This briefing gives a basic overview of the steps involved in setting up a voluntary organisation.  You can always get more information from the HANA Development workers.  For more information, please CONTACT US.

1. Identify an unmet need

Ask yourself:

What will be new and unique about the campaign, service or trust fund that you want to set up? Who else might be dealing with a similar issue or service Can you join forces with other organisations or groups rather than starting a new group.   There may already be a voluntary, public or private organisation dealing with similar problems or issues to the one you are concerned about.  You may have good reasons for wanting to set up a separate organisation.  However, it is worth checking to see if another organisation could be persuaded to campaign on your issue or deliver the service that you think is missing or could be delivered better.

Potential supporters and funders will be more enthusiastic if they can see that you will be meeting a clear need and are not duplicating the work of others.

2. Build your team

3. Agree the broad aims and purpose of the organisation

It is important to have some agreement about why the organisation exists and who will benefit from its existence.  This will help you to bring on board supporters, especially if you canvas the views of people who might be interested or benefit from the work of the organisation.  It also helps you to be clear about what your focus should be.

Commonly an organisation will have

Vision: this is your view of what the society or your community could or should be like.  For example, ‘A society in which people with a disability have the same rights and expectations as anyone else’.
 

Mission: this spells out what you want to do in broad terms to turn that vision into reality.  For example, ‘Provide services that increase access to education for a particular group’

Values are shared beliefs about the way you should operate.   For example, ‘respect for difference, honesty, respect, tolerance and responsiveness to the views of people who will use any services you provide ’

Together these provide a framework for operation.  Good organisations will periodically revisit these every few years to ensure that they are still relevant and work well.  Don’t worry if you don’t get it absolutely right the first time around. 

4. Make a plan 

For example:

Set up new service for a group with special needs

It is good practice to:

Prepare a budget – showing how the plan will be paid for and how much money will be available for each activity within it
Undertake a risk assessment – list potential problems that might derail the organisation and, for each, how likely it is and what the impact would be.  Take steps to minimise the risks or the impact of them (for example taking out insurance).

The complexity of the plan will depend on the ambitions of the organisation.  One that aims to employ staff and handle significant amounts of money, for example is likely to need a more detailed and rigorously tested plan than that required by a group which is happy to stay small, informal and solely volunteer run. 

Tasks within the plan will need to be allocated to the steering group or to other volunteers in the short term.  As the organisation matures however this allocation can change, as the next steps explain.

5. Get constituted

You need to prepare a constitution.  This is a document that states in clear terms the boundaries of the organisation and the responsibility and authority for different people within it. 

A constitution will usually include: The purpose of the organisation What (within the law) it has the power to do. Who can and cannot be a member of the organisation. The powers and responsibilities of members. The powers delegated to the governing committee by the membership. How many people will sit on the governing committee, for how long and by what selection process. How the relationship between the governing committee and membership will work?

Members are people or other organisations that have a formal stake in your organisation by virtue of a shared characteristic and/or payment of a membership fee (the exception being if it is a Trust following the wishes of a donor).  Technically they are the organisation and will have ultimate control.  To begin with, however the steering group will have to define who can become a member. For example:

• Being a tenant of a housing association
  
• Sharing a concern about a campaigning issue
  
• Living in a particular area where an organisation operates

It will not be feasible for all members to agree all the decisions necessary to run the organisation.  They should therefore appoint a committee to whom the membership  can delegate responsibility for taking care of the organisation (a role known as ‘governance’).  Often people who have worked on the steering group are willing to stand for election to this committee so in practice there is likely to be continuity between the two bodies.

In the short term the steering group should make broad decisions, which should then be put to the membership at a formal meeting.

Model constitutions are available that you can use as a base for yours.  But don’t just rehash these - make sure you set up the type of organisation that is fit for your purpose.  Click on the links below to download a model constitution

• Model Constitution Template from "Sport England" 
• Basic Sample Constitution from "Involve"

6. Decide the legal standing: Formal or informal?
 
Once a membership based voluntary organisation has developed a constitution it becomes what is known as a voluntary association.  It will be able to do certain things, for example set up a bank account.  Many small organisations are happy to stay at this level. 

In deciding whether to incorporate or not look at the risk factors.  Organisations which intend to employ staff, handle significant amounts of money and/or work with a challenging client group would be well advised to give this serious consideration since all involve risks.

Charity status is a badge that an organisation can wear that entitles it to special privileges.  Both incorporated and unincorporated voluntary organisations can apply for charity status.  To acquire it they need to prove (in simplified terms) that they are of public benefit, independent of government, non party political and not for private gain.  The advantages include some tax breaks, wider fundraising opportunities and potentially greater public trust.  The flipside is similar to incorporation, with governing body members legally bound to act responsibly (not necessarily a bad thing!) and obliged to report to the Office of the Scottish Charity Regulator. 

For more information about different types of legal structures, CONTACT the HANA office.

How long will all this take?

Setting up a new voluntary organisation can take a number of months.  Because you are trying to reach consensus on big decisions very often these will be held up, for example, until the required people can all make it to a meeting.  It is a bit like wiring a building: lots of delicate and time consuming work behind the scenes but, do it right, and the lights will go on first time.    Rush it, however, and costly repair work may be needed down the line.   Depending on how big, complex, and/or formal the organisation will be, further advice and guidance may be necessary.    HANA has information on a range of issues relevant to building and sustaining a voluntary organisation.  Your local council for voluntary service (CVS) may also be able to offer support and guidance on a one to one level.

What other practical things might be needed?    Do you prefer hands on action?  Do our 6 steps involve too much abstract discussion and conceptualising for your liking?  Be reassured - a lot of practical problem solving will also be necessary to get things up and running.      Things to put in place include:

• A filing cabinet and system for documents and correspondence
  
• A designated postal address and phone number for the organisation
  
• A bank account (once the organisation is constituted)
  
• Access to ICT including an email address (if you don’t have a computer you might, for example, set up a web-mail account and use free facilities at your local library)

If the organisation intends to occupy premises and/or employ staff it will be important to get further information on legal and good practice requirements with regard to these. 

Remember, HANA will be making a hot desking facility available which will provide all the basic office set up including desk space, IT equipment, stationary and file storage.

Contact the HANA office for more information.