A key function of the Management Committee is to determine the direction and scope of the organisation over the longer term. This is usually reviewed on a 3 or 5 year basis through a process called strategic planning.
The Management Committee of the organisation has the responsibility for both establishing and protecting the overarching purpose, fundamental values and ethical principles which govern the activities of the organisation. These are often referred to as the vision, mission and values. Your vision, mission, and values form the foundation of your organisation and its planning for the future.
Article answering Frequently Asked Questions (FAQs)
For your group or organisation to be a charity, your aims and purposes must be charitable as defined by charity law (for public benefit or a significant section of the public), and in Northern Ireland approved by the Inland Revenue.
An industrial and provident society (IPS) is an incorporated organisation set up to carry out a trade or business for community benefit. It is incorporated and therefore has a legal entity in its own right.
A company limited by guarantee is an incorporated organisation set up as a legal entity in its own right. This means that the liability of members, including the Management Committee is usually limited to a nominal amount (although it does not protect against fraud, negligence, etc). A company may also be a charity, if its purposes and activities are approved by the Inland Revenue.
A trust is unincorporated and does not have any independent existence in law. Therefore, the trustees are personally responsible for any debts or claims against the organisation that cannot be met out of the organisation’s own resources. A trust may also be a charity, if the Inland Revenue approves its purposes and activities.
An unincorporated association is the simplest and favourite legal structure, usually chosen by new groups. The organisation does not have any independent existence in law. Therefore, the Management Committee members are personally responsible for any debts or claims against the organisation that cannot be met out of the organisation’s own resources. An association may also be a charity, if the Inland Revenue approves its purposes and activities.
Groups and organisations set up as an association or company limited by guarantee are generally membership organisations. The Management Committee must be familiar with the organisation’s membership structure, and members’ rights and responsibilities. Membership organisations should maintain an up-to-date registry of its member. If your organisation is a company limited by guaranteed you have a statutory obligation to maintain your membership records.
As your organisation develops or grows, you may find that areas of your governing document no longer apply or restrict the organisation. If this is the case, it may be necessary to undertake a review of your governing document prior to any changes. This may involve identifying where changes need to be made and considering how any proposed changes may affect the organisation.