or manage large sums, look at an incorporated structure such as a CIO. Our CIO grants guide explains the options.

Is your group a charity?

The Resource Centre explains that if your aims are charitable, your group is a charity even if you have not registered with the Charity Commission. In England and Wales, a charity must register once its income reaches £5,000 a year.

If your aims are charitable, use the Charity Commission's model constitution for a charitable unincorporated association, or stay very close to it. That makes registering much easier later. If your group is not charitable, for example a social club run for its members, a simpler constitution such as the Resource Centre sample is fine.

What your constitution should cover

The Resource Centre suggests discussing each of these areas with your group before you write anything. The Charity Commission sets out similar sections for charities.

1. Name

The full name of your group, exactly as it will appear on your bank account and grant applications. Mismatches between the constitution, bank account and application are a common reason for delays.

2. Aims (objects)

What you want to achieve, for whom and where. The Resource Centre calls this probably the most important part of the constitution. Be clear and broad enough to cover the work you might do in future, but specific about who benefits and your area. Funders check your aims match your project.

3. Powers

What the group can do to achieve its aims, such as raising money, holding events, working with other organisations and buying equipment.

4. Membership

Who can join, whether there is a fee, how people join and how they stop being members. Keep a membership list, even if membership is open to all.

5. Equal opportunities

Many groups include a short statement of commitment to equal opportunities, with a fuller policy as a separate document.

6. Committee and officers

How many committee members you have, which officers (usually a chair, secretary and treasurer), how they are elected and for how long. Funders often set minimums here. Awards for All England, for example, needs at least 2 board or committee members who are not related. Two Ridings Community Foundation asks for at least three unrelated trustees, directors or committee members.

7. Meetings

When the annual general meeting (AGM) happens, how much notice members get, how many people must attend for decisions to count (the quorum) and how votes work.

8. Money

This is the section funders read most closely. The Resource Centre suggests stating that:

• a bank account will be kept in the group's name
• there will be at least three signatories, so two are always available
• every payment needs two signatures or approvals
• the treasurer keeps records and reports at each meeting
• annual accounts are presented at the AGM
• all money is spent only on the group's aims

Its sample constitution also says that signatories must not be related or members of the same household. Funders look for this because it protects the money. Two Ridings, for example, asks for a bank account in the group's name with at least two authorising signatories who are not related.

9. Changes to the constitution

Which meeting can change the rules and what majority is needed. If you are a charity, some changes, such as changes to your purposes, may need Charity Commission approval, and the Commission expects your governing document to say when.

10. Dissolution

How the group can close, and what happens to any money and assets left over. Funders often look for a clause saying that leftover assets go to another group with similar aims, rather than to members. Two Ridings, for example, asks for a governing document that includes a charitable dissolution clause.

If you are part of a national organisation

Some groups are local branches of a national body, such as a sports governing body, a youth movement or a federation of groups. The Charity Commission says that if you are setting up a charity associated with a national organisation, it may have its own governing document template, and you must use that template in full without changing or adding to it, or ask the national organisation whether you can use one of the Commission's models instead.

Check with your national body before you write your own. Funders are used to seeing these standard constitutions, and using one can save you time. Two Ridings Community Foundation, for example, says it can fund locally constituted and managed branches of national charities.

Adopting your constitution

A constitution only counts once your group has agreed it. To adopt it:

1. Share the draft with everyone who will be a founding member.
2. Hold a meeting to discuss and agree it, and elect your first committee.
3. Sign and date it. The chair and one other officer usually sign, with the date it was adopted.
4. Minute the meeting. Keep a short record of who attended and what was agreed.
5. Save a PDF. You will attach it to applications and give it to your bank.

Common mistakes funders spot

• Aims that do not match the project. If your aims say you support older people, a youth project will raise questions.
• No dissolution clause, or one that gives assets to members.
• One signatory, or signatories who are related or live together.
• An unsigned or undated document.
• A name that differs from the bank account.

Our guide to how funders assess grant applications explains the eligibility checks that happen before anyone reads your project.

Once you are constituted

With a constitution and a bank account in place, you can apply to a wide range of community grants. Good starting points are your local community foundation, your town or parish council and National Lottery Awards for All. Our community foundation grants guide and eligibility by organisation type guide explain what each will expect.

Find grants for constituted groups

GrantMatch lists open grants that constituted community groups can apply for. Browse grants for community groups or grants for sports clubs, or create a free profile and we will match you with the right ones.