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). The Education and Training Unit would like to thank LRC for making their material available. 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 Because of this aspect of constitutions, you will not normally find them among for-profit companies. These laws tell you what must be coved by the founding document of your organisation. Any changes to this constitution must be agreed by at least two thirds of those members present and voting at any general meeting. ARTICLE I … 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. Ideally, these entities will be in your same county and state. The detailed guide developed by the LRC on constitutions on How to complete the npo application form 2011. 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). In addition, you can choose a doing business as name. 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. CONSTITUTION THE PHEAN PROJECT Non Profit Organization (Section 21) South Africa Company number: (pending) The following sets out the constitution for which “The Phean Project” (hereafter referred to as “the organisation”) will operate under: 1. Because of this aspect of constitutions, you will not normally find them among for-profit companies. Non Profit Bylaws Template Preview The following bylaws are intended only as a model. Click below to go to them: You will find details about LRC and how you can contact them in these guides Section 1. This is a wide group of organisations, from large charitable NGOs like Child Welfare to small community organisations like sports clubs or civics. The template can most appropriately be used as a basis for discussion between the company and its legal advisor and as an aid to drafting. A constitution is the foundation for building an organisation. Fax: 012 429 2316, KwaZulu Natal The constitution is the key founding document of an organisation. Non-governmental organisations (NGOs) are organisations that are not part of government. Legal structures commonly used by non-profit organisations, A model constitution for a voluntary association with explanatory guidelines, Contact details of those who can offer further assistance, LRC guide on Legal structures commonly used by non-profit organisations, Different kinds of organisations are covered by different laws, Different types of non-profit organisations, Decisions to be made before drawing up a constitution or founding document. Search the site . The scope of a charity constitution is widespread covering almost all aspects of a non-profit’s operations. The primary objective of a non-profit company is to benefit the public and not to make a profit. It also helps make sure everyone understands the responsibilities and obligations that go with being a non-profit organisation. They may even be willing to help you prepare your own. THE COMPANIES ACT 2014 – CONSTITUTION TEMPLATE. Governing documents are the formal documents that set out: the charity’s charitable purpose or purposes. They exist to serve some public purpose rather than just serving the personal interests of the owners or members of the organisation. Fax: 017 683 0135. Fax: 056 215 2316, Gauteng Any assets shall be returned to their providers, if they require it, or shall be passed to another group with similar aims. 1.1 Name . Any profit that is produced is used by the organisation to make a greater impact in terms of their public purpose. For example you may say " A Chairperson, secretary, treasurer and at least three additional members will be elected as an executive at the AGM" This allows you to change the number and the portfolios on the executive as your needs change, without having to amend your constitution. Registration gives the organisation rights, duties and privileges in relation to accountability, fundraising and tax. A nonprofit organization (NPO), also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in contrast with an entity that operates as a business aiming to generate a profit for its owners. Unlike a society, a CLG is governed by the Companies Act. 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. If preferred, you can include additional areas that detail information you believe is relevant to your particular organization. A non-profit company is not required to have members. The objectives you include should be relevant to the long-term goal and purpose of the organisation. Constitution for a charitable company limited by guarantee. that the charity operates on a not-for-profit basis, and. In fact, these constitutions are generally only seen among religious and charity-oriented nonprofit entities. Tel: 021 706 2050 Show the structure of the board of directors as well as the positions of any officers who help manage the organization: Here you will detail how officers are chosen and what powers they have the right to exercise. This is also extracted from the Minnesota Council of Nonprofits Sample Bylaws with Membership. 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. Assistance to NPOs to register with other public offices, such as the Receiver of Revenue for tax or VAT purposes. … SAMPLE CONSTITUTION The constitution of an organization contains the rules that govern the actions and activities of the group. 2 TABLE OF CONTENTS SUBJECT MATTER PAGE NUMBER 1. Free Free Non Profit Bylaws Template Download Available for Download in PDF Format. Foreign corporations. Legal structures commonly used The constitution or founding documents will usually have detailed and clear sections on: Constitutions should be written so that they will not need to be changed throughout the life of an organisation. 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. Every organisation is different and it is imperative that the constitution should accurately reflect the way in which the company operates. SAMPLE CONSTITUTION AND BY-LAWS FOR UNIONS (PRIVATE SECTOR) NAME OF UNION C O N S T I T U T I O N P R E A M B L E WE, the employees of the _____, in order to promote our moral, social and economic well-being; protect and uphold our individual and collective rights, as well as foster harmonious and progressive labor management relations do hereby promulgate this CONSTITUTION. Nonprofit Organisations Amendment Act 17 of 2000. Get an Alberta NUANS report. 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). The template can most appropriately be used as a basis for discussion between the company and its legal advisor and as an aid to drafting. There are, however, different types of NPOs. 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. Many nonprofits pursue 501(c)(3) tax-exempt status, which allows organizations to avoid certain corporate, sales, and property taxes. Constitutions play a key role at different times in the organisation's life: The legal word for constitutions is "founding document". A non-profit constitution is nothing more than the organization's by-laws. Non-Profit Organizations include trusts, cooperative societies or associations, and Companies which come under Section 8 of the Companies Act 2013[2]. There is not much competi… members | Guide to Constitutions Tel: 0800 11 38 57 (free help line), Self-Employed Women's Union A constitution helps solidify the purpose and function of an organization, providing an overarching blueprint for its members. Example constitution and bylaws (__enter chapter name. Training for attorneys and candidate attorneys in non-profit institutional and legal issues to ensure informed assistance is available to NGOs. In fact, these constitutions are generally only seen among religious and charity-oriented nonprofit entities. Advice to NPOs on the type of organisation they should establish to achieve their aims and objectives. This means that its profits are not distributed to its members but are retained to be used for the purposes of the guarantee company. ARTICLE IV. Most of the time you have to have the majority (2/3) votes to amend the constitution. It is a major decision to change a constitution and the existing constitution should say when and how it may be done. It's simple enough, file Article of Incorporation with the state and include a $25 check. Baba Michael Jordaan The appointment of an auditor and company secretary is not mandatory but optional. Sarah Hugow The description of structures also should not be too detailed. You may need a court order for change of capital. a provision stating that the organization will be operated without purpose of gain for its members, and that any profits or other assets of the organization will be … Tel: 031 307 1061 Non-profit companies must at all times have at least three directors (unless MoI indicated a higher minimum number of directors). Hlengiwe Gasa Start Date . Constitution of SA; Bills; Draft bills; Notices; Tenders awarded; White papers. The following are some organisations that may be able to help these kinds of organisations with assistance and advice: Centre for Small Business Promotion 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. 1.2 Definitions . The Association shall have the same powers as that of a company under the Companies Act, as amended. Constitution for a charitable company limited by guarantee. When members have developed the constitution, they can use it to register as a non-profit organisation. Write your nonprofit bylaws sample bylaws | nonprofit ally. of the company constitution. The type of founding document you must have and what it should cover according to the law will be affected by: Non-profit organisations (NPOs) do not exist to make a profit from the work of the organisation for the owners or members of the organisation. Contact the Legal Resources Centre Office nearest to you for advice if you need it. Step 3. If you choose to follow state law, restating them in your bylaws will ensure that all your operating rules are in one document. Constitution of a company limited by guarantee formed for non-profit charitable purposes . Fax: 018 381 6258, Mpumalanga 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. Let them know you are looking for a constitution to study so you can create your own. If you have questions regarding how to develop a constitution for nonprofit organizations, post your legal need on UpCounsel today. 1 A PRACTICAL GUIDE FOR BOARD … A state's attorney general's office will regulate non-profit organizations while the federal government is the entity granting an … It does not cover private companies or even co-operatives or income generating projects that exist solely to produce benefits for members. Home » Documents » Acts. Fax: 043 743 2656, Northern Cape Apple (MAC) Pages, Google Sheets (Spreadsheets), Microsoft Publisher, Apple (MAC) Numbers, Adobe Illustrator (AI), Apple (MAC) Keynote, Google Slides, HTML5. An association may: adopt the Model constitution, or ; adopt its own constitution. A constitution usually requires a 2/3 vote of the membership for adoption. Organisations that exist to help communities develop income-generating projects would, however, usually be NPOs. Example constitution and bylaws (__enter chapter name. 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. You can use the given pdf sample as reference material for preparing a well-rounded constitution document for your organization. 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. They show some of the most general ways of writing bylaws. | Conflict management The minimum amount of directors required on a Non Profit Company (NPC) is three. your constituency | Recruiting This could, technically, cover private companies but, in practice, when we refer to NGOs in South Africa, we mean only those non-governmental organisations that are non-profit as well. You can register a non-profit company as a: standard non-profit company (with members) standard non-profit company (without members) 1. Additionally, they will have the same focus or purpose as your company. A non-profit company must have at least three incorporators and three directors and may be registered with or without members. of the company constitution. The profits of any company formed for the purpose of promoting sporting activities where such profits are wholly expendable for such purpose (CITA Section 23(1)(c) and (d)). The main purpose of for-profit organisations is to make money for members or owners. Planning | Understanding General. General. Once you have developed the constitution and bylaws, review them often. 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. End this section with a brief summary of why the organization is being created. Search the site . Additionally, they will have the same focus or purpose as your company. Tel: 012 429 6040 This Non-Profit Bylaws document is used once a non-profit organization has been incorporated to define the structure and operations of the organization. Co-ops are usually formed so that people can either work together to buy goods (in bulk, for example), market and sell goods produced, trade in goods or jointly produce goods. MEETINGS OF MEMBERS . There are three other guides in our Community Organisers Toolbox that will give you more details on the legal requirements for non-profit organisations. NPOs do not usually choose their target groups according to who can pay for the service, but according to who needs the service most. how it is organised to get the work done. We never got around to incorporating as a non-profit and are now doing that. It also details the duties and restrictions of the organization's officers and board members. You are here. 1.3 Exclusion of replacement rules . Hire the top business lawyers and save up to 60% on legal fees. Central Coast Community Women’s Health Centre Ltd. ACN 001 330 472 . Green papers; Annual reports; Other documents; Documents for public comment; Statistical documents; Parliamentary documents; Search . An organization has a great deal of lati- tude in shaping its bylaws, and does not need to follow this model. ARTICLE I … Tel: 043 743 7725 Constitution of SA; Bills; Draft bills; Notices; Tenders awarded; White papers. We never got around to incorporating as a non-profit and are now doing that. Keyword . This guide gives an introduction to constitutions for non-governmental organisations (NGOs) and community-based organisations (CBOs). 1.4 The Company – its nature, purpose, objects and powers . Organisations that can afford to pay for legal assistance from income or donations can contact LRC to find out which legal practitioners in their area are familiar with the legal environment of non-profit organisations. It is extremely helpful to review other nonprofits in your area for suggestions on how to compose your own constitution. Guarantee companies are useful for non-profit organisations that require corporate status. They were written and produced by the Legal resources Centre [LRC]. 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. Others do not have to register their constitutions, although they may, if they wish to do so. Subjects . Jessica Fortuin It will also explain how people can become members. Just as a constitution organizes a government and describes how that government functions, so do by-laws. The constitution, much like a set of bylaws, outlines the rules the board of directors must follow. The constitution of an incorporated association provides the structure for how the association operates. In law it is called the "founding document" and it is legally binding on the executive and members of the organisation. Fax: 015 295 3541, Free State Describe membership details of the organization: This is where you explain who your members are, including what their character traits are. Also, make sure to explain any factors that can disqualify a person from being a member. Central Coast Community Women’s Health Centre Ltd. ACN 001 330 472 . The law regards these as for-profit organisations. Constitution for a non profit company with members. End Date . 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. It should not contain names or other specific details that will change as the organisation develops. 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). Page | 2 107200572 - 203726 (MEC) Contents . It also helps make sure everyone understands the responsibilities and obligations that go with being a non-profit organisation. | Inputs and verbal reports Co-operatives (co-ops) are not NPOs and do not fall under the NPO Act. It also helps ensure solutions are appropriate to the purpose of the organisation. Document Type . Tax-exempt status is granted by the IRS, which does not directly require nonprofits to include specific provisions in their bylaws. The group may be wound up at any time if agreed by two thirds of those members present and voting at any general meeting. It is a record of agreements on the basic principles of the organisation and is legally binding on all members. Corporate Earnings: When Taxable. If you fail to do that, your application will be rejected. THE COMPANIES ACT 2014 – CONSTITUTION TEMPLATE. Tel: 011 403 7746 State governments have the final say on what must be included in the by-laws. For your public society to be recognised as a legal entity you must register it as an NPC. 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). English. Most organisations that exist to make a profit must register as a private company or as a co-operative under other laws. your constitution will depend on what type of legal structure your organisation has and what law it falls under. 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. No need to spend hours finding a lawyer, post a job and get custom quotes from experienced lawyers instantly. Companies limited by guarantee may also apply to the President for an order exempting them from all or any profits from any source (CITA Section 23(2)). Constitutions should not be too detailed. Vonani wa ka Bila Department of social development. Some kinds of organisations must have written constitutions or founding documents that are legally registered. There are literally hundreds of different free sample bylaw templates for non-profits available on the Web. Penny Dlamini More about Non-Profit Companies and Non-Profit Organisations. 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. A court-imposed alteration to a constitution must be lodged with the Registrar at the Companies Office within 10 working days of the change. These include: From the information you have compiled, create a list of the required elements you are going to include in the constitution. When you start an organisation, the process of developing a constitution helps members to develop clear agreements about the purpose of the organisation and how it will work. It is designed to help a small, charitable, not-for-profit company limited by guarantee with straight-forward membership create a suitable governing document. The directors must approve any such payment before it … Registration of non-profit organisations. If you do not have public membership you can skip this Article. permission from ETU, Important things to know about Constitutions. If your organisation is a non-profit organisation, what type of non-profit organisation it is. Private Bag X901 SUPPLEMENT FOR NON-PROFIT ORGANISATIONS 1. Guide to the Nonprofit Organisations Act | 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. 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. The Association shall have the same powers as that of a company under the Companies Act, as amended. 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 . Constitutions for non-profit organisations. They exist for the benefit of the general public or specific sections of the public. 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. The name will remain “The Phean Project” until the time that the company is dissolved. Just as a constitution organizes a government and describes how that government functions, so do by-laws. Green papers; Annual reports; Other documents; Documents for public comment; Statistical documents; Parliamentary documents; Search . Constitution is the main document of an organization that determines the fundamental aspects of the said organization. If your company is amalgamating with another non-profit company, you will also need have an amalgamation agreement. 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. Much thought is put into constructing a constitution and as you can see once such a constitution needs changes you have to follow the amendment rules stated there. Tel: 08000 37 007 (free help line of the Department of Trade and Industry, Ntsika Cautionary notes . 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. Therefore, it becomes important to create such a document with the utmost care and effort. Have a professional editor look through the document and correct any errors that may be present. Applications to register under the NPO Act must be sent to the Directorate of NPOs at the Department of Social Development: Directorate of NPOs Let them know you are looking for a constitution to study so you can create your own. The members of a non-profit company are persons who participate in the activities of the non-profit company, such as members of a church or a pension fund. 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. Constitution of a company limited by guarantee formed for non-profit charitable purposes . You will also include details outlining how the meetings will take place, such as rules of order. If you need to register you organisation, the laws will tell you what kind of founding documents you will need in order to register the organisation. 1.4 The Company – its nature, purpose, objects and powers . Adapted 27th October 2020 . Every organisation is different and it is imperative that the constitution should accurately reflect the way in which the company operates. Department of social development. Explain why the organization exists: You will want to include facts and statistics outlining why the charity should exist. It is designed to help a small, charitable, not-for-profit company limited by guarantee with straight-forward membership create a suitable governing document. There are many different kinds of … Provide details relating to meetings: Outline how many meetings are going to take place and outline which members are required to be present. Start Date . All charities need governing documents. Tel: (012) 312 7676, Department of Social Development | Executive portfolios How to Write a Constitution. Lobbying, together with the South African NGO Coalition (SANGOCO) and other organisations, for a more favourable tax situation for NGOs. These organisations are regarded as for-profit type organisations and will not fall under the NPO Act. 1. The surplus profits of these organizations are not distributed to the owners but to … Examples of nonprofit organizations constitution can provide a thorough understanding of how businesses are supposed to operate.3 min read. Sample constitution and bylaws. Constitutions for non-profit organisations. The detailed guide developed by the LRC on constitutions on 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. The Cleardocs "Not-for-profit Pty Ltd Company" is not-for-profit because its constitution: The court may alter a company's constitution, if it is satisfied that an application made by either a director or shareholder justifies this. End Date . But, some types of non-profit organisations must register under other laws, whether or not they register with the Department. 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