Charter of a non-governmental organization: key provisions and their significance

Did you know that without a charter, no non-governmental organization can even start its activities, let alone operate successfully? Let's take a closer look at why this is so important.

Thecharter of a non-governmental organization is a set of rules established by the founders of the organization that govern the organization's activities, its relations with other organizations and citizens, rights and obligations in a certain area of social relations.

But what should this charter contain? It is approved at the constituent assembly, which must include at least two founders. The requirements for the content of the charter are set out in the Law of Ukraine "On Public Associations".

The key points that should be covered in the charter of a non-governmental organization are set out in Article 11 of the Law of Ukraine "On Non-Governmental Organizations", namely:

♦ Name: full and abbreviated, including the organizational and legal form (public organization or public union).

Purpose and activities: exercise and protection of rights and freedoms, satisfaction of public interests.

Membership: conditions of acquisition and termination, rights and obligations of members.

Governing bodies: powers, procedure of formation, terms, procedure of representation.

Meetings: frequency, decision-making procedures.

Reporting: frequency and form of reporting by governing bodies to members.

Appealing decisions: the procedure for appealing and reviewing complaints.

Finance: sources of income and use of funds and property.

Separate subdivisions: procedure for establishment, operation and termination.

Amendments to the charter: procedure for making changes.

Self-dissolution or reorganization: procedure for making a decision and using residual funds and property.

The charter may provide for additional provisions regarding the formation, operation and even self-dissolution of the organization. The main thing is that they do not contradict the law. Since most public associations are non-profit, it is important to take into account the requirements of the Tax Code.

To obtain the non-profit status, organizations must clearly state in their charter the prohibition of distribution of income among founders and members, and in their constituent documents the transfer of assets to one or more non-profit organizations of the relevant type or transfer to the budget in the event of termination of a legal entity - a non-profit organization (as a result of its liquidation, merger, division, accession or transformation).

Do not forget that clause 133.4.2 of the Tax Code stipulates that all income should be used exclusively for the realization of the goals and objectives of the organization. Therefore, it is important to carefully specify the purpose of the activity and sources of funding in the charter. This will help you avoid financial problems in the future.

Note that now the charter does not need to specify the legal address or settlement! This means that changing the office no longer requires amending the document - convenient, isn't it?

So, if you are planning to set up a non-governmental organization, remember: a properly drafted charter is the key to success. It will help you avoid difficulties during registration and in the course of your activities.