Memorandum Of Association For Non Profit Organisation Template for England and Wales

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What is a Memorandum Of Association For Non Profit Organisation?

The Memorandum of Association For Non Profit Organisation is a crucial document required when establishing a non-profit entity in England and Wales. It forms part of the organization's constitution and must be filed with Companies House during incorporation. The document outlines the organization's fundamental characteristics, including its charitable or non-profit purposes, the limitation of liability, and the restriction on distribution of profits to members. It serves as a permanent record of the organization's founding principles and must align with both the Companies Act 2006 and any relevant charitable legislation.

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A lawyer, legal researcher and legal tech founder, Swetha has built AI products deployed inside Tier 1 firms and enterprises. She ensures GenieAI's alignment with the latest regulation and executes testing on the legal robustness of Genie output.

Reviewed by

Imad Mohammed Nazar

Legal Engineer, GenieAI

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A Skadden-trained M&A lawyer, Imad advised on cross-border transactions and contractual risk before moving into legal AI. He reviews GenieAI's output for compliance and enforceability across our 150+ supported jurisdictions, as well as facilitating external benchmarking.

Jurisdiction

England and Wales

Publisher

GenieAI

Sector

Business

Cost

Free to use

Last updated

About the Memorandum Of Association For Non Profit Organisation

A Memorandum of Association For Non Profit Organisation is the primary constitutional document you need to establish a charitable or non-profit company in England and Wales. This legally binding document sets out your organisation's fundamental structure, purposes, and operational framework, and must be filed with Companies House as part of your incorporation process under the Companies Act 2006.

When do you need this document?

You need this memorandum when establishing any charitable company limited by guarantee, community interest company, or other non-profit organisation that requires formal incorporation. This applies whether you're setting up a charity to provide community services, establishing an educational foundation, creating a sports club, or forming any organisation with exclusively charitable or community purposes. The document is also required when converting an existing unincorporated association into a company structure, or when establishing a subsidiary charity under an existing charitable organisation.

Key legal considerations

Your memorandum must clearly define your organisation's charitable or non-profit objects in language that complies with both company law and charitable purposes as defined in the Charities Act 2011. The liability clause must specify that members' liability is limited to a nominal guarantee amount, typically £1 or £10 per member. Critically, you must include provisions preventing the distribution of profits or assets to members, ensuring any surplus income is used exclusively for your stated charitable purposes. The dissolution clause must specify that remaining assets will transfer to similar charitable organisations, never to members personally. If seeking charitable status, your objects must fall within the thirteen recognised charitable purposes under the Charities Act 2011.

Legal requirements in England and Wales

Under the Companies Act 2006, your memorandum must state your company name, confirm your registered office is in England and Wales, and include your objects clause and liability statement. The company name must end with "Limited" unless you obtain exemption from Companies House for charitable companies. Companies House requires specific wording for charitable companies, and if you plan to register as a charity, the Charity Commission will review your memorandum to ensure compliance with charitable law. You must also ensure your objects are sufficiently detailed to satisfy both Companies House registration requirements and potential Charity Commission registration. The document must be signed by each founding member in the presence of a witness, and you'll need to file it alongside Form IN01 and your Articles of Association when incorporating.

GOVERNING LAW

Applicable law

This Memorandum Of Association For Non Profit Organisation is drafted to comply with England and Wales law. Key legislation includes:

Companies Act 2006: Primary legislation governing company formation, registration, and operation in England and Wales, with particular focus on Parts 1-5 for memorandum requirements

Charities Act 2011: Core legislation for charitable organizations, defining charitable purposes, registration requirements, and regulatory framework

Companies (Model Articles) Regulations 2008: Provides default articles of association and standard constitutional documents for companies

Charity Commission Regulations: Regulatory framework providing guidance and requirements for charitable organizations' governance and operations

Companies House Requirements: Filing and registration requirements for companies in England and Wales, including specific forms and documentation needed

Financial Conduct Authority Guidelines: Regulatory guidelines that may apply to financial aspects of non-profit operations

Legal Structure Requirements: Specific requirements for Company Limited by Guarantee structure, commonly used for non-profits

Public Benefit Requirements: Mandatory provisions demonstrating how the organization benefits the public (especially relevant for charitable status)

Directors' Duties: Legal obligations and responsibilities of directors under UK company law

Member Liability Provisions: Rules governing the extent of members' liability in a non-profit organization

Asset Lock Provisions: Requirements for securing assets for charitable/non-profit purposes and preventing private benefit

Dissolution Procedures: Legal requirements for winding up the organization and distributing remaining assets

Insolvency Act 1986: Relevant provisions regarding organizational insolvency and financial difficulties

Corporation Tax Act 2010: Tax legislation relevant to non-profit organizations, including potential exemptions

Finance Act - Gift Aid: Provisions relating to Gift Aid and tax-efficient giving for non-profit organizations

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