Group fund constitution template for alumni and welfare associations

A constitution is the rulebook your fund falls back on when there's a disagreement — which is exactly when you need it to be clear. Below is a template structured the way most successful alumni, church and community funds organise theirs. Adapt the bracketed parts.

This template is a starting point for an informal member fund. If your group will register as a cooperative, society or company, local law may require specific clauses — take advice before adopting it.

#1. Name and purpose

The fund shall be known as [Name] ("the Fund"). Its purposes are to: (a) encourage regular saving among members; (b) support members in times of bereavement, illness and emergency; (c) provide members with access to loans on fair terms; and (d) [other purposes].

#2. Membership

Membership is open to [eligibility — e.g. graduates of X School, class of 2009]. A person becomes a member on admission by the management committee and payment of the first monthly contribution. Each member shall provide contact details and name a next of kin.

Include how members leave (notice period, what they're paid out) and how a member can be removed (for example, for fraud or prolonged non-payment after due process).

#3. Contributions

Each member shall contribute a minimum of [amount] per month, due by the [day] of the month. Members may contribute more than the minimum. A contribution received after the due day is late; a month with no contribution is missed.

See how to set monthly dues for picking the amount.

#4. Member standing

A member who misses two consecutive contributions is behind and may not take new loans. A member who misses three consecutive contributions is suspended: welfare benefits and loans are paused until arrears are cleared. Standing is restored once contributions are brought up to date.

Our non-payment playbook explains why automatic, reversible standing works best.

#5. Savings, shares and dividends

Each contribution, less the welfare premium, is credited to the member's savings and converted to shares at the share price in force for that month. Surpluses from loan interest and penalties may be distributed to members in proportion to their shares, as decided at the annual general meeting.

Details in shares and dividends explained.

#6. Welfare benefits

The Fund offers welfare packages, each with a monthly premium and annual limits for medical, funeral, welfare and emergency claims. Claims are submitted with supporting evidence and approved by the fund manager up to the member's remaining limit. Suspended members are not eligible.

See welfare packages explained.

#7. Loans

Members in good standing with at least [six] months' membership may apply for a loan. Applications are reviewed by the credit committee, which recommends approval or decline to the fund manager. No official may review or approve their own loan. Interest is charged at the rates set for each loan product. A member may hold only [one] loan at a time.

Build this out using how to run loans in a savings group.

#8. Officials and committees

The Fund shall have a Chairperson, Secretary and Fund Manager (Treasurer), elected at the AGM for a term of [two] years. A Credit Committee of [three] members reviews loan applications. An Audit Committee of [two] members, who shall not hold any other office, reviews the accounts.

Roles are explained in treasurers and committees.

#9. Money handling

All funds shall be held in accounts in the name of the Fund with at least two signatories. No payment shall be made without the authorisation of two officials. Every transaction shall be recorded in the Fund's books within [seven] days.

#10. Meetings and reporting

An Annual General Meeting shall be held within [three] months of the financial year end. A financial report shall be shared with members [monthly / quarterly]. Quorum for a general meeting is [one third] of members.

#11. Audit

The accounts shall be reviewed annually by the Audit Committee or an independent reviewer, whose report is presented at the AGM.

Use our annual audit checklist.

#12. Amendments

This constitution may be amended by a two-thirds majority of members present at a general meeting, provided the proposed amendment was circulated at least [fourteen] days in advance.

#13. Dissolution

If the Fund is dissolved, outstanding loans shall be recovered, liabilities paid, and remaining assets distributed to members in proportion to their savings.

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Once your rules are agreed, the hard part is applying them consistently every month. AwaFund turns these clauses into settings — dues, standing thresholds, welfare limits, loan policy and committee approvals — so the fund runs by its own constitution automatically.

Frequently asked questions

How long should a constitution be?

Long enough to answer the questions that cause disputes, short enough that members actually read it. Four to eight pages is typical for a group fund.

How do we change the constitution later?

Include an amendment clause — for example, changes need two weeks' notice and a two-thirds majority at a general meeting. Record every amendment with its date.

This guide is general information to help groups organise themselves. It isn't financial, tax or legal advice — rules for savings groups differ by country, so check with a qualified adviser for your situation.