It should not contain names or other specific details that will change as the organisation develops. 1.2 Definitions . 1.5 Application of in Search the site . (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. 1.1 Name . If your company is amalgamating with another non-profit company, you will also need have an amalgamation agreement. Also, make sure to explain any factors that can disqualify a person from being a member. your constitution will depend on what type of legal structure your organisation has and what law it falls under. Page | 2 107200572 - 203726 (MEC) Contents . Tel: 08000 37 007 (free help line of the Department of Trade and Industry, Ntsika of the company constitution. You can use the given pdf sample as reference material for preparing a well-rounded constitution document for your organization. The court may alter a company's constitution, if it is satisfied that an application made by either a director or shareholder justifies this. 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. Let them know you are looking for a constitution to study so you can create your own. End Date . The detailed guide developed by the LRC on constitutions on Private Bag X901 Provide details relating to meetings: Outline how many meetings are going to take place and outline which members are required to be present. Fax: 018 381 6258, Mpumalanga Constitutions for non-profit organisations. Baba Michael Jordaan Tel: 043 743 7725 Green papers; Annual reports; Other documents; Documents for public comment; Statistical documents; Parliamentary documents; Search . For a full explanation of what a non-profit organisation is and what different structures can be used, see the LRC guide on Legal structures commonly used by non-profit organisations. You are here. The constitution is the key founding document of an organisation. These laws tell you what must be coved by the founding document of your organisation. 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. Applications to register under the NPO Act must be sent to the Directorate of NPOs at the Department of Social Development: Directorate of NPOs  Write your nonprofit bylaws sample bylaws | nonprofit ally. A non-profit company must have at least three incorporators and three directors and may be registered with or without members. A constitution helps solidify the purpose and function of an organization, providing an overarching blueprint for its members. Constitution of SA; Bills; Draft bills; Notices; Tenders awarded; White papers. Hire the top business lawyers and save up to 60% on legal fees. Describe membership details of the organization: This is where you explain who your members are, including what their character traits are. Get legal advice if you are not sure how to apply for a court order. The share structure allows the company to distribute profits and dividends to shareholders in proportion to their shareholding. 1.3 Exclusion of replacement rules . Most organisations that exist to make a profit must register as a private company or as a co-operative under other laws. The three most basic types of non-profit organisations are: The LRC guide on Legal structures commonly used by non-profit organisations will help you to understand. Constitutions are not like plans. Non-profit corporations that are charities registered under the federal Income Tax Act will ... copy of the incorporating document or other governing document (Letters Patent, articles of incorporation, trust deed, constitution, etc. In South Africa the Non-Profit Organisations Act (NPO Act) covers non-profit organisations and the legal steps for registering them. |   Executive portfolios   The Association shall have the same powers as that of a company under the Companies Act, as amended. 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. Just as a constitution organizes a government and describes how that government functions, so do by-laws. There is not much competition among nonprofit entities, which is why many of them will be more than willing to provide you with a copy of their constitution. … No, under the terms of the Cleardocs not-for-profit proprietary limited company Constitution: directors cannot be paid fees for their services; the directors can be remunerated for travel and other expenses they incur in relation to their duties as directors. Others do not have to register their constitutions, although they may, if they wish to do so. Sample constitution and bylaws. If there are any approval processes taking place, you will need to outline them here. Start Date . Assistance to NPOs to establish a Voluntary Association, Trust or Section 21 Company. Assistance to NPOs to register with other public offices, such as the Receiver of Revenue for tax or VAT purposes. Governing documents are the formal documents that set out: the charity’s charitable purpose or purposes. Constitutions for non-profit organisations. Additionally, they will have the same focus or purpose as your company. English. It is extremely helpful to review other nonprofits in your area for suggestions on how to compose your own constitution. ARTICLE IV. Non-voting Membership The board shall have the authority to establish and define non-voting categories of membership. It would be advisable to check with them whether the information provided in these guidelines is still up to date and correct because the laws and regulations applying to NPOs could change. 0001. 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). This is also extracted from the Minnesota Council of Nonprofits Sample Bylaws with Membership. It should contain all the key agreements made by members on how the organisation will work. When members have developed the constitution, they can use it to register as a non-profit 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. If you choose to follow state law, restating them in your bylaws will ensure that all your operating rules are in one document. Tel: 012 429 6040 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. By contacting such nonprofits, you can introduce yourself as a representative of a similar organization and request to see a copy of their constitution. They should not, for example, include specific objectives that are only relevant for a short part of the organisation's life span. Central Coast Community Women’s Health Centre Ltd. ACN 001 330 472 . This may be very easy sometimes in a small organization. that the charity operates on a not-for-profit basis, and. Tel: 0800 11 38 57 (free help line), Self-Employed Women's Union The Association shall have the same powers as that of a company under the Companies Act, as amended. Because co-ops are formed to produce profits for the members, they do not fall under the NPO Act. Education & Training guide, This material may not be used for profit without MEETINGS OF MEMBERS . The following are some organisations that may be able to help these kinds of organisations with assistance and advice: Centre for Small Business Promotion Search the site . 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. 1.4 The Company – its nature, purpose, objects and powers . In fact, these constitutions are generally only seen among religious and charity-oriented nonprofit entities. Green papers; Annual reports; Other documents; Documents for public comment; Statistical documents; Parliamentary documents; Search . The name will remain “The Phean Project” until the time that the company is dissolved. 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. annual general meetings and other meetings, elections and appointments for the different structures of the organisation, how the organisation is governed and how decisions are made. NSW Fair Trading has prepared a Model constitution, which covers the matters required by Schedule 1 of the Associations Incorporation Act 2009 (the Act). 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 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). 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)). Whether your organisation is a non-profit organisation or not. Dissolution. The minimum amount of members required on a Non Profit Organization is five. This Non-Profit Bylaws document is used once a non-profit organization has been incorporated to define the structure and operations of the organization. You can register a non-profit company as a: standard non-profit company (with members) standard non-profit company (without members) Example constitution and bylaws (__enter chapter name. 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. … Want High Quality, Transparent, and Affordable Legal Services? 1.5 Application of in They should only record basic and long-term facts about the organisation that you will not need to change often. Ideally, these entities will be in your same county and state. There is not much competi… Get a court order. How to complete the npo application form 2011. A state's attorney general's office will regulate non-profit organizations while the federal government is the entity granting an … Lungi Mathole It is designed to help a small, charitable, not-for-profit company limited by guarantee with straight-forward membership create a suitable governing document. Because of this aspect of constitutions, you will not normally find them among for-profit companies. These organisations are regarded as for-profit type organisations and will not fall under the NPO Act. The Cleardocs "Not-for-profit Pty Ltd Company" is not-for-profit because its constitution: 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. 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. Explain why the organization exists: You will want to include facts and statistics outlining why the charity should exist. Tel: 018 381 4901 Other essential corporate governance matters; State nonprofit laws usually address nonprofit governance matters. Just as a constitution organizes a government and describes how that government functions, so do by-laws. Tel: 056 215 2316 Advice to NPOs on the type of organisation they should establish to achieve their aims and objectives. 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. Tax-exempt status is granted by the IRS, which does not directly require nonprofits to include specific provisions in their bylaws. (1) A non-profit organisation shall not carry out operations unless it is registered under this Act. 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. We never got around to incorporating as a non-profit and are now doing that. 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. Fax: 017 683 0135. The group may be wound up at any time if agreed by two thirds of those members present and voting at any general meeting. Subjects . Every organisation is different and it is imperative that the constitution should accurately reflect the way in which the company operates. They were written and produced by the Legal resources Centre [LRC]. If you do not have public membership you can skip this Article. Co-ops register with the Registrar of Co-operatives at the Department of Agriculture using a number of founding documents that are required. 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. The description of structures also should not be too detailed. Corporate Earnings: When Taxable. Lobbying, together with the South African NGO Coalition (SANGOCO) and other organisations, for a more favourable tax situation for NGOs. Get an Alberta NUANS report. Registration of non-profit organisations. Tel: 021 706 2050 The constitution, much like a set of bylaws, outlines the rules the board of directors must follow. It also helps make sure everyone understands the responsibilities and obligations that go with being a non-profit organisation. A court-imposed alteration to a constitution must be lodged with the Registrar at the Companies Office within 10 working days of the change. Was this document helpful? Tel: 011 403 7746 Step 3. This also contains advice specific to the different types of NPOs. Once you have developed the constitution and bylaws, review them often. If you have questions regarding how to develop a constitution for nonprofit organizations, post your legal need on UpCounsel today. The surplus profits of these organizations are not distributed to the owners but to … A non-profit company is not required to have members. Guide to the Nonprofit Organisations Act  |  Free Free Non Profit Bylaws Template Download Available for Download in PDF Format. It will provide much help in the smooth functioning of all operations … Guarantee companies are useful for non-profit organisations that require corporate status. They show some of the most general ways of writing bylaws. It is extremely helpful to review other nonprofits in your area for suggestions on how to compose your own constitution. ARTICLE I … 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. 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). Have a professional editor look through the document and correct any errors that may be present. Tel: 031 307 1061 It also helps ensure solutions are appropriate to the purpose of the organisation. 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. Examples of nonprofit organizations constitution can provide a thorough understanding of how businesses are supposed to operate. This Non-Profit Bylaws document is used once a non-profit organization has been incorporated to define the structure and operations of the organization. Click below to go to them: You will find details about LRC and how you can contact them in these guides Pretoria All charities need governing documents. It is designed to help a small, charitable, not-for-profit company limited by guarantee with straight-forward membership create a suitable governing document. 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. Hlengiwe Gasa There are three other guides in our Community Organisers Toolbox that will give you more details on the legal requirements for non-profit organisations. Meshack Nkabinde Download PDF. Tel: 015 295 3542 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. The constitution of an incorporated association provides the structure for how the association operates. How to Write a Constitution. Tel: (031) 304 3042, Meeting skills   Document Type . This Guide is intended only for those organisations that fall under the Non-Profit Organisations Act (NPO Act). Department of social development. It does not cover private companies or even co-operatives or income generating projects that exist solely to produce benefits for members. In law it is called the "founding document" and it is legally binding on the executive and members of the organisation. Look at the bylaws of already-established not-for-profit corporations, their structure, their wording, and their sections. The directors must approve any such payment before it … Constitution is the main document of an organization that determines the fundamental aspects of the said organization. Most of the time you have to have the majority (2/3) votes to amend the constitution. When the company is wound-up the liability of the shareholders is limited to the amount they've paid for their shares. They should not change regularly. 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. Many nonprofits pursue 501(c)(3) tax-exempt status, which allows organizations to avoid certain corporate, sales, and property taxes. Fax: 056 215 2316, Gauteng It's simple enough, file Article of Incorporation with the state and include a $25 check. Start Date . The objectives you include should be relevant to the long-term goal and purpose of the organisation. Subjects . Before an organisation draws up a constitution, the members must make decisions about the following things: Your decisions in each of these three areas will affect what kind of constitution you need. You may need a court order for change of capital. An organization has a great deal of lati- tude in shaping its bylaws, and does not need to follow this model. 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. The constitution provides clarity about these issues for people both inside and outside the association. NPOs do not usually choose their target groups according to who can pay for the service, but according to who needs the service most. Some kinds of organisations must have written constitutions or founding documents that are legally registered. Throughout history, technologies that have increased access to and the range of available information have fundamentally shifted the legal and moral structures that have governed societies. Unlike a society, a CLG is governed by the Companies Act. A constitution is a document that provides the rules on how an organization of people (e.g., a small club, a university group, or even a group as large as a country or state) runs its affairs. Youth-centered organization constitutions are not that different from those other types of organizations in that sense. An association may: adopt the Model constitution, or ; adopt its own constitution. 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. Constitution for a charitable company limited by guarantee. Share it with your network! 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 . The Education and Training Unit would like to thank LRC for making their material available. 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. 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. A typical constitution addresses all aspects of the organization, purpose, functions, persons in charge and members. Non Profit Bylaws Template Preview The following bylaws are intended only as a model. This is a wide group of organisations, from large charitable NGOs like Child Welfare to small community organisations like sports clubs or civics. Constitution of SA; Bills; Draft bills; Notices; Tenders awarded; White papers. A non-profit constitution is nothing more than the organization's by-laws. If your organisation is a non-profit organisation, what type of non-profit organisation it is. Examining Generational Constitutions 30th July 2018 . 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. The Legal Resources Centre defines a co-op as "a group of people, who are the members, who together own and control an enterprise for the profit and benefit of themselves. You are here. If you fail to do that, your application will be rejected. Name a. These fundamentals of the organization are matters such as the organization name, purpose, membership, officers, meetings, rules of procedure, and amendments. 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. Page | 2 107200572 - 203726 (MEC) Contents . 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 … 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. Home » Documents » Acts. Additionally, they will have the same focus or purpose as your company. 1 A PRACTICAL GUIDE FOR BOARD … 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. 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 Therefore, it becomes important to create such a document with the utmost care and effort. Voluntary Association – Constitution The founding documents of the NPO must meet the provisions of Section 12 (A-O) of the Nonprofit Organisations Act, 1997 (Act 71 of 1997). If preferred, you can include additional areas that detail information you believe is relevant to your particular organization. It is a record of agreements on the basic principles of the organisation and is legally binding on all members. This guide on Constitutions is only relevant to organisations that are both non-profit and non-governmental. It's simple enough, file Article of Incorporation with the state and include a $25 check. Fax: 043 743 2656, Northern Cape LRC's Non-Profit Organisations Legal Support Project is based in the Cape Town office but advice and assistance can also be requested at the LRC's Pretoria, Johannesburg, Grahamstown and Durban Offices. If members receive payment or benefits, it is only in the form of a reasonable salary and benefits in return for the work that is done as an employee of the organisation. Contact the Legal Resources Centre Office nearest to you for advice if you need it. 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. Non-profit organizations must be designated as nonprofit when created and may only pursue purposes permitted by statutes for non-profit organizations. You are here: Registration gives the organisation rights, duties and privileges in relation to accountability, fundraising and tax. 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. It also details the duties and restrictions of the organization's officers and board members. 1.3 Exclusion of replacement rules . SANGOCO has produced an introductory guide on how to set up a non-profit organisation. 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 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. Department of social development. 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 . Nonprofit Organisations Amendment Act 17 of 2000. 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