This is advice for not-for-profit groups, considering becoming a small community group if you are considering becoming a company or sole trader, this advice is not for you.
The constitution is the legal framework for managing a group. There are good reasons for this - it will allow you to apply for funds, it sets up a legal framework for responsibility and decision-making and gives you the opportunity to be clear about what your objectives are.
You do not legally have to become constituted, however there are many things un-constituted groups cannot do.
The simplest form of small group is called an Unincorporated Association, however there are many frameworks for groups including, Charitable trust, Charitable Incorporated Organisation, Company limited by guarantee, Charitable company, Community Interest Company, Community Benefit Society and Cooperative Society.
These are generally for larger voluntary sector endeavours. If you feel that a larger, more formal regulated structure is what you need come and talk to us at Salford CVS about the options. It is worth noting that many of these larger organisations start life as unincorporated associations and then develop.
UA’s can have up to £5000 tax-free income a year, if they can be considered an unregistered charity to do this thy must include
- Charitable Purposes - The group must exist entirely to deliver aims recognized in law (e.g., relieving poverty, advancing education, health, or religion) this is very wide an most community groups are set up to do this
- Public Benefit - The activities must clearly benefit the public (or a sufficient section of it) rather than just the members of the group.
- Unincorporated Structure -Most unregistered charities operate as an Unincorporated Association. This means they are not distinct legal entities, so the management committee or trustees are personally responsible for debts and contracts.
- Governing Document - The group must have a written set of rules, commonly known as a constitution, which outlines what the group does and how it is run.
The majority of small community groups are Unincorporated Associations. However, before you make the decision to become a group sit down with all the people who wish to be part of that group and put tangible answers (and by that I mean names of people who are committed to doing these things) alongside the questions below. It is likely to take more than one meeting as you may need to gather information to answer some of the questions properly.
Now it's time for a cuppa with your interested people and a look at honestly answering the questions below, don’t forget time, you may want to do something but be realistic about the amount of time it will take.
- In no more than three bullet points what do we want to achieve with our group?
For example friends of the park group might want a clean, safe and accessible park, where a community support group might want to provide companionship and reduce isolation.
- Will our group be for members of the group only or is open to and of benefit to the wider community?
- Do we need a committee? (A named group of people responsible for the group and for getting things done)
- Do we have the people who would run a committee? (A minimum of three but ideally at least five people who will share the responsibility for the group, its money and its actions)
- Do we have a constitution? (Are you part of another group or an older group that still has a constitution but it does not relate to what you do)
- Do we need a constitution? (Legal protection and safeguard which outlines what you do and who does it)
- Is there another group or organisation locally doing what we want to do and is it possible to join them rather than constituting a new group?
- When will we hold meetings?
- Do we need a bank account?
- Do we need policies and procedures?
- Does our work involve young people or adults at risk of becoming vulnerable?
- Do we need to generate funds?
- Do we know how to manage funds?
- How will we generate funds?
- Do we need to get training? Training is available to help you learn how to manage a group, deal with money, running record meetings. (You may also identify the unique training for example in things like first-aid or safeguarding)
- Do we need to advertise?
- Have we taken into account legal responsibilities towards ourselves and our volunteers?
- Have we taken into account legal responsibilities towards the people who are our group members and / or those who use our group?
Once you’ve had your initial conversation and answered these questions you are ready to move on to constituting your group.
