non profit company constitution

The three main types of non-profit organisations are: See the LRC guide on Legal structures commonly used by non-profit organisations for guidelines on the differences between these types of non-profit organisations and on what their founding documents should cover. A constitution is the foundation for building an organisation. Fax: 012 429 2316, KwaZulu Natal Marci Manong The scope of a charity constitution is widespread covering almost all aspects of a non-profit’s operations. that the charity operates on a not-for-profit basis, and. ARTICLE IV. Every organisation is different and it is imperative that the constitution should accurately reflect the way in which the company operates. If preferred, you can include additional areas that detail information you believe is relevant to your particular organization. It also helps make sure everyone understands the responsibilities and obligations that go with being a non-profit organisation. Department of social development. The directors must approve any such payment before it … They exist to serve some public purpose rather than just serving the personal interests of the owners or members of the organisation. A non-profit company (“NPC”) does not have as its aim the making of profit, and must be established for a public benefit or for a purpose relating to one or more cultural or social activities, or communal or group interests. A constitution helps solidify the purpose and function of an organization, providing an overarching blueprint for its members. The different legal structures which a charity can adopt are as follows: company limited by guarantee, unincorporated association, charitable trust, or charitable incorporated organisation (CIO). In South Africa different types of organisations need to have different types of constitutions or founding documents. Free Free Non Profit Bylaws Template Download Available for Download in PDF Format. Sarah Hugow These fundamentals of the organization are matters such as the organization name, purpose, membership, officers, meetings, rules of procedure, and amendments. Keyword . Depending on the constitution of your non-profit organisation, you may need to have your accounts audited, or you may need to have them independently examined. Ideally, these entities will be in your same county and state. Example constitution and bylaws (__enter chapter name. Article I: Name State the name Article II: Purpose What are the aims of the organization How will the organization function For whom does the organize exist Whom does it benefit Article III: Membership The constitution of an incorporated association provides the structure for how the association operates. You can include bullet points to outline how your organization is going to meet your objectives. Write your nonprofit bylaws sample bylaws | nonprofit ally. Subjects . Tel: 0800 11 38 57 (free help line), Self-Employed Women's Union Download PDF. (2) Subject to section 34(3), a non-profit organisation shall submit to the Registrar, an application to register in accordance with the form set out in the First Schedule. your constituency   |   Recruiting Fax: 021 706 0765, Eastern Cape an organisation >> Constitutions for Non-Profit Organisations. Constitution for a charitable company limited by guarantee. When an organisation is going to close, for whatever reason, the constitution indicates how this should be done and what should happen to the resources of the organisation. |   Inputs and verbal reports   The guide is also useful for NGOs and community organisations that do not wish to register but would like a constitution that is clear and useful to members. Describe membership details of the organization: This is where you explain who your members are, including what their character traits are. A non-profit constitution is nothing more than the organization's by-laws. Page | 2 107200572 - 203726 (MEC) Contents . Fax: 056 215 2316, Gauteng You are here: It also details the duties and restrictions of the organization's officers and board members. If you do not have public membership you can skip this Article. The Education and Training Unit would like to thank LRC for making their material available. Important things to know about non-profit organisations. This Charity Constitution Document Templates subfolder provides a range of constitution document templates for various types of legal structure for use when forming a new charity. This guide will not be relevant to co-ops. Downloadable constitution template for companies limited by guarantee seeking to register with the ACNC. It is written for organisations that aim to make a contribution to society and organisations that are not set up to make a profit (non-profit organisations). creates a constitution for a Not-for-profit company (and, if applicable, also a trustee of an Ancillary Fund); and; we tell ASIC that the company is "a Not-for profit company (so that your company pays a lower annual review fee to ASIC). Look at the bylaws of already-established not-for-profit corporations, their structure, their wording, and their sections. A non-profit company is not required to have members. 1.1 Name . In fact, these constitutions are generally only seen among religious and charity-oriented nonprofit entities. English. Apple (MAC) Pages, Google Sheets (Spreadsheets), Microsoft Publisher, Apple (MAC) Numbers, Adobe Illustrator (AI), Apple (MAC) Keynote, Google Slides, HTML5. State governments have the final say on what must be included in the by-laws. They should record only those agreements that will remain true throughout the life of the organisation or until some major change happens. Fax: 011 403 8703, Western Cape Contact the Legal Resources Centre Office nearest to you for advice if you need it. Co-ops register with the Registrar of Co-operatives at the Department of Agriculture using a number of founding documents that are required. No need to spend hours finding a lawyer, post a job and get custom quotes from experienced lawyers instantly. Fax: 027 712 1212, Northern Province Instantly Download Non Profit Templates, Samples & Examples in Adobe PDF, Microsoft Word (DOC), Microsoft Excel (XLS), Adobe Photoshop (PSD), Google Docs, Microsoft PowerPoint (PPT), Adobe InDesign (INDD & IDML). 1.2 Definitions . For example, if you are organizing a religious institution, you may want to include a segment that outlines the key articles of the institution's faith. Tax-exempt status is granted by the IRS, which does not directly require nonprofits to include specific provisions in their bylaws. Of course this does not mean that the guarantee company cannot make a profit, as indeed it is almost paramount that it can and does so. The objectives you include should be relevant to the long-term goal and purpose of the organisation. All charities need governing documents. 1.1 Name . Toolbox >> Building Most of the time you have to have the majority (2/3) votes to amend the constitution. All key information should be included, such as where activities will take place. Also, include how long officers stay in office and provide details as to how they can be removed from their positions and replaced with new officers. Education & Training guide, This material may not be used for profit without It does not cover private companies or even co-operatives or income generating projects that exist solely to produce benefits for members. If you have questions regarding how to develop a constitution for nonprofit organizations, post your legal need on UpCounsel today. It exists as a separate legal entity which can sue or be sued in its own name, can enter into contracts or own property in its own name. This Non-Profit Bylaws document is used once a non-profit organization has been incorporated to define the structure and operations of the organization. Tel: 021 706 2050 This Guide is intended only for those organisations that fall under the Non-Profit Organisations Act (NPO Act). Once you have developed the constitution and bylaws, review them often. They exist for the benefit of the general public or specific sections of the public. Any changes should be publicised to members and the public [if relevant] and if you have registered your organisation, you will have to inform the bodies with whom you registered. When the organisation is up and running, the constitution is used by people inside and outside the organisation who want to understand the organisation's purpose, how it is governed and their responsibilities and rights. Non Profit Bylaws Template Preview The following bylaws are intended only as a model. Just as a constitution organizes a government and describes how that government functions, so do by-laws. Downloadable constitution template for companies limited by guarantee seeking to register with the ACNC. The Legal Resources Centre's Non-Profit Organisations Legal Support Project provides the following services: The LRC is bound by the policies of the Law Society that specify that they may only offer their services to organisations that could not otherwise afford such legal services. In South Africa the Non-Profit Organisations Act (NPO Act) covers non-profit organisations and the legal steps for registering them. Fax: 017 683 0135. It should contain all the key agreements made by members on how the organisation will work. Examining Generational Constitutions 30th July 2018 . Hlengiwe Gasa Tel: 018 381 4901 1.3 Exclusion of replacement rules . 1.5 Application of in of the company constitution. Assistance to NPOs to register with other public offices, such as the Receiver of Revenue for tax or VAT purposes. Name a. The issue of whether an employer is a constitutional corporation usually arises where the employer is a not-for-profit organisation in industries such as health, education, local government and community services. This will help you form your own corporate bylaws. Subjects . You can register a non-profit company as a: standard non-profit company (with members) standard non-profit company (without members) Unlike bylaws, however, the constitution will typically explain the belief system of the organization, and it will outline the company's guiding principles along with its moral direction. Registration of non-profit organisations. Meshack Nkabinde Tel: 08000 37 007 (free help line of the Department of Trade and Industry, Ntsika CONSTITUTION FOR A NON PROFIT COMPANY WITH MEMBERS OUT OF HOME MEDIA SOUTH AFRICA (NPC) Which is referred to in the rest of this Constitution as “the Company” Registration Number: 2014/004036/08 This Constitution was adopted by a Special Resolution passed at a Special General Meeting held on 8 th March 2018 . Examples of nonprofit organizations constitution can provide a thorough understanding of how businesses are supposed to operate.3 min read. Corporate Earnings: When Taxable. State governments have the final say on what must be included in the by-laws. Step 2. If your organisation is formed as a co-operative or income-generating project, you should contact the Legal Resources Centre (details provided below) for advice on where you can go for help. In addition, you can choose a doing business as name. The share structure allows the company to distribute profits and dividends to shareholders in proportion to their shareholding. If you choose to follow state law, restating them in your bylaws will ensure that all your operating rules are in one document. Bylaws are essentially the rules for how the organization will be governed and describe many of the non-profit's activities, such as annual meetings, the composition of the Board of Directors, and voting procedures. It should tell you the following: The constitution or founding documents should be clear and simple so that members understand their rights and responsibilities, leaders understand their mandate and how to be accountable and members of the public understand why the organisation exists and how it operates. Most NPOs have to rely on grants and donations from fundraising because NPOs usually serve sections of the community that could not afford to pay the full cost of the service. Specify the name of your organization: Informal groups that wish to adopt a constitution already in place to serve as their guide for operating will need to choose a name that is reasonably unique. Every organisation is different and it is imperative that the constitution should accurately reflect the way in which the company operates. If your organisation is a non-profit organisation, what type of non-profit organisation it is. Such powers include: 6.1 To institute or defend any legal or other proceedings and to settle any claims, 6.2 To prudently invest funds of the Association, 6.3 To buy, attain, maintain, manage, lease, sell, or in any way deal with property Green papers; Annual reports; Other documents; Documents for public comment; Statistical documents; Parliamentary documents; Search . Want High Quality, Transparent, and Affordable Legal Services? Explain why the organization exists: You will want to include facts and statistics outlining why the charity should exist. Share it with your network! Have a professional editor look through the document and correct any errors that may be present. Central Coast Community Women’s Health Centre Ltd. ACN 001 330 472 . These organizations are created either for a charitable purpose or for the public good and they are usually exempted from paying taxes to the government. Search the site . There are, however, different types of NPOs. This is a type of company which carries out non-profit making activities that are related to national or public interest. Providing an information service to NPOs on good governance, legal and administrative policy and practice issues. 1.5 Application of in Therefore, it becomes important to create such a document with the utmost care and effort. Advice to NPOs on the type of organisation they should establish to achieve their aims and objectives. The NPO Act and the steps for registering an organisation are dealt with in detail in the LRC guide to the Non-profit Organisations Act. Co-operatives (co-ops) are not NPOs and do not fall under the NPO Act. your constitution will depend on what type of legal structure your organisation has and what law it falls under. corporate giving programs about the needs of organizations that advocate for clean water; to sponsor reports, meetings and workshops for environmental nonprofits about how to to strengthen environmental organizations ; and to educate the public about the funding needs of organizations that work to protect and restore rivers. Assistance to NPOs to establish a Voluntary Association, Trust or Section 21 Company. Some kinds of organisations must have written constitutions or founding documents that are legally registered. Legal structures commonly used by non-profit organisations will be very relevant to those who wish to register their organisation as a non-profit organisation - that is either a Voluntary Association, a Trust or a Section 21 Company. Additionally, they will have the same focus or purpose as your company. A full audit is typically needed for larger charities but for smaller non-profits, the company constitution should let you know what you need to do. A non-profit constitution is nothing more than the organization's by-laws. How to complete the npo application form 2011. NPOs do not usually choose their target groups according to who can pay for the service, but according to who needs the service most. The appointment of an auditor and company secretary is not mandatory but optional. Registration gives the organisation rights, duties and privileges in relation to accountability, fundraising and tax. Jessica Fortuin CONSTITUTION FOR A NON PROFIT COMPANY WITH MEMBERS OUT OF HOME MEDIA SOUTH AFRICA (NPC) Which is referred to in the rest of this Constitution as “the Company” Registration Number: 2014/004036/08 This Constitution was adopted by a Special Resolution passed at a Special General Meeting held on 8 th March 2018 . Lungi Mathole Detail the mission and goals of the organization: This should include listing any broad objectives the organization has, as well as any activities that may take place that speak to the growth of the organization's operational processes. When the company is wound-up the liability of the shareholders is limited to the amount they've paid for their shares. An organization has a great deal of lati- tude in shaping its bylaws, and does not need to follow this model. The constitution is the key founding document of an organisation. It is a major decision to change a constitution and the existing constitution should say when and how it may be done. Guarantee companies are useful for non-profit organisations that require corporate status. ARTICLE I … Tel: 043 743 7725 The needs of your group will change over time and it’s important that the constitution and bylaws are kept up to date to reflect the Cautionary notes . (1) A non-profit organisation shall not carry out operations unless it is registered under this Act. A typical constitution addresses all aspects of the organization, purpose, functions, persons in charge and members. THE COMPANIES ACT 2014 – CONSTITUTION TEMPLATE. The court may alter a company's constitution, if it is satisfied that an application made by either a director or shareholder justifies this. The law regards these as for-profit organisations. There are three other guides in our Community Organisers Toolbox that will give you more details on the legal requirements for non-profit organisations. The main purpose of for-profit organisations is to make money for members or owners. Let them know you are looking for a constitution to study so you can create your own. Home » Documents » Acts. Ideally, these entities will be in your same county and state. This guide on Constitutions is only relevant to organisations that are both non-profit and non-governmental. Constitutions are not like plans. Just as a constitution organizes a government and describes how that government functions, so do by-laws. Many nonprofits pursue 501(c)(3) tax-exempt status, which allows organizations to avoid certain corporate, sales, and property taxes. This is a wide group of organisations, from large charitable NGOs like Child Welfare to small community organisations like sports clubs or civics. Others do not have to register their constitutions, although they may, if they wish to do so. Keyword . All organisations that fall under the Non-Profit Organisations Act (NPO Act) may choose whether to register with the Non-Profit Organisation (NPO) Directorate of the Department of Social Development. When members have developed the constitution, they can use it to register as a non-profit organisation. Get a court order. A co-op has the potential to operate democratically in that the members may work for themselves and decide together how to run the co-op and how to share the profits fairly." 1.3 Exclusion of replacement rules . It is extremely helpful to review other nonprofits in your area for suggestions on how to compose your own constitution. The minimum amount of members required on a Non Profit Organization is five. They should not need to be changed often, although they can be changed [amended] if members feel the need to make new agreements about the basic principles of the organisation. These include: From the information you have compiled, create a list of the required elements you are going to include in the constitution. Legal structures commonly used    Applications to register under the NPO Act must be sent to the Directorate of NPOs at the Department of Social Development: Directorate of NPOs  This means that its profits are not distributed to its members but are retained to be used for the purposes of the guarantee company. Constitutions play a key role at different times in the organisation's life: The legal word for constitutions is "founding document". A foreign corporation is a corporation that has been formed outside of Australia. The different legal structures which a charity can adopt are as follows: company limited by guarantee, unincorporated association, charitable trust, or charitable incorporated organisation (CIO). The Association shall have the same powers as that of a company under the Companies Act, as amended. Adapted 27th October 2020 . Step 3. End Date . The minimum amount of directors required on a Non Profit Company (NPC) is three. Training for attorneys and candidate attorneys in non-profit institutional and legal issues to ensure informed assistance is available to NGOs. The difference between non-profit and for-profit organisations; The basic issues of the Non-Profit Organisations Act and the benefits of registering under the Act; Each type of non-profit organisation, what kinds of organisations each type of legal structure is most useful for and the advantages and disadvantages of each type; What structures and laws apply to each type; How to form an organisation of each type; Organisations that do not fit the definition of a Non-Profit Organisation in the NPO Act are not allowed to register under the Act. And get custom quotes from experienced lawyers instantly introductory guide on constitutions above comes from the legal for! By two thirds of those members present and voting at any general meeting ).! 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