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New model constitution launched for charities under £5,000 income
2 November 2009
The Charity Commission has launched a new, simplified constitution for very small charities.
It is designed to provide a concise, practical framework for charities with an income of under £5000. 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 produce the new constitution.These include NAVCA, bassac, NCVO and the Small Charities Coalition.
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 £5000 do not need to register with the Commission, but are still subject to charity law. If the income of the charity grows larger than £5000, the charity will need to register with the Commission and will need a more comprehensive governing document.
Trustees should 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.
For more information: www.charitycommission.gov.uk
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