Changing your charity's governing document - new guidance
The Charity Commission has published an updated version of CC36 Changing your charity's governing document (November 2008), which can be downloaded from the Commission's website at http://www.charitycommission.gov.uk/publications/cc36.aspAll charities have a governing document, which may be a constitution (for an unincorporated association), memorandum and articles of association (for a company) or a trust deed. It is important to understand that trustees must ensure that their charity complies with the charitable purpose and objects set out in the charity's governing document. All trustees should have a copy of this document and be familiar with it.
Why might a charity want to change its governing document?
Trustees are legally responsible for administering the charity in accordance with the governing document, so its provisions must be up-to-date.
There is confusion about who the trustees are.
An inadequate governing document can make it more difficult to sort out disputes.
Charities may find themselves undertaking work which is not permitted under their governing document (eg working with a different set of beneficiaries or in a wider geographical area), in which case the trustees risk being in breach of trust.
Collaborative working, where the charity operates with partners to deliver work, can present particular risks.